Many people might think they will not need an estate plan until they are retired. However, people do not know what the future holds, so it is a good idea to start estate planning early.
Although young people may be in good health, this can change quickly. Forbes says that people should plan for the future so they can decide what happens to them in an emergency. Young people may become incapacitated after a bad car collision or other accident. If they put together an estate plan, they can decide who will make medical decisions for them in advance. Additionally, people may want to give some of their assets to charity after their death. Creating an estate plan allows people to make sure their family members donate this money.
When young adults put together an estate plan, there are a few things they should think about. According to U.S. News and World Report, it is a good idea to write a will. This allows people to decide what will happen to all of their assets after their death. If people do not write this document, then a court typically distributes assets to the surviving family members. Once people write a will, they generally need to appoint an executor who will carry out the terms of the document. People might also want to pick a durable power of attorney to manage their finances if they are incapacitated.
Additionally, some young people may have retirement accounts and life insurance policies. They typically need to choose a beneficiary for each of these accounts. People may also want to include their student loans in their estate plans. Some loans may not be forgiven after death, so it is a good idea for people to consider what will happen to this debt.
