Estate Planning Isn’t Just For The Elderly

Happy, smiling couple in their sixties.

Is it too early for young adults to create an estate plan?

On Behalf of | Apr 2, 2024 | Estate Planning

Adults in their 20s and 30s tend to focus on building their careers and accumulating savings. Once they attain stability, they may start to buy properties and make investments. While the future seems promising for them, it is also uncertain.

Therefore, young adults may choose to secure their assets by creating an estate plan. This ensures that their assets will go to designated beneficiaries should something bad happen. An estate plan offers several options to do that.

Last will and testament

In New York, those aged 18 and above who are “of sound mind” can make a will that takes effect upon death. It should detail how the estate owner wants to distribute assets like bank accounts, jewelry and real estate properties. The owner should assign an executor to carry out their will.

Living trust

An estate plan can also have a living trust. This allows the owner to manage their assets while alive. Trusts are private, and they don’t go through the probate process when the owner dies. In case of physical incapacity, the owner’s successor trustee can take over.

Powers of attorney and health proxies

Advance directives are crucial inclusions in an estate plan. First, a power of attorney takes care of financial matters. A designated agent can pay bills, give money to your family and manage your funds.

Second, a health care proxy assigns someone to make medical decisions in case you become terminally ill or incapacitated. You can also include your wishes for end-of-life situations and medical emergencies.

Updating your estate plan often

When young adults create an estate plan, it isn’t a done deal yet. Estate planning is an ongoing process that requires updating every few years or so. You may revisit and update your plan every 1 to 5 years.

Young adults also need to update their estate plans whenever they reach milestones. These include getting married, having a child, being promoted and acquiring new valuable assets.

Preparing for the unexpected

It’s never too early for young adults to prepare for the unexpected. An estate plan may protect your assets in life and death. Further, it guarantees that the fruits of your labor will benefit you and your loved ones.