Do I need an estate plan? How old do I have to be to start thinking about an estate plan?

Entering the Estate Planning world can be overwhelming at times. Below I have outlined some ways to help you determine when you should be planning your estate.

1. Asset Ownership: If you own assets such as real estate, investments, retirement accounts, or valuable personal property, an estate plan can help ensure these assets are distributed according to your wishes after your passing.
2. Family Considerations: If you have dependents, such as children or aging parents, an estate plan can include provisions for their care and financial support in the event of your incapacity or death.
3. Healthcare Preferences: An estate plan can include documents like a healthcare directive or living will, which outline your preferences for medical treatment and end-of-life care if you become unable to make decisions for yourself.
4. Avoiding Probate: Without an estate plan, your assets may be subject to probate, a court-supervised process that can be costly, time-consuming, and public. An estate plan can help streamline the distribution of your assets and minimize probate-related expenses.
5. Minimizing Taxes: Depending on the size of your estate, an estate plan can include strategies to minimize estate taxes and maximize the inheritance received by your beneficiaries.

How Old Do I Have to Be to Start Thinking About an Estate Plan?

1. Adult Life Milestones: It’s advisable to start thinking about an estate plan once you reach certain adult life milestones, such as getting married, having children, or acquiring significant assets.
2. Financial Independence: If you have assets or income of your own, regardless of your age, it’s a good time to consider an estate plan to ensure your wishes are carried out in the event of your death or incapacity.
3. Health Concerns: If you have specific healthcare preferences or concerns about incapacity, such as a chronic illness or disability, it’s important to create advance directives and appoint a healthcare agent in your estate plan.
4. Legal Age of Majority: In most jurisdictions, individuals reach the legal age of majority (usually 18 years old), at which point they are legally able to create a will and other estate planning documents.
5. Family Dynamics: Even if you’re young, if you have dependents or specific wishes for the distribution of your assets, it’s never too early to start thinking about an estate plan to protect your loved ones and ensure your wishes are honored.

In summary, the need for an estate plan and the appropriate age to start thinking about it varies from person to person. You should consider creating an estate plan once you have assets, dependents or specific wishes for the distribution of your estate. Consulting with an estate planning attorney (me!) can help you navigate the process and create a plan that meets your unique needs and circumstances.