Some people believe that you do not need to make an estate plan while you are still relatively young. When those who do not have a plan in place are asked why, one of the top reasons that they give is that they intend to do it when they are older.
But the reality is that drafting a will and other types of estate planning documentation can actually be helpful in your 20s. You do not have to wait until you are in your 60s or 70s. Here are three reasons why it can still help at a young age.
An uncertain medical future
For one thing, medical emergencies can happen at any age. In New York, you can use a healthcare proxy to choose an agent who can make medical decisions for you if you are incapacitated. Should an unexpected illness or injury strike, you already have a plan in place for who can help authorize medical care.
A guardianship for a child
Furthermore, anyone who has a young child needs to consider what the future looks like. If a parent passes away at 25, for example, it may help to have already established a guardianship for their child. This gives the child stability and ensures that they get the care that they need.
You do not need major assets
One reason that people wait to do their estate planning is that they are saving assets their entire life. Their investments, savings and physical assets are growing.
But you do not necessarily need to have an excessive amount of wealth for an estate plan to be valuable. Even a low amount of assets can be passed on to other beneficiaries. If your wealth increases as you get older, you can always make updates to your existing estate plan. There is no need to wait to start at that later age.
If you do not have an estate plan yet, it can be helpful to look into the steps you can take to get the process underway.