“Give the people these instructions, so that no one may be open to blame. Anyone who does not provide for their relatives, and especially for their own household, has denied the faith and is worse than an unbeliever.” — 1 Timothy 5:7-8 (NIV)
Estate planning is more than just a financial necessity; it’s a moral duty. The verse above highlights the importance of taking care of our loved ones, making estate planning not just a practical step, but a spiritual obligation.
And if you’ve always thought that estate planning is just for the elderly or the wealthy—think again! Whether you’re just starting your career in your 20s or enjoying a peaceful retirement, estate planning is essential for everyone.
Despite this, a 2024 survey revealed that only 32% of Americans have formal estate plans, leaving most without control over their final wishes. This often means that important decisions could be made by others or even by the State. In this article, we dive into why estate planning is not only smart but necessary, no matter what stage of life you’re in.
Starting Out: In Your 20s and 30s
Feeling invincible? We all do when we’re just starting out! These early years are when you least expect to need an estate plan, which is exactly why it’s a critical time to have one. Early estate planning helps clarify your wishes—however straightforward they may be at this stage—so they are clear and actionable.
Take Stock of Your Finances: Create a list of bank accounts, investments, real estate, and any other valuable assets. This first step helps you organize your financial life, right from the start.
Create a Will: It’s important to recognize that it’s not necessarily about the size of your estate but about making your wishes known. A well-drafted Will helps outline exactly how you want your assets distributed after your passing, and is a great way to look after your family if you can’t be there—especially if you have minor children.
Consider a Durable Power of Attorney (POA) and Healthcare Proxy: Unexpected events don’t wait until you’re older. Establishing a POA and healthcare proxy early allows you to designate someone you trust to handle your affairs if you can’t. A POA specifically authorizes this individual to manage your financial and legal matters, while a healthcare proxy empowers them to make medical decisions on your behalf.
Set Up a Living Will:This document helps you lay out your wishes for medical intervention—a crucial piece if you’re unable to communicate those decisions yourself.
Building and Growing: In Your 40s and 50s
By the time you hit these middle years, life’s gotten a whole lot richer—both in terms of assets and complexity. Maybe you have kids, your dream home, or a thriving career. This stage is full of both financial and family growth, which makes it a great time to reassess and reinforce your estate plan.
Life Insurance Check-up: A key consideration for any estate plan, life insurance offers a safety net for your family that can help support them in your absence. But as your life evolves, so do your life insurance needs. That’s why it’s essential to reevaluate whether your coverage reflects your current situation.
Consider a Trust: Beyond a Will, a Trust is another way to manage and safeguard your growing assets. And despite what you may have heard, Trusts aren’t just for the wealthy. They are legal arrangements that allow for control over asset distribution, often avoiding probate and addressing specific wishes in estate planning.
Update Your Beneficiaries: Life changes—and so should your estate plan. Make sure the beneficiaries listed on your Will, insurance policies, investment accounts, and retirement accounts match your current wishes. Here’s one more thing to consider: it’s a good idea to review your beneficiary designations and Will at least every three years, or whenever you experience major life changes like marriage, divorce, the arrival of a new baby or grandchild, retirement, or a significant health event.
Pre-Retirement: Sharpening Focus in Your 60s
On the brink of retirement, now’s the perfect time to fine-tune your estate plan. The decisions you make now can significantly impact your legacy and retirement years, so it’s important to focus on strategies that reflect your upcoming lifestyle changes and the influence you want to have.
Advanced Trust Planning: Strategies like Charitable Remainder Trusts or Irrevocable Life Insurance Trusts can help you extend your legacy far beyond your lifetime. These sophisticated tools are capable of far more than just reducing taxes—they offer you the opportunity to support the causes close to your heart in a significant and enduring way.
Business Succession Planning: If you’re a business owner, what’s your exit strategy? Including a clear succession plan or buy-sell agreement in your estate plan is vital for your business’s continuity. A well-drafted and funded buy-sell agreement supports smooth transitions, helping to manage disruptions or financial difficulties when you leave. Plus, it can also provide for your family financially if you pass away or cannot work. Without such planning, your business could pass to heirs who are unable or unwilling to operate it, leaving your business legacy at risk.
Tax Strategies: With a substantial estate, it’s critical to engage in tax planning to effectively transfer wealth to your heirs—and not to the IRS. This includes several strategies, like setting up Trusts, making charitable gifts, and gifting assets during your lifetime. Each of these is designed to reduce your estate’s tax burden while helping you fulfill your legacy goals.
Your Enduring Legacy: Retirement and Beyond
By this stage, many people are tempted to think they’re done planning. But retirement isn’t the finish line for estate planning. In fact, it’s a pivotal time for maintaining, updating, and shaping the legacy you’ll leave behind.
Estate Review: Regular reviews with your estate planning team can provide confidence that your plan will remain effective. Changes in laws, financial circumstances, or even family dynamics can all impact your estate plan, so checking in regularly helps keep it current.
Charitable Giving: What is the vision for the wealth you’ve built? For most people, leaving a legacy isn’t just about assets, it’s about making a difference. If this sounds like you, consider how charitable giving fits into your estate plan.
Gift Wisely: Gifting assets during your lifetime allows you to take advantage of the gift tax exclusion, potentially reducing the overall estate tax burden. Typically, you can give gifts up to a certain limit (determined annually) to as many people as you like without affecting the lifetime gift exemption amount. Plus, this lets you witness the impact of your generosity firsthand.
Prepare for Tomorrow, Starting Today
Your estate plan is so much more than a collection of paperwork—it’s a representation of your life’s achievements and values. As your life evolves, so too should your estate planning strategy.
As God reminds us in 1 Timothy 5:7-8 to “provide for our relatives, and especially for their own household,” building a robust estate plan is a great way to accomplish this mission.
Whether you’re beginning to grow your assets or preparing to leave a legacy for your loved ones, thoughtful planning now can greatly impact your future. At EagleFlight Wealth Management, we’re committed to supporting you through every step of the process.
For tailored guidance and to create an estate plan that fits your individual needs, contact us by calling (765) 288-1927 or emailing barry.hickey@cfdinvestments.com.
About Barry
Barry Hickey is the founder, managing partner, and financial advisor at EagleFlight Wealth Management, a financial services firm based in Muncie, Indiana, helping people live and retire with dignity and financial peace by planning their financial future with a biblical worldview. Barry has been in the financial services field since the mid-1980s. In 2006, inspired by Isaiah 40:31 (“They that wait upon the Lord shall renew their strength; they shall mount up with wings as eagles; they shall run, and not be weary.”), Barry became an independent financial advisor and founded EagleFlight with the mission to help people plan for their financial future and find financial peace, and to fulfill the mission God gave him.
Born and raised in Muncie, Barry graduated from Muncie Southside and served in the Marine Corps during the Vietnam War. He holds a Series 6, 7, 63, and 66 securities licenses and the Indiana Life and Health Insurance License. He also holds the Accredited Asset Management Specialist℠, Chartered Retirement Planning Counselor℠, Certified Kingdom Advisor®, and Retirement Income Certified Professional® designations.
Outside of work, Barry enjoys reading, watching football and baseball, and spending time with his wife (Carla), children (Kristin, Ryan, and Lauren), and grandchildren (Emmi, Cate, Ben, Maddie, Sophia, Bella, and Brady). His favorite Scripture is Matthew 6:33, “But seek first his kingdom and his righteousness, and all these things will be given to you as well.” To learn more about Barry, connect with him on LinkedIn.
Barry Hickey offers Advisory Services through Creative Financial Designs, Inc., a Registered Investment Adviser. Barry Hickey and Ryan Hickey offer Securities through CFD Investments, Inc., a Registered Broker/Dealer, Member FINRA & SIPC, 2704 S. Goyer Rd., Kokomo, IN 46902. 765-453-9600. EagleFlight Wealth Management is not an affiliate of Creative Financial Designs, Inc. or CFD Investments, Inc. Neither Creative Financial Designs, Inc. nor CFD Investments, Inc. or EagleFlight Wealth Management offers legal or tax advice.