What is a good age to have an estate plan?

An estate plan involves planning for both incapacity and death — unfortunately those are both things that we can’t predict in advance. In California, we want to be sure that everyone has some form of a plan as soon as they are adults (aka 18 years old). But here is a summary of all the milestones that are worth considering CREATING or UPDATING an estate plan if you haven’t already.

1. Becoming an adult: As soon are 18 years old, you are legally responsible for making your own healthcare and financial decisions. Your parents can’t jump in for you, even if you are incapacitated and can’t make the decisions yourself. At this point, it's wise to consider creating basic estate planning documents such as an advanced healthcare directive (also called a healthcare power of attorney) and a durable power of attorney (also called a financial power of attorney) to designate someone to make decisions on your behalf if you become incapacitated.

2. Accumulating Assets: Whether it's through employment, investments, or inheritance, as you accumulate assets, it becomes increasingly important to have a plan in place for how those assets will be managed and distributed in the event of your incapacity or death. A trust expresses your wishes regarding property distribution and ensures that your estate avoids the lengthy and costly probate process.

3. Marriage or Domestic Partnership: Getting married or entering into a domestic partnership can have significant legal and financial implications. You should have an estate plan and/or review and update your estate plan to reflect your new marital status, designate your spouse or partner as a beneficiary, and ensure that your assets are distributed according to your wishes. California also requires that spouses have equal access to community property, which implicates certain estate planning documents.

4. Having Children: The birth or adoption of a child is a life-changing event that often prompts individuals to create or update their estate plans. Parents want to ensure that their children will be cared for by trusted individuals if something were to happen to them. This may involve designating guardianship for minor children and establishing trusts to provide for their financial needs.

5. Changes in Health: If you or a loved one experience a decline in health or receive a serious diagnosis, it's crucial to address estate planning matters promptly. This may include updating healthcare directives, appointing healthcare agents, and making arrangements for long-term care.

6. Retirement Planning: As you approach retirement, estate planning becomes even more critical. You may want to review your retirement accounts, pension plans, and other assets to ensure they are structured in a way that aligns with your estate planning goals.

Estate planning is not just for the wealthy or the elderly—it's a process that everyone should undertake to protect themselves, their loved ones, and their assets. Whether you're a young adult just starting out in life or a retiree, it's never too early or too late to create an estate plan in California. Contact me for a a complimentary consultation to discuss your estate planning goals.