You might think that you’re too young to think about estate planning, but even individuals in their 20s and 30s can benefit from planning for the future.

At Womack Investment Advisers, we specialize in providing quality advice and support, helping you establish a plan for your individual needs and circumstances at any stage of life.

When Should You Begin Estate Planning? 

For many people, estate planning might only become a consideration with retirement planning, but there is no wrong age to begin. (1) Anyone who is no longer a minor can establish an estate plan.

The truth is, individuals at every stage of life can benefit from having an estate plan. Admittedly, the strategy for someone who is newly graduated from college will look different than a plan that’s been created for a retiree.

~Forbes.com

Your estate plan will change and grow with you. At a younger age before marriage and children, it’s not uncommon for an estate plan to be self-drafted, however, once beneficiaries come into the picture, it becomes more important to list your wishes clearly.

Some people may include their beneficiaries not as individual people, but as charities or organizations for issues that they care deeply about, which an estate plan can help you communicate to the state.

A professional adviser, like those at Womack Advisers, can help you establish an estate plan that is right for you, no matter your age, how many assets you have, or how you want your beneficiaries listed. 

Why Is It Important to Start Estate Planning Early? 

In the event of your incapacitation or death, an estate plan can help you establish who receives what assets. This estate plan is in addition to a will, and strictly covers your assets and liabilities, rather than an overview of desires.

No one knows what will happen in the future, which is why an estate plan can help even if you’re hardly at the age to start considering retirement. Once an estate plan is established, it is not forgotten. This living document should be frequently updated to reflect your desires as your assets and list of beneficiaries grows.

Can You Have an Estate Plan If You’re Not Rich? 

You don’t need an estate to start thinking about what happens to your assets after death, and how they are distributed among your surviving family members.

An estate plan doesn’t just mean a literal estate, but all the assets of value you own, such as a house, savings account balance, or investment portfolio.

Though the plan itself might look different based on your age and needs, an estate plan is an essential part of your will, determining what happens with your possessions.

A trustworthy financial advisor, like those at Womack Advisers, can help you establish a plan that suits your unique needs.

Can You Do Your Own Estate Planning? 

Yes, you can do you own estate planning, though it helps to have the assistance of a legal professional to file the document once you are done. These are most often done as a package deal with a living will, which can be successful if you have very limited, clear instructions for what you want to happen with your assets.

Many people choose not to do their own estate planning, however, and hire a professional to help outline their thoughts and clearly lay out their directives as an investment in the future. Any amount of confusion can make the estate plan subject to interpretation, and it is essential to ensure the plan doesn’t interfere or conflict with any other wills or trusts that are already set up.

At Womack Investment Advisers, we recommend reviewing your estate plan at least every 5 years to ensure it still most accurately reflects your desires.

Don’t Forget to Update Your Plan 

Updating your estate plan is just as important as creating one in the first place. There are many reasons why you might want to update your plan, and at Womack Advisers, we recommend reviewing your estate plan every 5 years to ensure it still most accurately reflects your desires.

Other times when you may need to update your will include:

1.     Tax Status Changes

Tax laws are always changing, which may impact how your assets are distributed in your estate plan. For example, if a new law changes how your IRA is paid out, or if you move from one tax status to another, it helps to review your estate plan with a professional.

2.     Assets and Liabilities Change

If you lose or gain any assets such as a property or investment fund, or liabilities such as a large loan or medical debt, you will need to update your estate plan to accurately reflect these changes, as they can change how these are distributed among your beneficiaries.

3.     Significant Family Changes

A birth, death, or divorce are the most common reasons why you may need to re-assess your estate plan.

If the event comes with a loss of, or inheritance of assets, then you may need to adjust the assets listed in your estate plan. If the event is the loss or receival of another person, you may need to update your beneficiaries listed.

4.     Change in Residence

If you change your place of residence – specifically from one state to another, or from one country to another, you may need to look at your estate plan again.

If your estate plan includes assets such as your place of residence, it may require updating as well, to reflect these changes.

Let Us Help You Secure Your Future 

Estate planning can be a confusing task with a lot of difficult decisions and moving parts. Womack Advisers is here to help you when you don’t know where to turn. Our experienced estate planning advisers can help you translate your unique needs and desires into an actionable, legal document.

An estate plan is the only way to ensure that your assets are used how you want them to once you no longer need them. You don’t need to be wealthy to establish directives for your valuables, and it’s never too late to start planning.

Take the future into your own hands today with Womack Advisers, serving the community across the Edmond OK area and beyond.

References:

1.     Forbes.com, An Estate Plan For Every Stage Of Life, https://www.forbes.com/sites/riankadorsainvil/2020/01/30/an-estate-plan-for-every-stage-of-life/?sh=267608c65517

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