When Should I Create an Estate Plan?

Our clients and friends often tell us they are not old enough or rich enough to make an estate plan.  Often, they are wrong. So when should you create a plan? We can help you make that decision.

Here are some reasons why you might need a plan now:

1.      You have children under age 18 – If you pass away with children and without an estate plan in Wyoming, half of your property will be distributed to your spouse and the other half to your children. If those children are under age 18, someone will need to set up a Conservatorship for the children to manage the assets until the child turns 18.

Usually, homes are titled to spouses as husband and wife – this results in the house transferring to the surviving spouse, not one-half to the children.  However, we see many houses purchased by one spouse prior to marriage when interest rates were low, and the couple does not want to refinance the loan. Without a Trust, the surviving spouse who is not on the house title will often have to buy out the children’s one-half interest in the home. This gets even more complicated if the children are under 18, requiring a Conservator. 

2.     Your assets exceed $200,000, include real property, or property in multiple states– At your death, certain assets are transferred to your loved ones without a probate, using transfer on death designations.  Examples of this include bank accounts, retirement accounts, and titles to assets held jointly with right of survivorship. If designations are properly completed, those assets will not go through Probate to transfer to your loved ones. Wyoming law requires a full Probate (a very complicated, expensive, and long process) if you die with $200,000 or more of assets requiring Probate. Below that amount, a summary (simpler, cheaper) process is available. 

In many cases, a Trust provides better options for families than transfer on death designations. Trusts ensure that the assets are managed for you during your lifetime and ensures a smooth transfer to your loved ones.

If you own real property in more than one state, you could be required to complete a probate in each state you own property. That is double the expense and complication.

3.     You are getting older or have health concerns – Many clients wait too long to start their plan. They have difficulty signing their name due to physical impairments. One spouse develops dementia or requires long term care. It would have been so much easier to help them if they had a plan in place well before these problems arose. 

Make an estate plan while you are still mentally and physically able. Put Powers of Attorney for property and healthcare decisions in place early, while you know what you want. Make it easy on your family by planning before it is too late. If you do require long-term care later in life, know that the State of Wyoming will look back five years to see what property you have given away for less than fair market value. 

We can help you address all these problems, but only if you call before it is too late. (307) 682-1313.