At What Net Worth Do You Need Estate Planning?

What is estate planning?

Estate planning is the process of legally preparing how your assets – like your home, accounts, or business – will be managed and distributed if you become incapacitated or after you pass away.

But, it’s not just about the assets themselves. It also includes naming guardians for your children if they are minors, setting up powers of attorney, and creating a plan that gives your family peace of mind and a smooth transition after you pass away. It’s about making sure your loved ones receive what you’ve given them correctly and in a timely manner.

At its core, estate planning is about protecting people, not just things. It’s a gift you give to your loved ones to reduce confusion, delay, and stress. It saves them from a potentially time-consuming and stressful probate process, allowing them to celebrate your life and mourn your loss in peace.

At what net worth do you need estate planning?

So, at what net worth do you need estate planning?

There is no minimum dollar amount. If you own a checking account, savings account, investment account, vehicle, real estate, or even just miscellaneous tangible personal property like household contents, tools, firearms, or jewelry, your loved ones will benefit from you planning ahead to ensure those items are distributed the way you want after your death. You do not have to be wealthy to benefit from an estate plan. In fact, most Oklahomans, especially homeowners, parents, and small business owners, can avoid future headaches by taking the time to complete their estate planning.

While we recommend that most everyone takes the time to work with an estate planning attorney, here are a few indicators that it’s time to invest in a plan sooner than later:

• You own property (even a small home or land)
• You have savings, retirement accounts, or life insurance
• You have children or dependents
• You run a small business or rental property
• You want to ensure your wishes are followed clearly

While high-net-worth individuals often need more detailed planning to reduce estate taxes, everyday families benefit just as much from thoughtful planning. Estate planning is less about wealth and more about direction. If you care where your things go and who’s in charge of making decisions, it’s time to plan.

Interested in other estate planning myths? Check out this article from financialplanningassociation.org.

How Do You Create an Estate Plan?

Creating an estate plan starts with a conversation.

A qualified estate planning attorney will help you assess your current assets, clarify your wishes, and walk you through the tools that fit your specific needs: like wills, trusts, powers of attorney, and healthcare directives.

At Coats Law Firm, we work with Oklahomans from all walks of life to create personalized estate plans that offer clarity, protection, and peace of mind. Whether you’re navigating a major life change, building your assets, or just getting started, it is never too early to plan.

Here are some of the key steps to get started:

1. Take Inventory of Your Assets: List your property, bank accounts, investments, retirement funds, life insurance policies, and any business ownership. These will be important as you dive in!
2. Identify Your Goals and Wishes: Decide who you want to inherit your assets, who should make decisions for you if you’re incapacitated, and who would be your children’s guardians if you currently have minor children.
3. Work with an Estate Planning Attorney: An attorney will ensure your documents are legally sound and tailored to Oklahoma laws and your unique situation.
4. Name Key Decision-Makers: Appoint an executor, trustee, guardian, healthcare proxy, and financial power of attorney you trust to carry out your wishes. Talk to these decision-makers! Let them know of their potential responsibilities.
5. Communicate Your Plan: Let your loved ones know your plan exists and where to find your important documents.
6. Review and Update Regularly: As your life grows and changes, you may decide to make changes to your estate plan. Revisit your estate plan after major life events like marriage, birth, divorce, or significant financial changes.

Uncovering the Value of Estate Planning

At what net worth do you need estate planning?

The better question might be:
Do you care about who receives your assets and how those decisions are made?
If the answer is yes, then estate planning isn’t just for the wealthy – it’s for you.

Estate planning is one of the most powerful ways to protect what you’ve built and care for the people you love. No matter your net worth, we’re here to help you uncover the value of having a clear, confident plan for the future.

Ready to create your plan? Contact Coats Law Firm today to get started.