A quick look at statistics shows that many people are waiting to make their estate plans. After all, the majority of Americans do not have an estate plan yet, and one of the top reasons is that they claim they just have not gotten around to making one. It is not that they do not understand the importance of writing a will, but simply that they have not prioritized doing so.
There are two big reasons for this. In some cases, people do not think they have enough wealth to make an estate plan, so they wait until they are older and own more assets. The second reason is that people often think of estate planning as something to do at the end of their lives, so they may wait until retirement. But is this actually a good idea?
Updating your plan
It can be a major risk to put off making an estate plan. It is something that many people associate with the end of their lives, but the reality is that no one knows when that day is coming. Procrastinating on an estate plan could mean that someone passes away in an emergency or another unexpected situation, leaving their family with no plan at all. Someone who is waiting until retirement to write a will could pass away in a car accident in their 50s, for example.
What is often better is to make the estate plan early and then update it. As someone gains more assets, they can add them to the plan. If they receive a medical diagnosis later in life, they can consider what that means for their medical decisions, potentially using an advance directive or a power of attorney. An estate plan can always be adjusted, so there is no need to wait to draft one.
If you do not have an estate plan yet, but you are considering putting one together this year, be sure you know what legal steps to take.