To many people, estate planning is synonymous with advanced age. It is surprisingly common for people to choose to delay estate planning until they are close to retirement or until after they retire. While many people assume that they have years to address their legacy and their need for support in their golden years, people never know when they might have some kind of emergency.
Car crashes, sudden illness onset and a variety of other unusual circumstances can leave people vulnerable and unprotected. Instead of waiting until a specific age to establish an estate plan, many people might benefit from taking control and establishing documents sooner rather than later.
Getting started early is a smart move
Many young adults who have recently turned 18 have limited property. They may still live with and depend on their parents. They may not intend to move out or start families for years. Even so, they may benefit from creating an estate plan.
Estate plans for younger people often focus on personal protection. Young professionals and full-time college students may want to draft powers of attorney and advance directives. That way, the people closest to them know how to support them in an emergency and have the authority to do so.
A will becomes necessary once an individual has property in their own name or dependent family members. People can specify resources for their beneficiaries to inherit with wills. They can choose a personal representative to oversee estate administration. They can also name a guardian to provide for their children. Once a young professional has people who depend on them or assets that are valuable, a will or other testamentary instrument becomes necessary.
Marriage can also inspire people to establish estate plans. For some, divorce might be the reason they need an estate plan. After all, they no longer have a spouse to make medical decisions or handle financial matters on their behalf.
Those facing major medical challenges may also want to consider creating an estate plan or updating an existing one. At the latest, putting together estate planning documents in the years leading up to retirement is critical. People can review their resources and help protect themselves from the risk of incapacitation and the legal challenges that may follow their exit from the workforce.
Creating an estate plan early and then updating it as circumstances change is often the best approach. Adults of all ages may need to consider creating or updating the state plans as a means of protecting themselves and their loved ones.