Make Estate Planning Your New Year’s Resolution
By Colton Powell, Law Office of Libby Banks
Every January, people make resolutions to get organized, start fresh, and finally tackle the tasks they spent all last year avoiding. In our office, we see a wave of people who decide that this is the year they will get their estate plan done once and for all. They often tell us they feel guilty for putting it off, or that other things simply took priority. The truth is that most people do not wake up one day excited to do an estate plan. Something usually triggers that urgency.
What we have noticed is there is usually a catalyst. It could be a new baby in the family, a recent hospital stay, or buying a new home. These events tend to be the tipping point for getting an estate plan. Since we are in the season of making New Year’s resolutions, it is a perfect time to talk about why estate planning should be one of them.
Health concerns are a big motivator
One common reason clients finally come to see us is a medical issue. They might have had surgery that did not go as smoothly as expected or a health scare that reminded them that life is unpredictable. Even something as simple as a doctor advising them to think ahead can get the process started.
Health issues also highlight the importance of powers of attorney. When someone realizes that their spouse or adult child would not automatically have the authority to access medical information or handle finances during an emergency, it becomes clear why an estate plan matters. We have many clients who come in after dealing with the illness of a parent or close friend and say, “I never want my kids to go through what I went through.”
Buying a major asset creates new responsibility
Another common catalyst is the purchase of a significant asset, usually a home. A new home comes with excitement, but it also comes with responsibility. Clients often tell us they did not realize their home would end up in probate if something happened to them. Once someone understands that probate can take months and cost their family unnecessary money, they start looking for ways to avoid putting their loved ones in that position.
Putting a home into a properly drafted trust is usually the simplest way to ensure it transfers smoothly. January tends to be a busy time for new homeowners who closed on a property near the end of the year and want to start off on the right foot.
Family changes bring estate planning to the forefront
Life changes within a family can also create a strong sense of urgency. We regularly hear from clients who have gone through one of the following:
- A marriage or divorce
- The birth of a child or grandchild
- Children growing up and becoming responsible adults
- The death of a loved one
- Estrangement or reconciliation with a family member
These events cause people to rethink who they want to protect and how they want their assets handled. When your family changes, your priorities change with it, and estate planning becomes part of that conversation.
The myth of “I don’t have enough”
One of the biggest obstacles we hear is the belief that an estate plan is only for people with substantial wealth. Many clients start their consultation by saying, “I don’t really have much to plan for.” By the time we finish talking through their situation, they realize they have more to protect than they thought.
Even simple estates need planning. A home, a car, a bank account, a retirement plan, personal belongings, and the need for someone to make decisions during an emergency all require thoughtful instructions. Estate planning is not only about passing on wealth. It is about protecting your loved ones from stress and confusion.
Why January is the perfect time
There is something about the new year that gives all of us permission to reset. The same way you commit to cleaning out the garage or organizing your finances, you can commit to finally getting your documents in order.
We see many clients every January who walk out of their signing meeting relieved that the burden they carried for years is finally off their shoulders. Starting the year with that level of clarity and protection is one of the best gifts you can give yourself and your family.
How we can help
Whether your catalyst is a health scare, a new home, a big life change, or simply the desire to start the year with a clean slate, our office can guide you through every step of the estate planning process. We make sure your loved ones are protected, and your assets are positioned to avoid probate.
If you have been thinking about creating or updating your estate plan, this New Year is the perfect time to take action. Give us a call at 602-375-6752 to schedule a free consultation. We would be happy to help you start the new year with confidence, clarity, and peace of mind.