Many people procrastinate when it comes to making an estate plan. If you ask someone why they do not have a will, there is a good chance they will say they have not gotten around to it yet or that they are waiting until they are older.
However, this can be a problematic approach. Technically, people can usually create an estate plan at 18, but many wait until their 60s or 70s. Below are three reasons not to put off estate planning.
Life is unpredictable
First and foremost, life is unpredictable, and no one knows exactly when their time will come. Someone who believes they can wait until their late 60s to draft an estate plan could pass away unexpectedly, such as in a car accident in their 40s. It is often better to create a plan early, which can then be updated as circumstances change.
Lack of testamentary capacity
Putting off estate planning also increases the risk of cognitive decline. This can raise questions about testamentary capacity. If an older person creates an estate plan and beneficiaries later claim that they lacked the mental capacity to do so, it can lead to serious estate disputes after their passing.
Medical incapacitation
Finally, estate planning can be important for medical reasons. If someone becomes incapacitated, documents such as a living will or a medical power of attorney can ensure they receive the type of care they want. However, these documents must be prepared in advance in order to be effective.
Are you thinking about drafting an estate plan this year? Be sure you understand exactly what legal steps you will need to take.