Studies have found that the average American does not have an estate plan. One of the top reasons that people give is that they are waiting until they are older, implying that they believe they are currently too young.
Often, this belief centers around the idea that people assume they will pass away in their 70s or 80s. While this is true for many people, it is important to remember that people pass away from unexpected illnesses, medical emergencies or injuries every day. In this sense, waiting until you turn 70 to draft an estate plan could put your estate at risk.
Generally speaking, it is better to make an estate plan long before you actually think it is necessary. You may decide to draft an estate plan in your 20s or 30s, for example, even if you believe that your family will not actually have to use it for decades.
Wouldn’t it become outdated?
It is true that this could cause your estate plan to become outdated. If you write your plan when you are 30, you may own substantially more assets by the time you turn 70 that need to be accounted for. If you leave an advance directive addressing medical decisions at a young age, those decisions could change due to a future diagnosis.
But this should not stop you from creating the plan initially. Instead, it may simply be wise to conduct a regular review and make updates when necessary. As long as you do not neglect your estate plan, you can ensure that it is fully ready for your family when they actually need it.
Setting up your plan
If you do not have an estate plan yet and you think it is time to get one in place this year, take the time to look into all of the necessary legal steps to draft the appropriate documentation.