Young adults often avoid an early start on estate planning for several reasons. They might think a will or making a retirement plan can wait until they are in their thirties or forties.
In reality, early estate planning for young people has many benefits.
Protecting assets
Information from Forbes states that estate planning principles can prove beneficial for people regardless of wealth and age. Even young adults in most cases hold some assets such as a vehicle, savings, retirement accounts and other possessions.
A will remains among the most important documents for directing assets when death occurs. As the legal foundation of most estate plans, a will provides written instructions for the distribution of assets and makes sure anything with value goes to the desired party.
It can also provide instructions for appointing a guardian for minor children. The numerous benefits of having a will in place for young adults include the following:
- Provides a plan for assets
- Reduces uncertainty and doubt
- Provides legal clarity
Addressing medical concerns
While young adults might believe they will not suffer medical setbacks, the potential does exist for an incapacitating illness or accident. A living will enables the individual to tell loved ones and medical providers the type of treatment and level of care desired. This document touches on resuscitation, ventilator use and other extraordinary means of keeping a person alive.
Another option for similar concerns involves a health care proxy. This legal document empowers another person to make health care decisions in the case of incapacity.
Estate planning covers many areas of life and death for both young and old. It should begin whenever a person has assets that need protection.