When Is the Right Time for Estate Planning? (It’s Sooner Than You Think!)

Estate planning is the process of arranging a plan of how you want your estate to be handled during life and after death. Many people are not aware of the importance and benefits of having an estate plan, nor do they realize how soon they should set one up. According to a recent survey, only 26% of Americans have an estate plan in place.[1] Estate plans provide many benefits, including saving you money and securing your assets. Estate plans are for all people in every demographic, not just the rich and the elderly. (Check out this article: Debunking Common Myths About Estate Planning – Part I).

For more reasons why the benefits of estate plans outweigh the costs, see Is The Cost of Estate Planning Worth It?.

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How Old Should I Be When I Create My Estate Plan?

Many attorneys and financial advisors recommend starting an estate plan when you reach the age of majority (which is 18 years old in Texas). When you are a legal adult, you are responsible for your finances and healthcare (in some states).[2] That is, you are in charge of your financial, medical, and legal decisions. Therefore, if you are 18 or older and do not have an estate plan, you should consider setting up one immediately to ensure your assets are protected. So, when is the right time? Right now!

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How Often Should I Update My Estate Plan?

You should generally review your estate plan at least once every 1-2 years. Additionally, your estate plan should be updated on average every three to five years. If you experience a significant life event, your estate plan will most likely need updating. Life events include (but are not limited to) marriage, divorce, the birth of children, the addition of new homes/property, inheritance of assets, and even the birth of grandchildren.

For instance, when you have a child, it is important to nominate a guardian for him/her in the event anything were to happen to you. When you create a will, a guardian is named for your child (and should be updated every time you have another child). So, updating an estate plan can be more or less frequent, depending on what happens in your life.

For more information on when to update your estate plan, see When to Update Your Will and Estate Plan.

Who Should I Hire to Create MyEstate Plan?

It is strongly encouraged to have a trusted attorney prepare your estate plan, rather than doing it yourself online (which could result in errors and legal disputes). An experienced estate attorney at Provident Legal Counsel can answer your questions and provide all of the documentation you need to set up your estate plan.

For benefits of having an estate planner, see Six Benefits of Having an Estate Planner in Texas.

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Conclusion

The security and assurance that comes from having an estate plan in place is very beneficial; it can help protect your assets and provide peace of mind. Having an experienced attorney assist you in setting up your estate plan will make it a smooth process. And, it is important to set up your estate plan as soon as possible.

If you have any questions about estate planning or you would like to begin setting your plan up, contact Provident Legal Counsel today. Schedule a Consultation or call (214) 432-6100.

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[1] Michael S. Fischer, Only 26% Of Americans Have An Estate Plan, ThinkAdvisor (April 2024), available at https://www.thinkadvisor.com/2024/04/23/only-26-of-americans-have-an-estate-plan/.

[2] When Should You Start An Estate Plan (Hint: Probably Now), Trust & Will, available at https://trustandwill.com/learn/when-to-start-estate-planning.