Should you really wait to make an estate plan?

On Behalf of | Dec 29, 2023 | Estate Administration

When you ask someone if they’ve made an estate plan, they may tell you that they haven’t done it yet. After all, most people do not have a plan right now.

Many people give excuses for why they’re putting it off or procrastinating. Let’s look at two common reasons and why they do not hold up to scrutiny – showing that estate planning is needed much earlier in life.

Waiting for more assets

To start with, some people are waiting until they retire. They think they’ll have more assets and that there is no point in making an estate plan until they do.

But there are a lot of issues with this perspective. First off, that person doesn’t know when they’ll pass away, so there’s no way to tell how long they can wait. Second, estate planning isn’t only for the wealthy. Maybe someone doesn’t have major investment accounts, but they still have personal bank accounts, tangible assets and items with sentimental value to pass to the next generation. An estate plan can always be updated later if more assets are acquired.

Only considering money

Another issue is when people just think about finances. They forget about the other benefits of estate planning.

For instance, someone who just had their first child may want to choose a guardian to care for their child if they pass away, along with putting assets into a trust to hold for that child while they’re still a minor. Someone who has been diagnosed with a serious disease may want to use a power of attorney to choose an agent to make medical decisions if they’re incapacitated.

Making a plan

As you can see, putting off estate planning is not wise. If you would like to make your plan soon, be sure you carefully consider the steps to take to do so.