Planning an estate is a way for you to protect and preserve assets and investments. This is especially important when you’ve worked hard to earn what is yours throughout your lifetime. Knowing what life events may motivate you to begin working on your estate planning sooner can help you better prepare at any stage in your life.
1. Illness
One of the biggest motivators to begin planning your estate is if you fall ill. Experiencing an illness such as terminal cancer or even a chronic or autoimmune disease can cause you to think about what you intend to do with your estate if you’re no longer capable of managing your assets and finances without assistance. If you fall ill, it’s important to consider who you will allow to take charge of your assets and any decisions involving them when you are no longer able to do so on your own.
2. The Loss of a Home or Business
Dealing with the loss of a home or business can also cause you to consider how you plan to manage your estate and current investment portfolio. When it comes to estate planning today, approximately 77% of all Americans surveyed by Legal Zoom state that estate planning is important for everyone, regardless of their income and level of wealth. When disaster strikes or an economic downturn occurs, you’ll need to know what to do and how to manage a loss without devastating consequences for all of your assets or income.
3. The Death of a Spouse
The death of a spouse is another motivator to begin thinking about your current estate plan. When a spouse passes away and you’re without an estate plan in place, the process of organizing and managing assets can quickly become a headache, especially without proper legal assistance. To avoid additional stress when you’re grieving the loss of a loved one, it’s best to plan your estate ahead of time, as this will also provide you with peace of mind as you get older.
4. Relocating
When it comes to homebuyers, it’s estimated that approximately 26% of those who are homebuyers are purchasing a home for the first time, according to the National Association of Realtors. If you’re planning to relocate, you’ll also want to keep the current state of your estate in mind, especially if you’re making a significant investment in a new home or property. Whether you’re relocating for a job or you simply want a change of scenery, it’s essential to protect your investments and assets before physically moving somewhere new.
5. Natural Aging
As you get older, naturally, you’ll want to plan your estate, even if you’re in great health and showing no signs of slowing down anytime soon. If you’re married or if you have children, you may also want to work with a law firm to discuss potential trusts and other accounts you’d like to set up for each of your loved ones. If you are married and have a spouse currently, you can remove up to $12.06 million from your estate (with a SLAT) to place it in an irrevocable trust for said spouse.
Even if you’re in good health and have zero indicators of anything going wrong, an accident can also happen anytime. Investing in your estate planning early on will allow you to rest assured when the time comes that you can no longer manage your finances or assets.
Planning your estate early on in life is not always unusual, especially if you prefer to stay ahead when it comes to finance decisions and financial management choices. With the right guidance and a professional estate planner, you can ensure you’re making wise and informed decisions at every corner, whether you’re managing simple assets or a complex portfolio. The better you understand your options, the easier it will be for you to start planning your estate after a major life event.