As a medical professional, you have dedicated your career to caring for others. But when was the last time you checked up on your own health? Health is a broad term. In addition to checking in on your physical wellbeing, physicians need to make sure their finances are in order. One of the best ways to do this is with thorough estate planning. By putting together and reviewing an estate plan, you are forced to have important conversations about your finances, investment strategies, tax planning and future goals.
The need to check in on this aspect of your health begs an important question – how is your estate plan? For many physicians, the answer is either “non-existent” or “out of date.”
The foundation: Why doctors need comprehensive estate planning
Medical professionals face unique estate planning challenges. Between long shifts, continuing education and patient care, it is easy to understand why putting together and regularly updating legal documents falls to the bottom of the priority list. However, physicians often have complex financial situations that demand careful attention.
Most doctors visit an estate planning attorney mid-career, which often corresponds with welcoming children into the family. This process typically includes naming guardians and setting up basic trusts. While this is an excellent start, it is rarely sufficient as your career and assets grow.
The evolution of a physician’s financial life
Here is where many doctors fall behind: your financial situation at age 35 looks dramatically different from your situation at 45 or 55. Early in your career, you may have had student loans and modest savings. Two decades later, you might own part of your practice, have significant retirement accounts and hold interests in medical real estate or other business ventures.
Assets that may now be a part of your estate that require regular updates include:
- Ownership stakes in medical practices or surgery centers
- Real estate holdings including medical office buildings
- Retirement accounts that have grown substantially
- Investment portfolios and business interests outside of medicine
Without regular updates, your estate plan may not address these assets appropriately, potentially creating tax burdens or distribution problems for your heirs.
Take a moment for what matters and delegate the heavy lifting
Your estate plan deserves the same attention you give to your patients’ long-term care. Schedule a review every three to five years, or whenever you experience major life changes. Your family’s financial security depends on it, and keeping your plan current ensures your hard-earned assets are protected and distributed according to your wishes.
