There are many different times when you may want to consider making an estate plan. For instance, maybe you just had a child, so you want to set up a trust or pick a guardian. Maybe you just acquired a significant amount of assets – starting a business, buying a house, getting an inheritance – so you want to address how your wealth will be used in the future.
The thing to keep in mind is that a serious medical diagnosis may mean that you need to update your estate plan or create one if you haven’t done so already. This diagnosis can change the course of your life and may make it more likely that you pass away. It is safest for your family if you have a plan in place in advance, helping the transfer of assets go smoothly.
Beyond your assets
Additionally, remember that estate planning isn’t just about how to pass money or other assets to the next generation. There are other tools you can use at this time.
For example, maybe there is a risk of incapacitation due to your diagnosis. You could use a medical power of attorney, select an agent who can make decisions for you, and officially put them in a position to take over if you do become incapacitated and can’t make these decisions yourself.
On top of that, the diagnosis could indicate that you will have significant medical costs in the future. This is when you may be interested in potential benefits that you can use or steps you can take to transfer more of your wealth on to your family. People are often concerned about a diagnosis late in life draining all of their funds, and there may be steps you can take to prevent this from happening.
Setting up your plan
This can be a tumultuous time in your life, but it can help to take control of the situation by focusing on your estate plan and your family. Be sure you know what steps to take.
