A lot of people make the mistake of thinking that estate planning is something that you do when you’re old and the end is in sight. The truth is that estate planning should be started well before that point, as waiting too late puts your family and your estate at risk of a distribution scheme that’s contrary to your wishes. So, even as a young adult, you should consider creating a thorough estate plan.
As you read that, though, you might be wondering what an estate plan can do for you at such a young age. We hope this post will shine a light on the importance of early estate planning in hopes that you’ll see the value in starting the process now.
Top reasons to start estate planning as a young adult
There are multiple reasons to create an estate plan, even when you’re younger. Although your needs and wishes might change over time, thereby warranting modification of your existing estate plan, here are some of the top reasons why you should go ahead and create an estate plan now as a young adult:
- Specify care for your children: If you and your children’s other parent pass away unexpectedly and without an estate plan, then your families might fight over who will assume custody and care of your children. Your kids might then end up in the care of someone you never wanted to provide for them. All of this can be avoided with clear estate planning where you specify who will serve as your children’s guardian in the event that you and your children’s other parent pass away.
- Incapacitation can strike at any time: You never know when a medical condition or serious injury will suddenly leave you unable to make decisions on your own. When this happens, you’ll want to have someone you trust on your side making important health care and financial decisions on your behalf. You won’t have a say in who makes those decisions for you without an estate plan naming that individual through a power of attorney or a health care directive.
- You have more assets than you realize: Even if you don’t have a lot of money in the bank, you probably have more assets that think. You might have digital assets in the form of photograph banks, cryptocurrency, or social media accounts, and you can have assets of sentimental value. Even your pet will need some sort of care when you’re gone, unless you’re okay with them going to a shelter. All of these matters require sound planning if you want them to be handled appropriately in the aftermath of your passing.
- You’ll want to provide for your family: If you don’t have a lot of assets but you still want to provide for your family, then you ‘ll want to find ways to do so through the estate planning process. One effective way to support your family is to obtain a life insurance policy and ensure that you have proper beneficiary designation.
Are you ready to take the plunge into estate planning?
That can be a daunting question to answer, as the process can seem overwhelming, and you’re busy with the hustle and bustle of your everyday life. But once you create a thorough estate plan, you’ll probably breathe a sigh of relief knowing that your affairs are in order.
To create the estate plan that’s right for you and your family, though, you have to know your estate planning options. That’s where reading resources like our blog can help put you on the path toward the estate plan that’s right for you.