Top 5 reasons for young adults to start estate planning
A lot of young people think that estate planning is something you put together later in life when you can see a clear need for it. But procrastination is one of the biggest mistakes when it comes to estate planning. You never know when something is going to go wrong, and if you’re unprepared, then you and your loved ones could be left in a difficult position if you don’t have an effective estate plan in place.
That’s why in this blog post we want to take a closer look at why even young adults need to consider developing a thorough estate plan. Hopefully then you’ll have a better idea of how the estate planning process can benefit you and why now is the time to start getting yours together.
Why estate planning is important for young adults
As a young adult, you might feel like an estate plan is unnecessary given your limited resources and your health. But here are some of the top reasons why you need to consider creating an estate plan sooner rather than later:
- Asset distribution: Even if you think you have a small estate, you probably possess more than you think. Sure, your bank accounts and other financial resources will come into play once you pass away, but so, too, will any sentimental items that you possess. By creating an estate plan that at least utilizes a will, you can ensure that those assets are passed down as you see fit.
- Your children’s care: If you have children, then your estate plan is one way to specify who will care for them if both you and their other parent pass away. This can help avoid familial infighting, heated custody battles, and ruined relationships. It also gives peace of mind knowing that your children will be cared for by someone you trust.
- Incapacitation is a real possibility: Even though you’re young and healthy now, you could suddenly become incapacitated following a car accident or the onset of a serious medical condition. If you’re unfortunate enough to find yourself in that position, you’ll want someone you trust making important life decisions on your behalf. This can include everything from your medical care to major financial decisions. Through your estate plan, you can name who you want to make those decisions for you.
- Asset protection: If you have a fair number of assets, then you’ll want to ensure that they’re protected from creditors as much as possible. After all, if you have significant debt, then your sudden passing can result in your estate being quickly gobbled up by these creditors, which could leave your loved ones with nothing. Fortunately, though, you can avoid this from happening through careful use of estate planning vehicles, such as various trusts.
- Peace of mind: Estate planning is a major step. It might seem daunting and even unnecessary right now, but once you’ve created your plan, you’ll probably feel better knowing that your affairs are in order.
Are you ready to create your estate plan?
If so, then don’t hesitate to read up on the various estate planning tools that you can use. Education is power, so don’t be afraid to ask for help when trying to figure out which options are best for you.
We know that thinking about your own mortality is difficult. But estate planning is necessary if you want to protect yourself, your assets, and your loved ones. That’s why it’s best to get to work on it now without further delay.