• Bradley Ball

Do Young People Need Estate Planning?


One of the most crucial aspects of your financial planning is estate planning. Estate planning refers to organizing your assets to pass them on to your rightful heirs in a manner that you see fit and within the confines of the law.


Whether you have a lot of assets or not, writing an estate plan assures that there's a designated trusted family member to oversee your health care, finances, and the distribution of your property when you pass away.


But do young adults need estate planning, or is it too early?


At What Age Should Someone Consider Having an Estate Plan?


If you can, you should consider having an estate plan once you are 18. Early planning is always best. In putting the things in one place, you ensure that you have everything you need. You can update your estate plan throughout the years as circumstances change. With help from a legal document assistant, you can always make changes with life milestones like marriage, kids, home ownership, and other events.


Why Should Young Adults Have Estate Plans?


As a young adult, contemplating how your passing would impact your family & their well-being is often difficult. However, estate planning at a young age protects your family members as well as your financial and even digital assets. Here are some reasons to consider an estate plan.


Protects Your Family


With an estate plan, you can set up the distribution of your assets through a living trust to spare your family from the expense of going through probate or dealing with creditors. By designating a trustee and beneficiaries, you can be sure that everyone is aware of your final wishes and are on board with them.


Secures Social Media / Digital Assets


A digital estate plan can allow you to plan how your family can handle your digital assets, including social media accounts and online payment or banking platforms. A designated person will be able to access these accounts and digital assets.


Protecting Your Children


According to Nolo Press, You can protect your children's future by making plans to ensure that they are financially secure. For instance, a Legal Document Assistant can assist you in the drafting of a Will where the guardian (or guardians) is/are appointed along with a trust document that names your children as beneficiaries but designates a trustee to handle the financials until they become of a certain age.


Lay Out End-of-Life Decisions


With an estate plan, you can give someone medical power of attorney if you become incapacitated. You can also include a healthcare directive and instructions for your burial.


Keep the State from Stepping In


Having an estate plan at a young age prevents a judge from deciding who gets what if there are no immediate heirs listed in a will or if a trust has not been set up. During the process of dividing your assets, your family may have to wait years to see the results and could have to pay thousands in probate fees. Also, the state would determine who gets custody of your children if you don’t leave any instructions in a will or create a trust.


Important Elements of a Young Adult’s Estate Plan


Estate plans can be as complex or simple as you need them to be. There are many essential documents you require to have a good estate plan. However, the following four documents should be a priority.


Will


A will is a legal document that specifies who you want to receive your money and property when you die and designates guardians of children and/or pets.


Living Will / Healthcare Directive


A living will consist of instructions for the medical care that must be followed if you are incapacitated due to terminal illness or injury. This could also state whether you wish to remain on life support or be resuscitated.


Living Trust


A living trust gives your designated trustee the authority to hold and distribute assets on your behalf. It also names your beneficiaries.


Life Insurance


Life insurance can help with the repayment of debts like auto loans, mortgages, or student loans. In some cases of married couples, it can help make up for lost income for a time to allow the surviving spouse to make financial adjustments or find a new job.


Get the Experienced Legal Support You Need


To know more about related estate planning services, consider consulting with the Legal Document Assistants (LDAs) at Monday Morning Trust. Our team is licensed, bonded, and legally permitted by the government to assist you in preparing your Trust and Will. While we can’t represent you legally, we can ensure that these crucial documents are drafted correctly and filed properly at your county courthouse.


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