When to Create an Estate Plan: Key Milestones to Consider

For many high earners and families, estate planning often comes as an afterthought. However, putting an estate plan in place early can provide peace of mind, protect your loved ones, and ensure your assets are distributed according to your wishes. Here are some key life milestones when to create an estate plan and when to start planning.

Key Life Milestones to Start Planning

1. Starting a Family

Having children or expanding your family is one of the most important reasons to consider estate planning. A well-crafted estate plan will name guardians for minor children, detail how assets should be managed for their benefit, and establish financial security if something were to happen to you or your spouse.

2. Marriage or Divorce

Marriage introduces new legal rights and responsibilities that affect your estate. Through a plan, you can specify how your assets should be handled in a way that aligns with your new family structure. Conversely, after a divorce, it’s crucial to update your estate plan to reflect any changes in beneficiary designations or asset distribution.

3. Reaching a High-Earning Milestone

Achieving a high level of income or accumulating substantial assets makes estate planning particularly valuable. Estate plans help mitigate potential tax burdens and establish trusts to protect and manage wealth for future generations. If you own real estate, business interests, or substantial investments, an estate plan can ensure these assets are effectively managed and passed on.

4. Owning a Business

If you are a business owner, estate planning becomes even more critical. Succession planning for your business helps you determine what will happen to the business if you are no longer there to manage it. You can also use the estate plan to appoint someone who understands your vision, which can protect your business and employees during a transition.

5. Entering Retirement

As you approach retirement age, estate planning shifts focus toward preserving assets for yourself and your heirs. A strong plan can address healthcare directives, power of attorney, and retirement accounts to ensure you and your family are prepared for this new phase of life.

6. Receiving an Inheritance

If you’ve recently received a substantial inheritance, it’s wise to incorporate it into your estate plan. Proper planning can reduce tax liabilities and secure the inherited assets for future generations, ensuring that they are protected and aligned with your legacy goals.

Why You Shouldn’t Delay Estate Planning

Estate planning isn’t only about what happens after you’re gone; it’s also a way to manage and protect your assets during your lifetime. By being proactive, you gain control over critical aspects of your financial legacy and ensure that loved ones are protected. Even if you’re young, single, or just beginning your career, setting up an initial plan can be beneficial and easily updated as your life changes.

Start Your Estate Plan Today

If you’ve experienced any of the above milestones—or anticipate doing so soon—it’s time to consider working with an estate planning attorney. Professional guidance can help you navigate the complexities of estate law, secure your family’s future, and bring peace of mind. Remember, estate planning is not a one-time event; it’s a process that evolves with you.

We’re here to evolve with you- wherever you are at in your journey. Contact us today and let’s get you set on the right path to protecting your loved ones.