The Estate Plan: It is not about you; it is about those who you leave behind.

By Rinaldo D. Crassa, CFP®, AIF®
Chief Operations Officer, Hendel Wealth Management Group & Financial Advisor, RJF

There are many responsibilities that come with being a good and reputable financial advisor or financial planner. One of those responsibilities, and in my opinion one of the most important, is talking to their clients about estate planning. More often than not, many people tend to dismiss or procrastinate the estate planning process because they feel that either they do not have enough to warrant a plan, there is nobody to remember them, or they have no beneficiaries.

That could not be further from the truth. There are three questions that I have heard frequently asked by clients, friends, and family members when it comes to estate planning:

Why is estate planning important?
When should I start planning?
Who should have an estate plan?

Estate planning is important for a variety of reasons. But there are three particular points that stand out to me, and to many others, as to why estate planning is important:

Protects Your Loved Ones: It ensures that your loved ones are taken care of financially and legally according to your wishes, including appointing guardians for minor children.
Provides Peace of Mind: Knowing that your affairs are in order can provide peace of mind for you and your family, reducing stress during difficult times.
Helps Avoid Family Disputes: Clearly outlining your wishes can help prevent conflicts and misunderstandings among family members after your passing.

As to the question of when to start the process, it is generally advisable to start estate planning as soon as you reach adulthood, especially when you begin acquiring assets or have dependents. Here are some specific life events that might prompt you to start estate planning:

Turning 18: Establishing basic documents like a durable power of attorney or a healthcare proxy can be useful, especially if you’re heading off to college or living independently.
Getting Married: Updating your estate plan to include your spouse and address joint assets and liabilities becomes important.
Having Children: Planning for guardianship and setting up trusts or other mechanisms to ensure your children’s financial security is crucial.
Acquiring Significant Assets: When you buy a home, start a business, or accumulate substantial savings or investments, it’s a good time to think about how you want these assets distributed.
Experiencing Major Life Changes: Divorce, the death of a loved one, or significant financial changes can all prompt a review or update of your estate plan.
Reaching Retirement Age: At this stage, reviewing and potentially adjusting your estate plan can help ensure it aligns with your current goals and circumstances.

Starting early allows you to make adjustments as your life and circumstances change, ensuring your plan remains relevant and effective.

Estate planning is important for everyone, not just married people with families. Here’s why single people should also consider having an estate plan:

Asset Distribution: Without a will or estate plan, state laws will determine how your assets are distributed, which might not align with your wishes.
Healthcare Decisions: An estate plan can include a healthcare proxy or living will to ensure your medical preferences are honored if you become incapacitated.
Financial Management: A durable power of attorney can designate someone to manage your finances if you’re unable to do so yourself.
Beneficiary Designations: You can specify who receives your assets, such as friends, charities, or other non-family members.
Avoiding Probate Issues: An estate plan can help streamline the transfer of your assets and reduce the complexity of the probate process.
Clarifying Wishes: It helps avoid potential disputes or confusion among relatives or friends by clearly stating your wishes.
Planning for Pets: If you have pets, you can include provisions for their care in your estate plan.

Having an estate plan ensures that your wishes are carried out and can provide peace of mind, regardless of your marital status or family situation. And above all remember this, it is never too late until it is. Call us today to help you review your estate plan.

Any opinions are those of Rinaldo Crassa and not necessarily those of Raymond James.