Estate planning isn’t just for older adults anymore. Young people can benefit from creating an estate plan early in life. It helps protect your assets, ensures your wishes are followed and can save your loved one’s time and money. Even if you don’t have many assets, starting your estate planning now can be smart.
Why young people should consider estate planning
You might think estate planning is only for the wealthy or elderly, but that’s false. Here are three good reasons why young people might want to start their estate planning:
Cost savings
Starting your estate planning early can save you money in the long run. As you get older and acquire more assets, your estate planning needs may become more complex and expensive. By starting now, you can create a basic plan that’s easy to update as your life changes. This approach can be more cost-effective than waiting until later to create a comprehensive plan.
Better planning
When you’re young, you have the advantage of time. You can take a thoughtful approach to your estate planning without feeling rushed. This allows you to make well-considered decisions about your assets and healthcare wishes. You can also take the time to learn about different estate planning tools and choose the ones that best fit your needs.
Easier for your family
Creating an estate plan now can make things easier for your family in the future. If something unexpected happens, having a plan will help your loved ones know what to do. It can reduce stress and potential conflicts among family members during a difficult time. Your estate plan can provide clear instructions about your wishes, making it easier for your family to honor them.
Critical elements of estate planning for young adults
Even if you’re just starting out, there are some important estate planning documents you should consider:
Will
A will is an essential document that states how you want your assets distributed after you die. It’s a good starting point for estate planning, even if you have few assets.
Power of attorney
This document allows someone you trust to make financial decisions for you if you cannot do so yourself. It’s important for all adults, regardless of age or wealth.
Healthcare power of attorney
Like a financial power of attorney, this document names someone to make medical decisions if you can’t make them yourself. It’s a crucial document for young adults, especially those living away from their parents.
While you can create some estate planning documents independently, seeking legal help can be beneficial. A lawyer can ensure your documents are legally valid and truly reflect your wishes. They can also help you understand more complex estate planning tools that might benefit you as your assets grow.
By starting your estate planning now, you’re taking an important step to protect yourself and your loved ones. Remember, your estate plan isn’t set in stone. You can and should update it as your life changes. The most important thing is to get started. Your future self will thank you for your foresight and planning.