People have different financial situations and goals at age 35 than they do at age 65. As such, the actions they should take at those points in life should be tailored to help them achieve those outcomes.
This blog will provide insights on tailoring estate plans to meet specific needs and circumstances at these ages. A Florida estate planning attorney can help you create a custom estate plan and explain the different estate planning strategies at age 35 vs. 65.
Why Estate Planning Changes Over Time
Changes in the tax laws and other legislation cause some of the evolving nature of estate planning, as strategies that took advantage of tax breaks might need to be modified when those tax benefits go away. Your estate plan can also change as your family grows and as you shift from one stage of life to another.
Estate Planning Strategies at Age 35
Estate planning clients often assume that when they set up an estate plan, they can check that item off of their “to-do” list and forget about it, but that can be a mistake. An estate plan that focuses on the priorities of a person in their thirties might not still be a good fit for that person 30 years later.
Your estate planning goals at age 35 likely include some or all of the following things:
- Protecting your family’s financial future in the event that you die before accumulating enough wealth to support them. Many people purchase life insurance to accomplish this goal.
- Choosing a guardian to raise your minor children if you are unable to do so. You do not want to leave a crucial decision like this in the hands of a total stranger, but that is what can happen if you do not designate a guardian for your young children. A judge would have to appoint someone to raise them.
- Distribution of your assets. You might not think that you have many assets to distribute, but failing to write a will or living trust will mean that you could die intestate. Administering an intestate estate is a long, expensive process. Your loved ones will get less money after the administration costs.
An estate planning attorney can write an estate plan that encompasses these and other goals in your circumstances when you are a relatively young adult.
Estate Planning Strategies at Age 65
At age 65, you have likely worked hard for decades to build your family, your career, and your financial wealth. A well-tailored estate plan could help you preserve your wealth by minimizing the amount of taxes and estate administration costs, safeguarding your assets for your loved ones.
Estate planning at age 65 should include attention to health issues. A durable power of attorney could designate someone to manage your finances if you become incapacitated by an illness or accident. A medical power of attorney lets you select who will make medical decisions for you if you are unable to do so. An advance directive or healthcare proxy lets you provide guidance about your end-of-life wishes.
You will want to revisit your beneficiaries from earlier estate planning documents. You might have additional beneficiary candidates like grandchildren and fewer beneficiary candidates due to death or divorce. It is essential to keep the distribution of your assets up to date. A Florida estate planning attorney can guide you through the multiple issues that are appropriate in estate planning at any age. Feel free to contact the office today for a consultation.