Why Is It Important to Make an Estate Plan Sooner Rather Than Later?
It is dangerous to wait until you have a health issue before creating an estate plan. Without one, you could potentially lose control over your money, property, health care, and, in some circumstances, the guardianship of your children.
Depending on what health condition or acute injury may unexpectedly befall you, you may be unable to speak, understand others, or advocate for yourself. Part of the purpose of advance planning documents, such as a health care directive, is to maintain your bodily autonomy and express your wishes when you cannot.
Bottom line: The reason for creating an estate plan is to put protections in place not only for you, but also for your loved ones.
Barriers to Advance Planning
People procrastinate in creating an estate plan for various reasons:
· Some do not believe they have enough money or assets to leave behind;
· Others feel inflation’s negative effect has made estate or financial planning less of a priority for them;
· Some feel too intimidated to start the process;
· Other want to begin estate planning, but simply have not gotten around to it
When Should You Create an Estate Plan?
Once a child turns 18 and legally becomes an adult, they are entitled to make their own decisions regarding their medical care, finances, and education. In gaining legal authority over those parts of their lives, they should consider setting up an estate plan. At first glance, this may seem overboard to some, but keep in mind the wide diversity of family structures.
For example, perhaps a young person would want their property to go to a younger sibling, rather than a stepparent. An individual might want the grandparent who raised them, not a parent, to assume decisions over their medical care in the event of an accident.
What Are Some of the Key Estate Planning Documents?
Among the most important documents you may consider securing include:
· a will, through which you can specify who will receive your property and who will become guardians of your minor children after your death
· an healthcare directive, in which you name a person who will carry out your wishes regarding your medical care if you are incapacitated
· a power of attorney, which gives you the ability to name someone you trust to act on your behalf in certain situations if you are unable to do so