When Should You Create An Estate Plan?
Nobody likes talking about serious illness or death. But, it's something that must be done to make sure there are no misunderstandings about your priorities and wishes. If you keep putting this off until "later," your family's options will be extremely limited. And, failing to plan ahead can have devastating unintended consequences, leaving your family overwhelmed, confused and powerless. Instead, you can start getting your affairs in order today by creating an estate plan.
The Best Time to Create an Estate Plan
The absolute best time to create an estate plan is when you start a family or begin acquiring assets. The next best time is before you begin to experience symptoms of a mental or physical disability. Get started if any of these major life events occur:
You get married, divorced, or remarried.
You have a child or adopt a child.
You buy a house or start investing in real estate.
You inherit property or acquire separate property.
You are diagnosed with a debilitating or terminal illness.
You also want to create an estate plan if any of these circumstances apply to you:
You have no children or grandchildren – If you don’t have any descendants, then your other relatives will inherit.
You have children from different relationships – ALL of your biological and adopted children will inherit if you die without a will.
You have placed a child for adoption – In Louisiana, adopted children inherit from both their adopted family and their biological family; however, the birth family does not inherit from the adopted child.
You have an only child – if your only child has no children and dies before you, your other relatives will inherit from you.
You are an only child – if your ascendants (parents, grandparents, etc.) are deceased and you never had any biological or adopted children, then you definitely should consider creating an estate plan so that you control how and to whom your assets are distributed after you die.
These are among the essential documents that should be included in every estate plan:
A general power of attorney to authorize someone else to act on your behalf when dealing with legal matters, financial matters, government agencies, and others, if you become mentally or physically unable to handle your affairs.
A medical power of attorney to authorize someone else to make personal and health care decisions on your behalf in the event of a medical emergency in which you are mentally or physically unable to make those decisions for yourself.
A last will and testament to ensure that your assets are distributed to the right people according to your wishes.
Together, these three documents can reduce anxiety, fear, and stress, give you peace of mind and put you and your family in control during challenging times.
Start discussing your wishes with your family now so that everyone knows what to expect. Don’t leave them in a situation where they wish you had signed powers of attorney and a will. Now is the time to have those documents prepared. Without them, a judge will have the final say on who manages your affairs if you become disabled, and state law will determine who inherits your money, property, and any other assets you own.
NEXT STEPS
Subscribe to Fundamental Estate Planning Simplified, a private podcast created especially to help Louisiana residents get their affairs in order. You will learn why estate planning matters and how to ensure that your wishes are honored both before and after your death. And, because I have a holistic view of estate planning, you will also learn how to wrap up a loved one’s estate without going to court and how to preserve inherited property to create generational wealth. Listen to a few episodes here.
Get this free guide, Getting Your Affairs in Order. You’ll learn how being prepared and planning for emergencies, illnesses, and death will put you and your family in control during difficult times. It also includes a worksheet to help you get started right away and a checklist to inspire you to get it done.
Schedule a telephone consultation online here. Consulting with an experienced legal professional is an educational opportunity for you to gain knowledge, insight, and clarity so you’ll know where you stand. I will help you assess your situation and answer all of your questions. Plus, you will find out more about me and how I serve my clients so you can decide whether you would like further assistance in getting your affairs in order.
If you are creating a comprehensive estate plan, you should also consult with a financial advisor, such as a banker, accountant, CPA, or broker, and an insurance agent. For very large estates, I would recommend that you consult with an attorney who specializes in estate planning.
