When is it time to talk with an estate planning lawyer? This question was raised by a Reddit poster recently. The original poster (OP) said he is in his mid-thirties, has a net worth of $5.3 million, and has three young children. The family’s household income is between $600K and $700K.
The OP said he’d heard that talking to an estate planning lawyer was important but he wasn’t sure if he should do it now, or wait to do it until he is in his 50s or 60s. So, should he get a lawyer soon or can he put it off for another time?
Estate planning is always important for parents of young children
In this situation, it’s pretty clear that the OP needs to talk with an estate planning attorney now, not when he is in his 60s. In fact, even if he did not have $5.3 million, it would be important for him to talk to a lawyer. That’s because he has three young children.
Any parent with young kids should have an estate plan in place because they need to:
- Name a guardian for their children
- Ensure there is a plan to provide for their children into adulthood
If the OP does not put a plan in place and he and his wife both die in an accident or from some other cause, they could lose the chance to determine who will raise their kids. The court would have to decide both who should take custody and who should manage assets for the children. This is not something most parents want left in the hands of a judge.
With so much money at stake, making a plan to provide financially for the children will also be vital. Otherwise, whoever the court appointed would manage the children’s inheritance until they became adults and then the kids would get handed a lot of money with no strings attached at age 18. This is also a very undesirable outcome.
The right estate planning tools allow the Redditor to name a guardian, create a trust for the kids, and decide who should manage the money and when and how the kids can access the funds.
A larger estate means estate planning becomes even more essential
While this Reddit user should make an estate plan because he is a parent, his high net worth makes estate planning even more essential. He’s going to be looking beyond a simple will here and needs to consider things like:
- How to effectively protect assets in case of creditor or insurance claims or if he must go into a nursing home and doesn’t want to spend down his wealth
- How to transfer assets quickly and privately outside of the probate process
- How to structure an inheritance so it is used wisely
If he continues to acquire more assets over his working life, he may also reach a point where he must take steps to shield his estate from estate taxes as well.
An experienced estate planning attorney can help him both now and in the future to make sure his money and property are safe and his kids are provided for. There is no reason to put off getting the necessary help, as there is no way to know when tragedy could strike.
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