Reasons to Start Your Washington DC Estate Plan Early
There’s a common misconception that estate planning isn’t something to think about until you are nearing retirement age, or until you have amassed a large asset portfolio. That couldn’t be further from the truth. While you don’t want to think about something tragic happening, what if you were in a horrible car accident in your 20s and leave behind a family?
The earlier you start developing a financial plan for your future, the more likely you are to succeed. It will force you to take a look at your own spending habits and financial situation, and it looks at a variety of important topics like:
- Family planning
- Purchasing a home
- Children’s education
- Other big purchases
- How to budget
To learn more about estate planning options, it’s helpful to speak with a knowledgeable Washington DC estate planning attorney.
Events That Might Trigger Financial Planning
There are some things that can trigger someone to start thinking about estate planning. Some of these can include:
- Buying a home
- Graduating college
- Getting married
- Changing careers or starting a new job
- Having children
- Adopting a child
- Starting a business
Benefits of Starting Estate Planning Early
There are a number of benefits to starting estate planning early on. Some of these include, but are not limited to:
- When you start saving early on, you don’t need as much money to start with because your interest will compound. This means you’ll end up earning more money down the line.
- Starting early can help you avoid unnecessary debts, as it may help keep you from living beyond your means. When you take on too much debt, you can find yourself trapped in a seemingly endless cycle.
- This helps set a good example for your children. If you have children, you can set a good example by showing that you’re organized with your finances. If you appear anxious or they see you are disorganized, they are likely to grow up emulating your behaviors.
- When you start financial planning early on, it may open more doors for you. There is less pressure about saving for retirement, and you’ll have a safety net in place in case you want to start a new business, need to change careers, etc.
What to Address in Your Estate Plan
You need to realize that estate planning is more than just something you need in place when you die. It can also protect your assets in the event you become incapacitated or you cannot make decisions for yourself. You should be thinking about insurance you might need and how to designate a healthcare proxy and/or power of attorney.
Having an estate plan can help you minimize transfer taxes if you have established wealth and plan to transfer it to other family members once you pass away. Estate planning also protects your family’s wealth. You can remove your name and put your assets into protected trusts or other limited-liability entities.
Contact a Washington DC Estate Planning Attorney
If you have questions or need assistance on getting started with your estate plan, contact Tobin, O’Connor & Ewing at 202-362-5900 to schedule an initial consultation. Let our skilled Washington DC estate planning attorneys help with all your estate planning needs.