Have you made an estate plan yet? Is the right time for estate planning and creating a fund or trust? Do you want to secure your family and fulfill your wishes even after your demise? Estate planning helps in both; it ensures your family by avoiding a lengthy probate process and fulfills your desires after death. Though the question remains, ‘when should you start an estate plan?’ The estimation of a perfect estate plan is based on the age group you enter.
When to start an estate plan?
It is better to start estate planning as soon as you turn legal and open your savings account. When you open your savings account, you choose a nominee. The nominee gets the money in your savings version after your demise.
- If you have minors in family
It’s best to choose a trusted guardian for your minor in case of your deteriorating health or sudden demise.
- You tend to travel a lot or are planning one.
In case of an unseen accident or demise, estate planning would help your family to avoid a lengthy probate process and access your assets quickly.
- New birth in the family
Updating your will annually or in a year or two will help you amend your choice accordingly to the changes in the family.
Making a will
It is best to make a will as soon as you reach legal age. If you own assets and are concerned about the welfare of your family, a will or a trust is the best option. You can choose a power attorney or health care proxy in critical health conditions and let your family access your assets and property with no problem. However, in many cases, due to invalid will or no will, families undergo many financial issues and a lengthy probate process.
In the presence of a well-planned will, the family can avoid probate and distribution of assets even after your demise is according to wishes.
Making a trust
It is best to create trust in case of more assets, property, and investments. However, trust helps to avoid probate and lets your beneficiary access your assets, property, and investments. It reduces or exempts tax when passing assets to your beneficiary. The property is divided while you are living and distributed after your demise.
There are types of trust, but the most known are living and joint trust.
In Joint trust, you and your spouse create this trust together. In case of the demise of one partner or spouse, the other can access the assets, investments, and property with no probate process. If both spouses are critical or not alive, power of attorney can manage the trust until you are healthy or your minor is of legal age.
In the living trust, you can access and control your assets, property, and investments with no issue, and your wishes are followed when you are alive and after your demise.
Benefits of estate planning
- It helps avoid the probate process if you have a perfect estate plan.
- Exemption of tax and many other financial benefits.
- Your wishes are fulfilled when you are living and even after your demise.
When to start an estate plan
- You can update your estate plan in case of an increase in assets and property.
- If there is a death or birth in your family
- In case of a divorce or marital dispute.
- The new addition to the family by marriage or adoption.
Make sure to update annually or in 2 or 3 years.
Estate planning creates security for yourself and your family.
Your wishes are followed while living or after your demise. Estate planning brings financial benefits. Your future and your family are planned with or without you.
An estate planning professional guides you and advises you to create an estate plan. Your estate planning goals and ways are discussed to reach them. The estate plan is discussed with you and your family in the presence of a legal advisor. The estate planning professional helps you utilize various tools to use your assets and property to their ultimate potential.
Estate plans are supposed to start as soon as you turn 18 or are legal. The earlier you start estate planning, the more beneficial it is. Securing your family well being and your assets are any individual’s priority. Therefore, ensuring this estate planning is essential.