You’re considering making your first estate plan. Estate planning can be greatly rewarding for you and your loved ones. However, estate planning also has a lot of moving parts.
You may need to ask yourself several questions before drafting your first estate plan.
1. When should you make an estate plan?
You can make an estate plan at any point once you become a legal adult. Many people wait until they’re older before making their estate plans because they’ll have a larger estate.
But, it can benefit people to make their estate plans while they’re still young. This is because people can name a power of attorney who would act on behalf of the testator if they became incapacitated after an injury or medical condition. Testators can also name child guardians to take care of the testator’s children in an emergency or after a fatal condition.
2. Who should you include in your estate plans?
The biggest thing about estate planning is determining beneficiaries for your assets. You may have some idea as to who you want to benefit from your estate. For example, you may wish to name your spouse and children. But, you could also set up a trust for your grandchildren or give to a longtime friend.
3. Should you update your estate plans?
People frequently forget that they have estate plans, but most estate plans need to be updated every few years. People may grow their estate and need to update where assets go after the testator’s passing. Or, an estate plan may need updating after a divorce or childbirth, for example.
4. What kind of legal help do you need?
Estate planning is complicated and it can help to learn your legal options when making an estate plan. You can reach out to someone who has a strong understanding of the law so that your beneficiaries will be protected and your goals for your legacy achieved.