An estate refers to everything someone owns, whether a house, car, real estate, bank accounts, life insurance, investments, or personal possessions. No matter how large or modest the estate, all owners have one thing in common; assets cannot be taken with them when they pass away.
Control of those assets is given to whom the deceased person has listed as an executor in their will. The executor then sets about handling the bequeathing of the estate. When you draw up a will, you need to provide clear instructions about the bequeathing of your estate to ensure that your wishes are carried out. This is where estate planning comes in.
What Is Estate Planning?
Estate planning is the process of creating a will and ancillaries or a trust to ensure proper control of your assets during incapacity and a smooth transition upon your death.
It involves making a plan in advance in naming the individuals or groups as the recipients of the things you own after you pass. Planning your estate might be something you want to put off, but attorneys heavily advise against this. Instead, it is always best to plan your estate at your earliest convenience.
Deciding to do estate planning later in life can make things difficult for you and your family. When you pass away with or without a will, assets owned in your name without a beneficiary designation must go through probate court, a lengthy and arduous process that your loved ones shouldn’t have to endure when they’re mourning. For those without a will, the estate must be divided according to the intestacy laws of their state. For those with a will, the probate judge must prove the will and then oversee.
However, aside from death, other life events warrant the creation (or updating) of an estate plan, and these are:
- Home and Additional Property Ownership: Your estate grows every time you buy a house or any property, so you want to ensure any new asset additions are added in your estate plan.
- Savings Account: An estate plan ensures that the funds in your savings accounts are quickly passed to anyone of your choosing.
- Marriage or Remarriage: Planning can determine which assets should be combined with your spouse’s and which remain under your name.
- Inheritance of money or other assets: You should create or update your estate plan when you receive an inheritance to reflect any additional funds or assets.
- Any birth in the family: One of the most common estate planning triggers is the birth of a child within the family. Planning your estate ensures the financial security of every child in case anything were to happen.
- Travel: Estate lawyers recommend updating your plan every time you plan to travel for long periods.
- Divorce: It’s crucial to update and alter any estate plans you made with your former spouse.
When Is Estate Planning Necessary?
Beyond these milestones, there are broader circumstances that make estate planning necessary. Understanding these principles helps you know when it’s time to take action.
Health and Age Considerations
Accidents and illness can strike unexpectedly, even for younger adults. Putting an estate plan in place gives you control over who manages your finances and who makes medical decisions if you become incapacitated. It also spares loved ones from stressful decisions during an already difficult time.
Protecting Minor Children
For parents, planning your estate is essential. A will can name guardians, while a trust can provide financial support until children are grown. Without these protections, the court may decide guardianship, and funds may not be distributed in the way you intended.
Blended Families and Special Circumstances
When stepchildren, remarriages, or dependents with special needs are involved, intestacy laws rarely align with personal wishes. A tailored estate plan ensures each family member is treated fairly and helps avoid conflict among heirs.
Financial and Business Interests
Owning a business or significant property means others rely on your decisions. Succession planning secures continuity for employees, protects real estate holdings, and keeps family wealth intact. Planning your estate in advance prevents forced sales or costly disputes.
Tax and Probate
Even though South Carolina does not impose an estate tax, the federal estate tax may affect larger estates. Probate, too, can take months or even years. Thoughtful estate planning reduces delays, expenses, and uncertainty, giving your family timely access to resources.
At the end of the day, estate planning is all about protecting your loved ones and legacy at every stage of life.
What Should Be Included in an Estate Plan
Minor details, like a misspelled word or missed signature, can significantly alter your plan. Consulting an estate planning lawyer can prevent errors, ensuring that your assets are given to the rightful recipient.
In addition, estate planning requires many documents. It’s advisable to acquire the services of an attorney who is knowledgeable in the documentation requirements, financial instruments, and protocols needed to implement your plan. Having an attorney on your team will make the whole process easier and stress-free.
The documents you need will depend on your concerns and the assets you own. However, there are usually 10 essential documents that are necessary to get your affairs in order:
- Last will and testament
- Revocable living trust
- Advance healthcare directive
- Beneficiary designations
- Insurance policies
- Titles and property deeds
- Proof of identity documents
- Financial power of attorney
- Digital logins
- Funeral instructions
The paper requirements may seem lengthy, but your legal team will assist you in securing each copy. Once you have your estate planning documents, they need to be stored in a safe place. Tell your loved ones and your attorney where you keep them, so they can easily access the papers once they are needed.
When To Start Planning
Many people assume estate planning is something to think about later in life. The reality is that certain steps become important much earlier, and each one serves a different purpose.
Let’s look at the primary components of an estate plan to understand further when to take action.
When To Make a Will
A will is the foundation of estate planning, spelling out how your assets will be distributed and who will manage the process.
The right time to create one is as soon as you purchase property, open savings accounts, or begin supporting dependents. State intestacy laws take control without a will, and they may not reflect how you wish to pass your assets on.
When To Create a Trust
Trusts allow assets to pass directly to beneficiaries, bypassing probate.
Consider a trust if you own real estate property, operate a business, or want to provide ongoing support for children or loved ones with special needs. Planning your estate with a trust gives you privacy and greater control over how and when assets are used.
When To Create an Advanced Healthcare Directive
This Health Care Power of Attorney ensures your medical wishes are honored if you cannot speak for yourself. It allows you to appoint someone you trust to make decisions on your behalf and prevents uncertainty during a medical crisis.
Because illness and accidents can strike at any age, every adult should include one in their estate plan.
When To Nominate a Guardian
Parents should make this decision as soon as they have children. Nominating a guardian in your plan ensures the court will know your choice for guardian of your children.
Ultimately, it provides peace of mind knowing that your children’s emotional and financial needs are secured if the unexpected happens.
Who Should Start Estate Planning?
Many still believe estate planning is only necessary for the very wealthy or those at the end of their lives. The truth is that everyone benefits from this process. It ensures your wishes are carried out, regardless of the size of your assets.
For these groups, it’s best to start sooner rather than later:
Older Adults
Approaching or living in retirement often brings reflection on how to transfer wealth to children or grandchildren. Having an estate plan at this stage helps avoid probate delays and ensures resources are available quickly when needed.
It also allows older adults to appoint trusted individuals to manage financial and medical decisions if incapacity occurs.
Parents of Millennials
Many in this group are simultaneously supporting adult children and caring for aging parents. Without clear planning, this “sandwich generation” risks leaving their loved ones in financial and legal limbo.
If you are in a similar situation, estate planning can help reduce stress for your family and clearly designate who inherits what.
Families With Property or Businesses
Families who own homes, rental properties, or businesses face unique concerns. Succession plans prevent forced sales, and trusts can provide ongoing support for dependents. A comprehensive estate plan ensures that real estate, savings, and business assets remain intact and pass smoothly to the next generation.
Preparing for the future is not just for select groups. When you plan your estate, you’re taking a responsible step in protecting family harmony and your peace of mind.
When To Update Your Estate Plan
You should update your estate plan for significant life events like the ones listed above. Still, years can go by without milestones, but that doesn’t mean that you shouldn’t review your plan. It is recommended to revisit your estate plan every three to five years.
Updating your plan ensures your plan properly reflects your concerns.
Should You Update Your Estate Plan?
Many face the hesitation question and wonder if it’s truly necessary to update their plans. Completing the documents can feel like checking a box and moving on.
This shouldn’t be the case. Your estate plan should grow and change as your life does. Many families learn too late that outdated documents cause confusion, disputes, and even financial loss.
Consider these risks:
- Beneficiaries may no longer reflect your current wishes.
- Guardians you once trusted may be unable or unwilling to serve.
- Executors or trustees may no longer be the right fit.
- Changes in tax law could create unexpected liabilities.
- Newly acquired property or accounts may be left out entirely.
Families grow, and life evolves. Laws can also change over time, so your documents must reflect these shifts. Regular reviews every few years, or after significant milestones, keep your plan accurate and effective.
As you revisit your estate plan, remember that updating doesn’t necessarily involve redoing everything. Instead, it’s about fine-tuning what you already have so that it continues to serve your family well.
With a refreshed estate plan, you can move forward with the confidence that your loved ones will be protected when it matters most.
Plan your estate the right way with Wiles Law
Wiles Law is a full-service estate planning law firm dedicated to helping people preserve their legacy through wealth protection strategies. We can help with trusts, wills, probate, and tax, and business planning.
Our estate planning services can help you safeguard your hard-earned assets and ensure they are given where you want to. Secure your goals now and partner with an experienced estate planning firm like Wiles Law. Our trained attorneys can assist in creating a solid estate plan that suits your needs.
We are always ready to accommodate you. Contact us today.