When Should I Start Planning My Estate?

There are many misconceptions when it comes to estate planning. People miss out on the chance to preserve wealth in their family because they think they are too young to start planning an estate or need more assets. 

The reality is that any of us can pass unexpectedly, and having a plan helps our loved ones honor our legacy and navigate through the period after our death with more direction. Let's discuss the difference between an estate and a will, when to start planning, and items to consider.

Estate vs. Will: Understanding the Differences

Estate plans and Wills seem interchangeable, but they serve different purposes. A Will outlines your wishes for distributing your assets after your passing, while an estate plan encompasses a broader spectrum of considerations. An estate plan can include a Will, but also covers aspects like healthcare directives, guardianship for minor children, and strategies for minimizing taxes.

When to Start Estate Planning

Many individuals wonder when the right time is to start estate planning. The answer is simple: as early as possible. Life is unpredictable, and waiting for significant life events to trigger estate planning can lead to complications. If you're getting married, becoming a parent, acquiring substantial assets, or starting a business, it's time to create an estate plan. Don't delay; the peace of mind that comes with knowing your affairs are in order is invaluable.

How Often to Update Your Estate Plan

Creating an estate plan is not a one-time endeavor; it's an ongoing process. Changes in your life circumstances, financial situation, and even laws and regulations can affect the effectiveness of your plan. Reviewing and updating your estate plan every 3-5 years or after significant life events is recommended. Keeping your plan current ensures that it accurately reflects your wishes and the current legal landscape.

Accounts and Financial Assets

Your estate plan should encompass all your financial assets, including traditional accounts and digital holdings. Documenting your account information and login credentials is essential for your beneficiaries to access these assets. Failing to account for digital assets can lead to valuable resources being lost or inaccessible.

Property and Heirlooms

The sentimental value attached to specific properties and heirlooms can complicate estate planning. Strategies like gifting, trusts, and detailed instructions ensure these items are passed down smoothly without causing family disputes. Balancing financial implications with emotional connections is vital to preserving your legacy and your family's harmony.

Business Succession Planning

Business owners have unique considerations when it comes to estate planning. Without a proper business succession plan, the future of your enterprise could be uncertain. Addressing questions of who will take over, how ownership will transition, and how the business's stability will be maintained is crucial. A well-thought-out business succession plan protects not only your legacy but also the livelihoods of your employees.