Only 25% of 18 to 34-year-old Americans have an estate plan in place, despite the increase of deaths among young people since the beginning of the pandemic. You need to prepare for the unexpected, even while you’re young.
An estate plan is a plan that delegates your belongings to your loved ones or organizations in the event of your death. Everyone has an estate. It includes everything you own, including your money, car, and objects.
It’s better to make an estate plan sooner than later. The best time to make one is now, as you never know what could happen to you tomorrow or a year from now.
When you turn 18 and graduate high school, you’re a legal adult. It’s important to have a plan in place, so you don’t have to stress about making an estate plan last minute when you’re older or sick.
Talk with an Inkwell professional today to discover the benefits of developing an estate plan at a young age.
Estate planning is important for people of all ages because it ensures that the people you love will receive your benefits after your death. Without an estate plan, nothing is stopping government agencies from taking your dog even though you wanted your family members to have it.
You might think, “I’m young and healthy, why do I need an estate plan now?”
Unfortunately, tragic accidents happen all the time that leave young people incapacitated or injured and unable to make their own decisions. It’s best to have a secure plan in place for these reasons:
If you just graduated high school, you’re most likely overwhelmed with financial decisions, student loans, and other new responsibilities. Those responsibilities only get bigger as you get older.
It’s best to be ahead of the game and take your finances into your own hands now, so you’re not overwhelmed in the future. Here are decisions you should make now so the future is less stressful:
Following this advice not only helps you while you’re in college, but it also helps you in the future. Opening a line of credit helps you after you graduate and want to make big purchases. Having a plan in place protects you and your estate if anything happens to you while you’re away at school.
Estate planning as a young adult seems scary if you don’t know your options. Here are some of the ways to plan for the unexpected at a young age:
A power of attorney grants a trusted individual to make financial and medical decisions on your behalf if you’re unable to make them yourself. Setting up power of attorney while you’re young ensures you’re taken care of if you’re incapacitated due to mental or physical illness—which happens at any age.
Consider giving a close friend or family member power of attorney so you know your finances are in the hands of someone you trust if something happens to you.
A will is an estate plan that assigns your belongings and finances to your loved ones in the event of your death. Wills must go through the probate process, a court-monitored process that determines if your will is valid or not, before giving your family the benefits you’ve left them.
Probate courts are expensive, so this might not be the option for you if you want to save your family money. On the other hand, a will allows you to divide your belongings the way you want, so just remember this type of plan comes with pros and cons.
Living trusts are estate plans that avoid the probate process. While they’re more expensive to set up, they keep your family from dealing with the court system which saves them money in the long run.
Estate planning for young adults is overwhelming but necessary since you never know what will happen in the future. Inkwell takes off the stress of the entire process by creating a plan that fits your personal needs.
We make estate planning simple, understandable, and less daunting for young people. We know you have a lot on your plate as a young adult, and we want to help.
Contact an Inkwell professional today to create an estate plan before it’s too late.