When To Consider Estate Planning
Everyone has heard of leaving a will behind after you have passed on, which details which family members or friends will receive your possessions and inheritance. An estate plan works very similarly, but it goes into more detail than a will.
So how do you know when it’s the best time to consider estate planning? Nobody knows what the future holds, and anything can happen at any time. If you live in New York and are wondering when to begin estate planning, read on! We’re going to dive into everything you need to know about when to consider estate planning.
What Is Estate Planning?
As we have already established, estate planning differs from your typical will. While they both essentially accomplish the same thing, estate planning goes into greater detail than a will.
Estate planning is the process of detailing exactly who will receive each of your assets when you pass on, including anything of monetary value. When one enacts an estate plan, they usually work with estate planning attorneys to sort out all the details. Attorneys also work to minimize the taxes due on your assets and allow as much wealth as possible to be passed to your beneficiaries.
Estate planning will usually encompass a number of details dictating what is passed on and to whom. This includes wills, trusts, beneficiary designations, powers of appointment, property ownership, gifts, and powers of attorney. Such a thorough process will ensure that your wealth and assets are passed on to exactly the right people.
Estate planning lawyers know the ins and outs of the laws that may affect the process. They can ensure that your family and loved ones are taken care of based on your wishes.
What Is Considered During Estate Planning?
During the process, your estate planning attorneys will address potential situations and the outcomes with you. This will help legal authorities know where your assets should go, even if your mind or body becomes compromised. Some of these considerations include a loss of capacity, care for minor children, death without a will, blended families, financial security, business ownership, and probate.
For example, the first consideration is a potential loss of capacity. How would decisions be made regarding your wealth should your health become compromised? This relates to certain mental conditions like Alzheimer’s, for example.
The rest of the considerations should be fairly self-explanatory. They will simply put measures in place to guard against certain possibilities that would not allow you to decide where your wealth would go.
When Should You Start Estate Planning?
Numerous factors may contribute to an individual’s decision to start their estate planning process, and everyone may have a different reason for considering the matter.
Here are a few situations or indicators that might prompt you to start the process:
- Failing health
- Diagnosis of a potentially life-threatening disease or condition
- Increased age
- Divorce or anticipated divorce
- The death of a family member
- Acquisition of a valuable asset or a large amount of wealth
While any of these common situations might prompt you to take action, the truth is that it is never too early to start the estate planning process. There are no rules around your age or accomplishments in order to start estate planning. Establishing a plan will make things easier for your loved ones and give you peace of mind knowing your wishes were followed.
The estate planning lawyers of Levin Law Group want to make sure that you and your family understand every part of the process. We hope you will trust us in helping you with such a big decision in your life. We have several offices throughout New York and New Jersey, and we would love to see you! Contact us to set up a free consultation today.