When you ask people if they have made an estate plan, they sometimes tell you that they simply have not done it yet, even though they are going to. In some cases, people will say that they want to earn more first. They do not think that their net worth is high enough for an estate plan to be useful, and they know they are likely to have more assets later in their life.
But do you actually have to wait until later to make that plan?
You do not. You could make the plan today and then simply update it as your assets change. In many ways, it is best to get the plan in place as early as you can, just in case of an unexpected passing, and then make critical updates as you gain more assets, such as real estate, savings, investments or an inheritance from your own parents.
Estate planning at any asset level
Another thing to consider is that you do not necessarily have to own a lot of assets to make an estate plan in the first place. There are many different benefits for people at any asset level.
For example, young parents may not have much in the way of savings, but they want to set up a guardianship for their child or put assets in a trust in case they pass away early. Additionally, people may want to make their own medical decisions in advance so that their doctors will know what type of care they want if they are incapacitated in the future. An estate plan can be used to set up advanced directives or a medical power of attorney to accomplish these goals, no matter how much money someone has. It is not just about dividing assets.
Exactly what you want to include in your estate plan depends on your unique situation, so just be sure you know what legal options you have and when to get the process started.