When Should I Start Estate Planning?

One of the most common questions we hear is “when should I start estate planning?” The answer is simple: if you are a legal adult – 18 or older – you should start estate planning now.

As legal adults, we are responsible for our own finances, assets, and healthcare. Many of us are making money, which feeds into things like savings accounts and retirement investment accounts. We purchase cars and homes. We get married and have children. As life goes on we may start a business, get divorced, or welcome grandchildren. We may purchase second homes, experience a significant health diagnosis, inherit property, or begin caring for a loved one in need. All of these life milestones necessitate a level of protection that only an estate plan can provide.

But an “estate plan” is more than just a will – most estate plans are a collection of actions and documents and tools that each serve a unique purpose.

Here are some of the most common estate planning elements and when you might think about getting started:

Making a Will.

All legal adults will benefit from having a Will. Within a Will, you can dictate how your assets and property would be distributed should you pass away, assign someone to be your healthcare Power of Attorney and financial Power of Attorney, and record other key preferences such as what should happen if you become incapacitated. Having a Will is critical to ensuring your wishes are fulfilled should the worst happen and is important for anyone with assets they want to protect.

Creating a Trust.

Individuals with more significant assets should consider creating a Trust. A Trust is a multi-functional tool that provides for more control over what happens to your assets after you pass away. Property in a Trust may be able to avoid probate and certain fees and taxes that property protected by a Will would not. There are several different types of Trusts and an experienced estate planning lawyer in Milwaukee can help you navigate your options.

Nominating a guardian.

If you are expecting a child, it’s time to nominate a guardian – someone who would care for your child should something happen to you. Typically, you nominate a guardian within the context of a Will, so if you already have a Will created you would update it with this information. If you already have a child or children but have not nominated a guardian, it’s time to call a Milwaukee estate planning attorney to help you get started.

Creating a Power of Attorney.

If you are creating a Will, you will likely designate one or more Powers of Attorney as part of that process. A Power of Attorney document assigns responsibility to a person of your choosing should you become incapacitated and unable to make decisions for yourself. Most people designate Powers of Attorney for healthcare and finances. All adults of legal age should have both documents as part of their comprehensive estate plan.

Updating your estate plan.

An estate plan should be updated every three to five years, or anytime you experience a significant life change or milestone. Getting married or divorced, welcoming a new child or grandchild, coming into an inheritance, buying property, experiencing a significant health diagnosis, starting a business, or opening a new investment account are all reasons to revisit your estate plan. You should also update your estate plan if someone you have assigned a significant role becomes unable to fulfill their responsibilities. Estate planning roles include executor, trustee, agent for healthcare or finances (within a Power of Attorney), or legal guardian for minor children. If someone you have nominated has passed away, become ill, moved out of state, or otherwise cannot fulfill their duties, it’s time to name someone new as soon as possible.

What questions do you have about estate planning? I’m Paul Margerie and I have the answers you need. If you are looking for a Milwaukee estate planning lawyer to help you plan for and protect your future, give me a call. I specialize in Wills, Trusts, Powers of Attorney, real estate, Special Needs Trusts, and issues involving probate.

Wondering if you should start estate planning? You should. Give me a call to get started today.