Estate planning is often thought of as a process for the elderly, those at or near retirement age, or those with adult children, to undertake. While this would seem to make the most sense at first glance, estate planning can actually be very beneficial for young adults. Let’s discuss a few reasons why you should not wait to begin planning your estate.
- Asset Distribution – When you’re young, it’s easy to see yourself as being nearly invincible or immortal. Human beings in general tend to underestimate the chances of bad things happening to them, particularly when they’re young. The reality is, life can be very unpredictable, and misfortune or tragedy can befall anyone at any time, which is why it is imperative to be prepared and have a plan in place. What would happen to your assets in the event of your death or incapacitation? Would your wishes be upheld? Estate planning documents can mitigate these issues and ensure that your assets are passed on to the recipients you selected.
- Guardianship – If something were to happen to you and your spouse, would you want the court to decide who cares for your child, or do you want to make the decision yourself? Drafting a will, or a pour-over will as part of a trust, allows you to name a person you trust to be the guardian of your children in the event of your incapacitation or death.
- Medical Directive – Creating a medical directive as part of a will or trust allows you to specify what actions should be taken in regards to your health in the event you are no longer able to make these decisions yourself due to serious illness or injury. Perhaps you’d rather not live on life support or have a feeding tube, or perhaps you want a DNR order. Without a medical directive, your loved ones might make decisions that go against what you want simply because they are unaware of your wishes.
- Power of Attorney – Assigning someone you trust the role of power of attorney allows that individual to handle financial matters on your behalf in the event you are unable to do so due to incapacitation or absence. This person can manage your bank accounts and stocks, pay your bills, sell property, and even file your taxes. When you regain the ability to do so yourself, you’ll have peace of mind knowing that all of your financial matters were addressed during your absence.
- Probate Avoidance – While this doesn’t necessarily impact you directly, proper estate planning documents can save your family money, time and headache in the event of your death. By having a plan in place, you can ensure your family is spared from having to pay thousands in court filing fees and attorney fees, as well as spend months in court battling for your assets, potentially causing deep rifts.
At Entrusted Estate and Asset Protection, we can help you tackle all of these issues, and make sure your assets are protected and your wishes are upheld. Call us at 248-781-8338 to schedule your free consultation!