Setting a Foundation Early: Young Adulthood
- Scenario: You’re starting to gain independence—perhaps you’re going off to college, starting your first job, or even moving out on your own. It’s an exciting time filled with new responsibilities and decisions.
- Action Items:
- Establish Advanced Directives: This includes a healthcare proxy and a living will. These documents ensure your medical wishes are followed if you’re unable to communicate them.
- Designate Beneficiaries: Make sure all your financial accounts, like savings and retirement accounts, have up-to-date beneficiaries or Payable on Death (POD) designations.
- Things to Consider:
- Do you have someone you trust to make decisions on your behalf if you’re unable?
- Have you communicated your wishes regarding medical treatment and financial decisions?
Meet Alex, a 19-year-old who just started college. Alex didn’t think estate planning was necessary at such a young age until a close friend had a medical emergency. Inspired to be prepared, Alex set up a healthcare proxy and made sure their savings account had a POD designation to their parents.
Protecting Your Shared Future: Getting Married
- Scenario: You’ve found your life partner and are excited to build a future together. Marriage brings joy but also a new layer of complexity to financial and estate planning.
- Action Items:
- Update Beneficiary Designations: Ensure all your financial accounts and insurance policies list your spouse as a beneficiary.
- Review and Update Your Will: Consider creating a new will that reflects your marriage, outlining how you’d like your assets to be distributed.
- Consider a Trust: If you have significant assets or property, setting up a trust can provide clear directives and avoid probate.
- Things to Consider:
- Do both you and your spouse have an estate plan, or should you create a joint one?
- Are there any pre-marriage assets that you wish to keep separate?
Emily and Jordan just got married. They were busy planning their honeymoon and setting up their new home but realized they hadn’t updated their beneficiary information. They sat down with a lawyer to ensure all their accounts reflected their new status and created a will together to safeguard their future.
Growing Together: Starting a Family
- Scenario: Your family is expanding! Whether it’s your first child or an addition to the family, this stage is filled with love and new responsibilities.
- Action Items:
- Nominate Guardians: Identify and legally document temporary and long-term guardians for your children in case something happens to you.
- Set Up or Update Your Trust: Ensure your assets are managed and distributed according to your wishes for your children’s future.
- Reevaluate Life Insurance: Make sure you have adequate life insurance to support your family’s needs if you’re not around.
- Things to Consider:
- Who would you trust to raise your children and manage their finances?
- Do you have enough financial security for your children’s upbringing and education?
Carlos and Maria just welcomed their second child. After talking with friends, they realized the importance of appointing a guardian for their kids. They took action, set up a trust to manage their assets, and updated their will to nominate Maria’s sister as the guardian for their children.
Embracing Change: The Empty Nest
- Scenario: Your children have grown and moved out, and you’re entering a new phase of life. It’s time to focus on your own future, including retirement and legacy planning.
- Action Items:
- Review Your Estate Plan: With your kids grown, your estate planning needs may change. Update your will and trusts to reflect these changes.
- Consider Liquidity: As you approach retirement, you may want more liquid assets. This could involve selling a property or reevaluating your investment strategies.
- Plan for Long-Term Care: Look into options for long-term care insurance or update your estate plan to account for potential healthcare needs.
- Things to Consider:
- Are your current investments aligned with your retirement goals?
- Have you planned for potential medical expenses or care needs as you age?
Sarah and Michael are recent empty nesters. They realized they needed to update their estate plan to reflect their new life stage. They worked with an estate planner to adjust their assets to be more liquid and set up plans for long-term care, ensuring they have peace of mind for whatever the future holds.
Golden Years: Retirement and Legacy Planning
- Scenario: You’ve retired and are enjoying your golden years. Now is the time to ensure your legacy is secure for future generations.
- Action Items:
- Finalize Your Estate Plan: Make sure all documents are up-to-date, including wills, trusts, and powers of attorney.
- Discuss Your Wishes with Family: Ensure your family understands your plans and the reasons behind them to avoid future disputes.
- Organize Important Documents: Keep all your estate planning documents in a secure, accessible location for your executor and family.
- Things to Consider:
- Have you clearly communicated your end-of-life wishes and legacy goals?
- Are there any charitable causes or organizations you’d like to support through your estate?
John is 70 and enjoying his retirement. He recently met with his children to go over his estate plan and shared his wishes for his assets and healthcare. By organizing everything and making sure his family was informed, John felt at ease knowing his legacy would be protected and his wishes honored.
Schedule a consultation with us to discuss your specific circumstances and how we can help you get your Estate Planning Documents in order.
