When Is The Right Time To Create An Estate Plan?

It can be challenging to think about your death when you’re busy living your life to the fullest. You may not ever want to think of a time when you’re not around to enjoy what you have now, but creating an estate plan can be crucial for ensuring your assets are distributed to the right people upon your death, and that your loved ones are taken care of. While it may feel like there’s never a right time to begin, the following events could be when you decide to kickstart your estate planning. 

You Start Building Up Wealth

You may decide to contact reputable Title 14 attorneys when you begin building up wealth. You might have a savings account with considerably more than you need for a funeral, retirement fund, or insurance policy  that you have wishes for. 

When your savings start to reach significant amounts and could make a difference in your loved ones’ lives after your costs have been covered, starting the estate planning process may be worth your while. You can begin the process by thinking about who you would like to receive your wealth before contacting an attorney to make your wishes legally binding. 

You’ve Married

Marriage is about more than just love; it’s about combining assets in everyday life and in the eyes of the law, which can be a game-changer regarding your estate plan. 

Once you’re married, discuss how your assets will be divided upon both of your deaths or in the event of one spouse’s death. If you already have an estate plan, a wedding can be the perfect opportunity to update it to consider the latest life changes. 

You’ve Purchased Properties

Creating an estate plan can be crucial as soon as you sign on the dotted line for ownership of a new property. You now own something worth potentially hundreds of thousands of dollars, with room to increase in value as the years pass, and you may wish for this to go to a specific person once you pass. 

Many banks encourage new property purchasers to create a will as soon as they take on a mortgage, along with mortgage protection to cover mortgage costs should you pass before you’ve paid for it in full. Once you have an estate plan, you should consider updating it if you decide to purchase a second property or additional properties in the future. 

You’ve Welcomed A Child Into The World

The birth of a child is a magical occasion. As their parent, you may wish to do everything in your power to look after them, and this can continue long after you’ve passed. When a child is born, create an estate plan that outlines provisions for them. You may wish for them to receive all your wealth, property, or specific family heirlooms. While they’re young, talk to loved ones about who would take over their care in the event of your untimely death. 

When you have created an estate plan for your first child, remember to update it for subsequent children or other new family members you wish to take financial care of, such as grandchildren. 

You Got Divorced

It’s more common to get married than divorced, but that doesn’t mean you won’t find yourself in the situation of having to alter your entire life to account for no longer having someone in your life. 

When assets and wealth are divided after a divorce, it can be the perfect opportunity to create or update your estate plan. Generally, the most critical changes to an existing estate plan can involve your beneficiary designations, executor, properties, and guardians for your children. 

Laws surrounding the dissolution or annulment of marriage can differ from one state to the next, so it can be worth contacting an attorney in this line of work to find out the steps you need to take. 

You’ve Inherited Assets Or Money

Inheriting significant assets like property and money from a loved one who has passed can be bittersweet. You may be so wrapped up in your grief that you don’t know what to do with your newfound wealth or think you don’t need to do anything at all. 

However, just as your family member or friend made provisions in their estate for you, you may like to do the same for someone else. Create an estate plan that outlines where you wish that wealth to go, should you pass while still owning it. 

It can seem like there’s never a right time to start thinking about your death and where you wish for your assets to go. However, these life events above could be the motivation you need to put a plan into place for your peace of mind and your loved ones’ futures.