Many experts will tell you the best time to start thinking about financial planning of any kind is yesterday. The point is, it’s never really too early to start thinking about it.
With almost any planning, the sooner you start, the better your plan generally ends up being. This couldn’t be more true when it comes to financial situations. Things like financial or estate planning often occur over years and decades which makes it hard to make up for a lack of planning later in life.
Below, we’ll examine when you should start thinking about your estate as well as look at milestones to possibly reexamine your plan.
What Age Should I Think About My Estate?
Many experts agree that once you reach the legal age of an adult, you can start thinking about your estate.
Of course, the way you think about it may be much different than those who may be approaching retirement age, and that’s completely normal. But young people will often have assets and accounts, and plans for those things can be considered even at a young age.
For example, something like a savings account should have a designated person it can be transferred to if anything were to happen to the account holder. The same can be said for other properties or assets.
Milestones To Start Thinking About Your Estate
There are certain milestones in life that one should consider as a time to think about their estate. We already touched on one milestone, becoming a legal adult.
Below, we will look at other milestones to consider.
Buying A House
Buying a house is a major milestone and one that should definitely cause you to consider your estate. If you’ve recently purchased a home or other property and have not considered estate planning, this is the perfect time to begin.
Not having a plan can mean your home could end up involved in lengthy court proceedings if no legal plan is in place should something happen to you.
Marriage Or Divorce
Getting married or divorced is another time to seriously consider your estate and overall financial planning
Marriage generally involves the combining of income and assets in various ways. Should anything happen to either spouse or even both, it’s critical to have a plan for what happens to those assets so that there isn’t needless confusion and legal fights.
Depending on the circumstances, there may also be tax implications regarding the combining of assets, so a qualified financial expert should be consulted at this important milestone in your life.
This milestone is also of critical importance when it comes to estate planning. Proper estate planning can both be about the financial future of your children and also guardianship in the event something should happen to either parent.
Inheritance is often unexpected and comes at a time when people are grieving or otherwise not interested in financial matters. But suddenly being granted wealth means your estate planning may have to change to account for these events.
If you recently received an inheritance, it’s important to consult with a financial expert who can explain to you how you may need to adjust certain aspects of your estate to best accommodate your new wealth or assets.
ICCNV is an award-winning wealth management firm dedicated to helping their clients achieve financial security and peace of mind through sound investing and estate planning.