Basic estate planning steps for young people
It’s no secret that most estate planning services are directed toward people aged 40 and over. After all, this age group is more likely to have a substantial disposable income, have children and be closer to retirement than people in their 20’s. Nevertheless, as we have noted in some of our prior posts, it is never too young to think about estate planning.
So if you are in your 20’s and early 30’s and are essentially just starting out, what can you do to begin an estate plan? This post will highlight some basic steps.
Start with a basic list of wishes –A simple set of basic rules to govern how you want your belongings transferred will suffice.
Decide who will make decisions on your behalf – Car accidents are responsible for seriously injuring people under 30. Because of this, it is a good idea to have a document that establishes who will be able to make decisions for you in the event you are incapacitated. A power of attorney or health care directive can ensure that important decisions are made with your wishes in mind.
Name a guardian if you have kids– While you may have a number of people who will be willing to take care of your children in the event the unthinkable happens, it is a good idea to establish a guardianship agreement. This agreement can set forth specific directions for the guardian, including how money shall be distributed and who will make major decisions on the child’s behalf.