If you’re an adult in New York, you may wonder when you should take the necessary step of planning your estate. When you make an estate plan, you are being responsible and ensuring that your property and assets go to the people you want to get them after you pass away. You can plan your estate even while you’re young. It’s a good idea to do it sooner rather than later to ensure that your wishes are met.
When is it necessary to plan your estate?
According to financial advisors, estate planning is something you should do as soon as you become a legal adult. In other words, once you reach 18 years old, you should take those important steps. Depending on your situation, you may already be responsible for your own finances and health care. After creating your estate plan, you should continue to update it at least every three to five years.
If you question the logic of estate planning while you’re still young, there are certain factors to consider. The following are indicators that you should begin planning your estate:
- Savings account: Once you start saving money in a savings account, you must decide who will get your money once you’re gone.
- Owning a home and other property: Owning a home or property of your own means you will want to choose someone who will inherit it in the event of your death. The estate planning process can also help your property avoid going through probate.
- Marriage: When you get married, you’ll have to combine your assets. Planning for who gets them if you or your spouse dies is important.
- Travel: You should have an estate plan and update it whenever you travel, especially if you’re gone for long periods.
- First child: Once you have your first child, you should create your estate plan. You will want to plan for guardianship in the event of your untimely death and ensure that your child inherits your finances.
- Inheritance: If you gain an inheritance, you should plan for what happens to the money or assets.
- Divorce: If you go through a divorce, you will have to update the estate plan that you created while your marriage was still intact.
When should you create a will?
You should consider creating a will as you begin estate planning. Too many people die without having a will, which leaves their loved ones hanging and scrambling. If you have a will, you can prevent all of the confusion and difficulty that comes without having one. You can designate a power of attorney and health care proxy and determine how your assets will be distributed.
When you have an estate plan in place, it keeps things protected so that your property and assets are handled in the way you want. You can also ensure that your heirs will get what you want them to receive after you’re gone.