Why Young Adults Need an Estate Plan Too
Estate planning is not just for those in their golden years. You do not need to be elderly, ill or rich to need an estate plan. Basic estate plans can be useful even for young adults. You cannot predict the future, but you
Fulfilling Final Wishes
Even a young adult with a modest estate likely has certain preferences regarding who should get what in the event of their death. You may wish to financially protect a spouse, parent, child or even a pet, for example. If you pass away with your wishes unclear, this can create conflicts among your friends and relatives regarding what to do with your items.
An estate plan allows you to allocate where your money, bank accounts, investments, assets, vehicles and personal possessions should go following your death. It allows you to communicate your wishes when you are no longer here to do so.
If you don’t wish to bestow your assets on loved ones and instead want them to be donated to charities, this is your right. If you don’t provide clear instructions in a legally binding estate plan, however, you will lose the ability to make these decisions for yourself.
Agency Over Medical Decisions
If you have opinions regarding how your medical care should be handled in the event that you become incapacitated – such as what procedures you are willing to undergo and how long you wish to be kept on life support – these need to be documented in an estate plan for your own peace of mind, regardless of your age.
With an estate plan, you can choose a medical power of attorney or have an advance health care directive. This will give someone of your choosing the power to make health care decisions on your behalf if you’re unable to do so yourself. Without an estate plan in place for this possibility, your end-of-life health care wishes may not be honored.
Small Business Contingency Plans
If you are one of many young adults who have started a business venture – even if it’s still just a one-person enterprise – you should take steps to protect your business assets in the event of your death or incapacitation. An estate plan allows you to dictate exactly what you wish to happen to your small business.
You can designate a trusted business partner, friend or family member to step in and make business decisions in your stead, for example, if you become incapacitated by an injury or illness. This can keep your business up and running the way you want it until you’re able to return.
Setting Up for Future Success
Starting your estate planning journey as a young adult, while you have a relatively simple estate, can make future endeavors easier (and less costly). Without any advanced planning, your estate could become complicated and messy. At this point, organizing things and resolving issues will take a lot more time and effort. This can cost you more in related expenses, including attorney’s fees and taxes. Planning ahead prevents this problem.
Find out if now is the right time to start your estate plan. Contact TdD Attorneys at Law LLC for a free and no-obligation case review with an estate planning lawyer in St. Louis, Missouri.