New Year’s Resolution: Why NOW is the Right Time to Start Planning
While it’s impossible to predict the future, one thing is for certain – If we don’t plan for it, life can be difficult for our loved ones when we pass away. This is why creating an estate plan is something we should do sooner rather than later.
Many people hold off on creating an estate plan because they believe they don’t have a big enough estate or are simply too young to worry about things like wills and retirement. The truth is that everyone should have a plan, regardless of age or net worth.
Below are some reasons why NOW is the right time for you to start planning.
An Accident Could Happen Any Time
Chances are that you will live a long and fulfilled life, but accidents happen. What will happen to your minor children if you and their other parent die without a will? The court will appoint a guardian you may not approve of. Your assets will also be distributed according to Wisconsin’s laws of intestacy. By drawing up a last will and testament, you protect your children and control who receives your property as well as under what terms.
Your Family Relies on You Financially
If your family depends on you financially, what will happen to them if you pass away suddenly? Without an estate plan and some form of income replacement (e.g. life insurance), your spouse and/or children may find themselves in reduced circumstances. Making a plan now can help them enjoy financial security later.
You Have a Child With Special Needs
If you have a child with special needs, failure to plan for them could leave them ineligible for means-tested benefits like SSI or Medicaid and force them to use their inheritance to cover the costs of care. A special needs trust will leave them eligible for government benefits while trust assets cover additional expenses.
You Could Lose Capacity Unexpectedly
What if injury or illness leaves you incompetent and unable to manage your own affairs. If you haven’t appointed a power of attorney for finances or healthcare, a court will make that appointment for you and it may not be someone you would have chosen voluntarily.
You Want to Keep Assets in the Family
Do you have property that you want to keep within your own family, like an antique silver tea set or a home that’s been in your family for generations? Without an estate plan, your son or daughter’s spouse could inherit or receive those assets in a divorce when you prefer they go to your grandchildren. Setting up a trust can ensure that these heirlooms stay in the family.
Speak With an Estate Planning Attorney Today
With estate planning, sooner is better than later. At Elder Advisors Law, we will sit down with you, discuss your current family and financial situation, and help you create a plan that gives your loved ones security and you peace of mind. As your life changes, we will also update your plan to reflect those changes. The best place to start is to attend one of our workshops to learn about your options in estate planning.
