Whether you are starting your career or an established professional, you must understand that certain signs let you know that it is time to create an estate plan. Doing so puts you in control of what happens to your assets if you become incapacitated or die.
You want to be in charge and not the state when it comes to disbursing your money, real estate and personal property. But when do you need to get the ball rolling on creating an estate plan? It is a good idea to put together a plan as soon as you think you need one.
Financial gains, dangerous jobs and parenthood
Many signs exist that clearly let you know that is time to create a will or trust. They may include:
- The accumulation of financial and other assets: This may include bank savings accounts, money market accounts as well as starting a small business.
- Inheritance of significant assets: Say one of your parents or other relatives dies and leaves you a substantial amount of money. You want to make sure these assets get into the hands of your heirs or beneficiaries if you die.
- Working in a dangerous job: Certain jobs place a person’s life at more risk than others. They may include positions in the following industries such as security, transportation, construction, law enforcement, health care and agriculture.
- Purchase of a home: This represents a significant asset. Addressing this in your will should help you avoid probate.
- Marriage: You have made a life together and combined assets with your spouse. Make sure to have regular discussions with your spouse if one of you dies or becomes incapacitated.
- Becoming a parent: You likely want your children to inherit your assets. Also, it is important to name a legal guardian to ensure he or she cares for your children and that assets are set aside for that person.
All of these represent critical reasons to think about, research and create an estate plan.
Regularly review estate plan, too
Also, do not forget that your estate plan should get a regular review, especially when life events surface. A life event may be any of the above-mentioned matters as well as divorce, remarriage, the birth of a grandchild, moving to another state and the death of beneficiaries or the executor. Getting that estate plan in order provides you with significant peace of mind.