From graduating college to starting a family and everything in between, your 20s and 30s can be an exciting yet uncertain time. Having an estate plan in place is one way young adults can gain control of their future no matter what life throws their way. Here are some estate planning essentials to consider.
Execute a Will and Trust – Regardless of your age or level of wealth having a Will and Trust in place is essential to protecting yourself and your loved ones by allowing you to allocate your assets how you choose and name a person you trust to make decisions on your behalf. You should consider creating or updating an existing estate plan following major life events like buying a house, getting married, or having children.
Name a Guardian for Minor Children – Though difficult, addressing minor children's guardianship is essential for those just starting a family. If parents do not select the desired party to serve as their children's designated guardian in case of an emergency, a judge will likely be left to decide what is best. Naming a guardian in your Will ensures this critical decision remains up to you.
Designate Beneficiaries on Retirement Accounts – Any savings accumulated in retirement accounts will need to be passed to a predesignated beneficiary. By determining a recipient of those assets, you can proactively prepare loved ones for intimidating financial developments in the wake of an unexpected loss. Beneficiary designations should be reviewed following key life events such as marriage, divorce, birth or adoption of children, or the death of a loved one.
Assign a Power of Attorney for Healthcare and Property – Executing a power of attorney for property and healthcare ensures proper representation in the event of an emergency, with a trusted person designated to make necessary decisions on your behalf.
Originally published 23 May 2023.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.