If you’re a young professional, estate planning is likely low on your to-do list. You haven’t had time to accumulate many assets, you may not have any dependents and you think estate planning is only for older people.
Estate planning isn’t just for retirees or parents with houses and large bank accounts. It’s about protecting yourself and your loved ones. It’s also about making your wishes known.
Emergencies don’t have a schedule
Life is unpredictable. You think you know what will happen tomorrow and the next day, but what would happen if you were in a serious accident or became incapacitated? If you don’t have the proper documentation, your family will have to deal with legal obstacles trying to make medical or financial decisions on your behalf. Your estate plan ensures that your wishes will be honored and somebody will handle your financial affairs.
You may not have traditional assets like a house or car, but you likely have digital assets, such as social media accounts, digital photos, a website or a cryptocurrency wallet. Your estate plan can include instructions for accessing and managing your digital accounts.
Your estate plan doesn’t have to be huge or complicated. Here are the key components that every young adult should have:
- A will that outlines what happens to your assets after you die. You will also want to name an executor, the person responsible for carrying out your wishes.
- An advance healthcare directive that outlines your medical treatment preferences, such as whether you’d want to be kept on life support.
- A durable power of attorney so someone can take care of your financial affairs if you aren’t able to.
- Beneficiary designations for life insurance policies or retirement plans
- Guardianship for pets, allowing you to designate someone to care for your fur-babies. The California Probate Code even lets you allocate funds for their care.
Everyone can benefit from estate planning. It doesn’t have to be elaborate or take a lot of your time. Working with a legal representative can ensure your estate plan is done correctly and complies with California’s laws. As your needs change, they can help you keep it updated, as well.
