Many people procrastinate estate planning. In some cases, that’s because they think that it’s just too early to make a plan. For instance, when you look at the reasons why the majority of Americans do not have an estate plan, some will say that they are not old enough, they don’t have enough wealth yet or they haven’t retired. It’s always risky to put off estate planning, but these are some of the common reasons why people do it.
But what if you’re on the other side of the coin? Can it be too late to make an estate plan?
Testamentary capacity
In general, the answer is no. It can never be too late to make an estate plan. You always have a chance to make a new plan or update the one that you have. Estate planning can be used to make advanced medical decisions, to pass financial assets to family members, to help divide family heirlooms without causing a dispute and much more. These things are always helpful, regardless of your age.
That said, the one thing to consider is mental capacity. In order to draft or update an estate plan, someone has to show they have the testamentary capacity, demonstrating that they understand the changes they’re making and that it is truly in line with what they want. This is why it’s important to be prompt and make updates to your estate plan as soon as they become necessary.
If you are interested in updating your plan or drafting one, be sure you are well aware of the legal steps you’ll need to take to do so.