The Importance of Estate Planning with Turke & Steil LLP in Wisconsin
Estate planning is a crucial aspect of financial management that is often overlooked, especially by younger individuals. However, it is important to realize that estate planning is not just for the elderly or wealthy; it is a proactive measure that individuals of all ages and financial situations should consider. In this article, we will address the question, “At what age should I get an estate plan?” and explain why estate planning is vital for everyone, regardless of age.
Why Start Estate Planning Early?
Contrary to popular belief, estate planning is not exclusively for older adults. Younger people can also benefit significantly from it, at the very least, by protecting against incapacity using Powers of Attorney.
If you have assets, property, or dependents to protect, it is time to consider a more comprehensive estate plan, including a Living Trust and Will. Estate planning allows you to specify your wishes regarding the distribution of your assets and the care of your children in the event of your incapacitation or death. A basic plan can shield your family from the difficulties of Probate Court during your lifetime and after your passing. More advanced planning can provide various solutions, such as incentive-based inheritances, blended family protections, tax planning, and asset protection.
Factors to Consider When Deciding on Estate Planning
Property Ownership
If you own property, such as a home, condo, or even vacant land, having an estate plan ensures that your property is distributed according to your wishes. Including a Living Trust in your estate plan helps avoid the Probate Court system, saving your family time, money, and stress.
Children Under 18
If you have minor children, an estate plan allows you to designate a guardian to care for them in the event of your untimely death. It is crucial that you, not a judge, decide who will raise your children. Additionally, you can establish trusts to manage assets for your children until they reach a certain age or milestone. You can also include protective measures to safeguard inheritances against divorce or future probate, ensuring that the funds you leave behind are well-managed and used as intended.
Asset Threshold
Estates with significant assets are subject to probate when someone passes away without proper planning. By creating an estate plan with the appropriate tools, you can avoid the lengthy and costly probate process. Even if your current assets do not meet the probate threshold, planning for future assets like life insurance and retirement accounts can provide clarity and guidance for your loved ones during difficult times.
Benefits of Estate Planning for Everyone
Asset Protection
Estate planning allows you to protect your assets from creditors and lawsuits. Consulting a professional ensures that you choose the best asset protection strategy for your situation.
Healthcare Directives
You can outline your medical preferences and appoint a healthcare agent to make decisions on your behalf if you become incapacitated.
Financial Agents
Designate who will make financial decisions for you if you become incapacitated, keeping the courts out of these matters during challenging times for your family.
Tax Efficiency
Proper estate planning can minimize estate taxes and ensure that your assets are distributed efficiently. Even if estate taxes are not a concern, a good estate plan can help preserve capital gains, tax adjustments, and property taxes.
Peace of Mind
Having an estate plan in place alleviates the stress and uncertainty that often accompany unexpected life events.
Wrapping It Up
So, at what age should you get an estate plan? The simple answer is as soon as possible. Estate planning is not just for the elderly or the wealthy—it is for everyone. Whether you are a young adult starting your career or a retiree enjoying your golden years, estate planning provides invaluable protection and peace of mind. Do not wait until it is too late. Contact Turke & Steil LLP in Wisconsin today to start planning for your future.