Am I Too Young To Create An Estate Plan?
Are you in your twenties, thirties, or forties and wondering whether it is the right time to secure your assets with an estate plan? Most likely, you assume it is too early to start thinking of such, right? Well, that is the perception of millions of other people in their twenties to forties. But honestly, that is absolutely wrong! As long as you are past 18, you need to start taking responsibility for your resources.
Unfortunately, many believe estate planning is for the rich, wealthy, or the elderly. Caring.com’s 2019 research found out that only 1 out of 5 Millenials (18-34) had an estate plan, which is a serious concern.
So, What’s the Importance of Having an Estate Plan Early?
Unlike a Will Plan that only outlines what should be done in the event you are no more, an estate plan includes not only your wishes for when you do pass but also other documents that benefit you even when you are alive.
A Living Will
Life is unpredictable. You may get sick to the point that you cannot express yourself about the medical care you want to be accorded. In case this unfortunate incident happens, and you are unconscious, your family may go through great distress or misunderstandings trying to reach an amicable solution.
Fortunately, a Living Will allows you to outline what you want to be done during such difficult moments, and even during your end-of-life period.
Financial Power of Attorney (POA) document
As the name suggests, this document gives an appointed individual the authority to take charge of your finances when you are either critically ill, incapacitated, or dead. They can manage all your transactions, run your businesses, and make other financial decisions on your behalf. However, your power of attorney only operates within the confines of your pre-stated restrictions. This helps safeguard your wishes and assets.
Beneficiary Designations
The power accorded to this document is similar to that of a Last Will, and it serves as additional security to your finances and assets. This is where you outline “who will inherit what” when you die. Beneficiary Designations allows you to get granular about specific, highly valuable assets that need extra management care.
For instance, you may need to specify who should receive your life insurance funds, retirement income, and money from other sources.
The Bottom Line—Yes, Everyone Needs to Create an Estate Plan
Creating an estate plan is the ultimate solution to ensuring the proper management of your resources when you’re either incapacitated or dead. Since everyone will experience one or both of these events at some point, it is wise to prepare early.
Do you want to outline specific instructions on how your family should handle your resources, how your business should progress, or even which assets you would like donated to charity? Then an estate plan is quite necessary, regardless of your age or wealth.At Rep Law, we are here to offer you all the estate plan guidance you may need. So, why not embrace an estate plan and safeguard your resources?
