Estate planning is a deeply personal process. People make arrangements based on their values and relationships. In many cases, an individual’s estate planning desires may change over the years. A new parent has different concerns than a professional on the cusp of retirement who has multiple grandchildren.
Many people procrastinate instead of taking control of their legacies by establishing an estate plan as soon as possible. They might identify retirement as the ideal time to address their legacy and plan for their protection in the event of a medical emergency. Contrary to what many people believe, waiting until retirement age to establish an estate plan leaves them and their loved ones vulnerable.
When is the right time to establish an estate plan?
Every adult typically needs an estate plan
Younger adults in their teens and twenties might believe that their lack of property or dependent family members makes estate planning unnecessary. However, estate planning is not just about the protection of dependents and the distribution of property. It is also a way for people to address their own vulnerability in an emergency.
When teenagers become adults, their parents lose the legal authority to make decisions on their behalf. A parent can no longer access an 18-year-old’s medical records or make decisions about their health care. Parents also lose access to and control over a young adult’s resources.
If a young adult has a medical emergency, such as a car crash that puts them in a coma, their parents might not be able to manage their medical treatment or address their financial needs. Unless the young adult has a spouse to act on their behalf, they may not have any support or protection.
Drafting advance directives and powers of attorney can be beneficial for young people who don’t have much property or dependent family members yet. They can ensure that they have support in an emergency situation.
They can then add to their estate plan as they mature and their circumstances change. Revising documents and drafting new ones when young adults develop families and acquire resources can help ensure that they have appropriate protection regardless of how their lives change.
Taking the time to establish a comprehensive estate plan can be beneficial for every adult. Even those who do not yet have children or high-value assets may benefit from estate planning early and occasionally revising their documents.
