The Importance Of Estate Planning Through The Years

November 22, 2012

The importance of estate planning through the years

Thinking about what happens after death, disability or other tragedies is usually the last thing that a person wants to think about. However, if you do not plan for these events, you may leave your family or loved ones to decide such tough issues when they are in a stressful position. While estate planning is not the most appetizing thought, taking the time to form a cohesive plan can save your family and loved ones a lot of time in the future, regardless of which stage of life you are in.

Your single years

If you are single and without dependents, basic estate planningcan ease the burden on your parents if something happens to you. If you give them (or another person you trust) an advance health care directive, this will allow them to make your medical care decisions should you become disabled, incapacitated or unable to act for yourself.

For your financial affairs, you might consider setting up a joint bank account with people you want to leave your assets to, provided that you trust them. Should you die unexpectedly, this will allow the joint account holder to receive your property without having to go through the formalities of probate.

Coupledom

If you marry, many legal protections are automatic without having to do anything. However, as the laws of each state are different, it is always a good idea to put your wishes for your estate in writing. If you are unmarried, however, drafting a will, trust and advance health care directive is essential, as many state laws will not recognize the right of your significant other to make healthcare decisions on your behalf or inherit your estate.

Having children

If you have children, other estate planning modifications may be required. First, it is important to update your will to reflect your choice of guardian that will be responsible for your children, should something happen to you. Secondly, you might need to update your will to include your children as heirs to your estate.

Once your children grow into adulthood and can hold property, you need to consider how you would like to leave your estate to your children. Some parents prefer to leave their estates to the children as a lump sum, while others prefer to set up trusts to pay out certain amounts to their children at different points in their lives.

An attorney can help

As you enter each stage of life, it is important to consider how each stage will affect your end-of-life, healthcare and financial wishes. As the answer to this question relies heavily on your individual situation and state of residence, contact an experienced estate planning attorney. An attorney can review your circumstances, advise you on potential legal pitfalls and work to ensure that your wishes are carried out as you intended.

Article provided by Riefberg, Smart, Donohue & NeJame, P.C.
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