Creating an Estate Plan in Tennessee: When is the Right Time to Start?

As an estate owner, you want to ensure your assets are distributed to the right people and that your loved ones are provided for when you become incapacitated or die. But how do you start the estate planning process?

When the unexpected takes place, a solid estate plan provides you and your family members with peace of mind. Also, it can be updated eventually as life events change. At The Ebbert Law Firm, estate planning attorneys understand that approaching an estate plan can be hard. But they can help you navigate this essential area. Regardless of your estate’s size or why you prefer to make an estate plan, an attorney can help you establish a personalized solution. 

What to Know About an Estate Plan

Your estate plan will contain instructions about how your asses should be distributed to your beneficiaries and heirs when you die. Also, the plan can include documents that instruct what occurs when you become incapacitated. All the details you leave to others may cover authorizing your loved ones to make medical decisions, sign documents for you, or establish a trust for the long-term care you need. Without a solid estate plan, the default rules in the state apply.

Kinds of Estate Planning Documents

To make an estate plan, you can use different kinds of documents such as the following:

• A will. This legal document includes a plan for how your assets will be distributed and managed when you die. 
• A trust. This instrument offers a plan for the way a part of your estate will be managed and offers benefits to your chosen beneficiaries. 
• Payable-on-death accounts. Such assets include things such as investment accounts and bank accounts. They let you name a secondary account owner who takes over when you die.
• Powers of attorney. These are legal documents that let you authorize another person to make healthcare, financial, and property decisions for you. 

You can use some of these legal documents to make an appropriate estate plan. The documents to use depend on your preferences, the appropriate option for your situation, and your estate’s complexity. A skilled estate planning attorney can help you devise appropriate end-of-life plans. 

The Right Time to Begin the Estate Planning Process

Most financial experts recommend starting estate planning when you become a legal adult. The reason is that you are already legally responsible for whatever you own. Even if you do not own a lot of valuable assets, estate planning is still important. Any assets you own must be distributed regardless of the size of your estate. 

If you have a savings account, your estate plan must include this. If you die, somebody must take over this account. In addition, people must start planning their estate when they get married, divorce, or remarry. 

Things to Consider While Estate Planning

Regardless of your age, below are things you must consider when you start to plan your estate:

• Making a will. This legal document will detail who will be your minor children’s guardian when you die. 
• Exploring life insurance options. You need to have a strategy in place that covers the living expenses of your loved ones when you pass away. Speak with a financial advisor or estate planning attorney if you still do not have one.
• Discussing what you want for your future medical care. Outline your desires for future care. A Health Care Power of Attorney lets you name somebody to make healthcare or medical decisions on your behalf. Also, a Health Care Directive can let you detail the specific procedures or care you want or do not want to receive. 
• Reviewing beneficiary designations. If you had major life changes such as childbirth, marriage, or divorce, revisit your beneficiary designations to add or remove somebody from your list of beneficiaries.