Those in their 20s and 30s are strongly encouraged to create an estate plan. A lot can be accomplished in a few simple steps, says Wealth Advisor in the recent article, “Estate Planning Isn’t Only for the Old and Wealthy.”
First, people can draft a will to provide directions regarding what happens to their assets, such as who will inherit both financial and personal items. Virtual assets like social media accounts should also be included. You should make a list of usernames and passwords for all your accounts and be sure that a trusted relative or friend has access to it.
Another important part of estate planning is to designate the beneficiaries for all company-sponsored life insurance and 401(k) plans to avoid probate issues. You can also set up a payable-on-death account from your bank.
As part of estate planning, you should also name a healthcare proxy and a general durable power of attorney. These two documents allow your trusted agent to make medical and financial decisions, in the event you’re incapacitated. If you want to give your proxy specific instructions, create an advance directive, known as a living will.
As you work through these actions with your estate planning attorney, you’ll see that estate planning is not just for the old and wealthy.
It can bring you peace of mind and provide clarity to your loved ones and family, if you should pass away unexpectedly.
Make a point in the New Year of sitting down with an experienced estate planning attorney and addressing your estate plan.
Reference: Wealth Advisor (December 20, 2018) “Estate Planning Isn’t Only for the Old and Wealthy”