As we go through life, our needs and goals change. From the perspective of an experienced estate planning attorney, I see estate planning in much the same way. A twenty-something will not likely need the same kind of estate plan as a fifty-something. I thought it might be helpful to create a timeline of crucial estate planning needs, through the “ages”. It might be a good benchmark for you based on your age and current plan. Ideally, as you go through the ages, your estate plan will be updated regularly to ensure it continues to meet your needs. (Note: I offer all my clients a complimentary review of estate plans every three years to ensure their plan is current.)
Age 20-30
Most are just starting their career and likely don’t have much in the way of assets yet, a vehicle and, if you’re lucky, your first home. Single, married, or cohabitating, here are some things to consider:
- A basic will, especially if you are single or in a domestic partnership, will ensure that assets are distributed as you would like.
- It’s a good idea to have a health care directive in the event you’re in an accident and are unable to make medical decisions for yourself. Make sure you have appointed someone you trust to do that for you.
Age 30-40
You’re likely well on your way in your career and may be in a marriage or domestic relationship with young children.
- It is mission-critical to have established legal guardianships for your children. If anything happens to both parents, you want to make sure you’ve done everything to ensure their future. That also includes life insurance, a trust, and an updated.
Something to note: by law, minor children cannot inherit your assets. If you fail to create a trust and appoint a trustee to manage assets for your minor children, the probate courts will appoint a guardian for these assets, and the person the court chooses may not be the same person you would have chosen.
- If you haven’t already executed a financial power of attorney, now is a good time to do that.
Age 40-50
This is often the age when blended families are common. Perhaps you have children from a previous marriage … and your current spouse has children from an earlier marriage. Or only one of you has children from a previous marriage, but you have a child now with your current spouse. There are a variety of scenarios that fall into the “blended family” category.
- Things to consider during this “age” include updating wills, prenuptial agreements, and trusts. Up-to-date guardianship documents are also a must.
- Healthcare directives and all beneficiaries should be updated.
Age 50-60
For many people, this might be your peak earnings years, perhaps with increased family responsibilities, maybe even caring for your aging parents. You find yourself the heir to a significant inheritance at this stage.
- To be clear, a trust can help your heirs avoid probate, so at this stage, you have likely accumulated significant assets, perhaps a vacation home. If you haven’t already established a trust, now is the time to consider doing so.
Age 60 +
As you retire and are on a fixed income, it’s time to update your plan. Things to consider:
- Confirm all your assets are accounted for in your plan and correctly titled.
- If you have adult children with health or mental disabilities … does your plan include them, or do changes need to be made?
- Once again, and routinely, confirm your beneficiaries are up to date.
- It’s time to review your health care directive and financial power of attorney. If you haven’t yet executed a living will, now is the time to do so.
- Last but not least, if you have yet to make plans for long-term care, are you thinking about it?
This post is not intended to be a comprehensive list including everything you might need at every age, just a general overview to guide you based on where you might be at this point in your life. The important thing is to start planning now. If you don’t have a plan, now is actually the ideal time to begin. I’d be happy to help you and ensure the plan we develop together is a good fit for where you are now and an excellent foundation for future updates. The goal is always to protect your hard-earned assets and your loved ones, so whatever it takes, let’s do it together. Call me at 513-399-7526 to schedule a consultation, or visit my website, www.davidlefton.com, for more information.