Estate planning might seem like a task for the distant future, but in reality, it is a crucial step that should be undertaken sooner rather than later. If you’re a resident of Missouri, you may wonder when the right time is to create your estate plan. The straightforward answer is: as soon as possible. Here’s why creating an estate plan early on can benefit you and your loved ones, and when specific life events might prompt a reevaluation of your plan.
Contents
Benefits of Early Estate Planning
The experienced estate planning attorneys at TdD Attorneys at Law explain that creating your estate plan early on offers numerous benefits. It provides clear instructions for managing your affairs if you become incapacitated, minimizes potential conflicts among family members, and helps in preserving your assets for your heirs. Moreover, a well-prepared estate plan can reduce the burdens on your loved ones during an already difficult time by preventing legal complications and prolonged probate processes.
As Soon as You Become an Adult
Turning 18 marks the legal threshold of adulthood in Missouri. From this age, you are responsible for your own legal and financial matters. While estate planning might not be the first thing on a young adult’s mind, it’s essential. Even a basic plan that includes a durable power of attorney, a healthcare power of attorney, and a simple will can provide significant benefits. These documents ensure that your financial and medical decisions are made according to your wishes if you are unable to make them yourself.
Acquire Significant Assets
As you accumulate assets—whether it’s buying a home, building up savings, or acquiring other valuable property—it becomes increasingly important to have an estate plan. An estate plan will help manage and distribute these assets according to your wishes, prevent disputes among heirs, and potentially reduce estate taxes. It’s advisable to create or update your estate plan whenever you experience a significant increase in your assets.
Marriage
Marriage is a major life event that should prompt the creation or revision of an estate plan. Missouri law has specific provisions related to spousal inheritance, but having a well-crafted estate plan can ensure your spouse inherits exactly what you intend. This plan can include joint ownership of property, beneficiary designations, and provisions for the management and distribution of your assets.
Children
Having children is a key milestone that necessitates planning for their future. Your estate plan should include provisions for their guardianship and financial support if something happens to you. This includes designating a guardian for your minor children and setting up trusts to manage their inheritance responsibly. Regular updates to your estate plan are crucial as your family grows and your children’s needs change.
Upon Experiencing Major Life Changes
Significant life changes such as divorce, remarriage, the birth of additional children, or the death of a beneficiary should prompt an immediate review and update of your estate plan. These changes can have substantial implications for how your estate should be managed and distributed. Keeping your plan current ensures it accurately reflects your current wishes and circumstances.
Approaching Retirement
As you near retirement, revisiting your estate plan becomes even more important. You’ll want to ensure that your financial assets are managed efficiently and are aligned with your retirement plans. Additionally, this is a good time to look into long-term care planning and ensure your healthcare directives are up to date. Addressing these details can provide peace of mind as you transition into this new phase of life.
In Response to Changes in Laws
Estate planning laws can change over time. Significant changes in state or federal laws regarding estate taxes, probate, or trust administration can impact your existing estate plan. It’s wise to periodically review your plan with an estate planning attorney to ensure it remains compliant and takes advantage of current laws.
The best time to create your estate plan in Missouri is now. No matter your age or financial situation, having a thoughtful estate plan can safeguard your interests and ensure your legacy is managed according to your wishes. Regularly updating your plan to reflect life changes and staying informed about relevant laws will help maintain its effectiveness and relevance. By addressing this important task early and revising it as necessary, you can provide peace of mind for yourself and security for your loved ones.
