Why get an estate plan?

Everyone’s situation is different, but these are common reasons why an estate plan at different stages in your life could be beneficial for you.

You got married

Congratulations! While it is natural to focus on the future you will build together with your spouse, each of you having an estate plan could be the best gift you could give each other. Even if you don’t have any kids or any valuable property, an estate plan can help your spouse avoid having to fight with your family about how you really wanted to be laid to rest. Are you one religion and your family is another (or not religious at all)? A will can make it clear how your family can honor you in the way that you really want.

Additionally, an estate planning could be required in order for your spouse to receive all money and property. It is also not assumed that your spouse will get everything you own without an estate plan. In the District of Columbia, if you die before your spouse does and your parents are still alive, and you don’t have a will, your parents are entitled to 1/4 of the value of all of your possessions and money. If you have children (or grandchildren), your spouse will get even less.

You had a child

Congratulations again! As a parent of a young child himself, Rich understands the desire to focus on the present. It can feel like meeting your child’s immediate needs is all that matters. However, if something were to happen to you and your spouse at the same time, and you do not have a will designating a guardian, your child’s care will be uncertain. A court will likely have to appoint a temporary guardian and multiple members of your family or friends may fight each other in court to become the permanent guardian. If you and your spouse have a frank discussion about who you think should care for your child if the worst happens, you can spare everyone you know a lot of time and money. You can also avoid adding additional stress and anxiety on top of your child’s grief.

You are near the age of when you collect Social Security

Congratulations on reaching another milestone! At this point in your life it is useful to consider and plan for when you are unable to work and make decisions for yourself because it may come sooner than you think. You may need long term care in a nursing home, which is expensive and is not covered by Medicare. Medicaid does cover long term care in nursing homes, but there are strict requirements in order to qualify. An experienced estate planner can advise you on the best strategy on how to qualify for Medicaid if and when you need it.