What are the Risks of Delaying Estate Planning?
Many people delay estate planning until they face a serious health issue. Without a plan, you might lose control over your assets, healthcare and even your children. Your loved ones may also face legal battles in probate. Many families have suffered avoidable financial hardship because the courts held up a deceased loved one’s assets.
Estate planning isn’t just for your loved ones. If you cannot care for yourself, the courts must appoint someone to make your financial and health decisions. Laying out a power of attorney, medical proxy and other documents can keep you in control.
Common Barriers to Estate Planning
Even those who understand the importance of estate planning often procrastinate. According to a study by Caring.com, the main reasons include:
- Lack of assets: People believe they don’t have enough assets to leave behind.
- Complicated process: Individuals fear the process is too complicated and don’t know where to start.
- No beneficiaries: They don’t have someone to leave assets for.
- Other priorities: More pressing issues need to be addressed.
When to Start Estate Planning?
According to ElderLawAnswers, you should begin estate planning when you turn 18. Even young adults can benefit from having basic documents, like a will and a healthcare proxy. The sooner you start, the more prepared you’ll be for unexpected events.
What are the Essential Estate Planning Documents?
Before you can start estate planning, you’ll need a few estate planning documents. These include:
- Will: A will specifies who will inherit your assets and who will be the guardian of your minor children.
- Power of Attorney: This document allows you to designate someone to make financial decisions on your behalf if you become incapacitated.
- Healthcare Proxy: A healthcare proxy lets you appoint someone to make medical decisions if you cannot.
- Living Will: A living will outlines your wishes regarding medical treatment and end-of-life care.
Key Takeaways
- Ensures Control: You maintain control over your assets, healthcare decisions and guardianship of minor children.
- Reduces Stress: Proper planning prevents unnecessary stress and legal battles for your loved ones.
- Protects Assets: An estate plan safeguards your assets from legal complications and unnecessary taxes.
- Provides Peace of Mind: Knowing your wishes are documented and will be respected provides peace of mind for you and your family.
References: Caring (2024) “2024 Wills and Estate Planning Study – Caring.com” and ElderLawAnswers (April 5th, 2023) “Don’t Wait Until You’re Sick to Create an Estate Plan”