Young adults usually think that they have plenty of time to think about things like estate planning. What they might not think about is that nobody knows when something will happen to them. Because of this, it’s imperative that all young adults get their estate plan in place.
Some younger people might not think that they need an estate plan. This is likely partially because they think they have time to get this done. It’s also probably partly because they don’t have considerable assets. Still, this doesn’t mean that they should skip estate planning.
What should young adults know about estate planning?
There is much more to estate planning than just writing down who you want to get which assets. If you don’t have any assets, you still need to have other estate planning components taken care of. This includes creating your living will and setting up power of attorney designations.
Together, the living will and the health care power of attorney ensure that your wishes are complied with when you’re incapacitated. The advanced directive document puts some of your basic medical wishes in writing. The person who you name in the power of attorney document will make decisions that aren’t covered in the advanced directive document.
You also need to set up the financial power of attorney document. This person will pay your bills and handle any decisions that have to do with assets or money.
As the years pass, you may need to update your estate plan to change the power of attorney designations or to add in new components like wills or trusts. Discussing your current wishes with your attorney can help you to determine what you should do.