Forming an estate plan should not be something someone does in the final years of their life. Rather, estate planning should occur throughout one’s lifetime as circumstances change, since no one can predict when that planning might go into effect. Even young adults at the beginning of their careers can benefit from having a comprehensive estate plan, regardless of whether they have a spouse, children, or substantial assets to leave behind. A seasoned estate planning lawyer from Surprenant & Beneski, P.C. can sit down with you to discuss the advantages of having a tailored estate plan as a young adult.
Why Should Young Adults Consider Estate Planning?
Some young adults may view estate planning as something older people do, but even young adults can benefit from an estate plan. Consider speaking with an attorney about setting up an estate plan to protect your legal, financial, and health interests should an emergency arise due to an accident or sudden illness. An estate plan can also ensure that control over your assets goes to the people you want, including empowering family members to make medical/financial decisions if you cannot or passing on important items should you unexpectedly pass away. Estate planning can also help you resolve outstanding private student loan debts, especially if you have co-signors/guarantors on your loans.
Estate Planning Solutions for Young Adults
Young adults can benefit from considering various estate planning solutions, even at their current stage of life. Common estate planning tools used by young adults include:
- Last will and testament: Even if you have limited assets, a young adult can benefit from having a will to nominate someone to handle their estate if they unexpectedly pass away and to direct the distribution of assets to specific loved ones.
- Durable power of attorney: A durable power of attorney authorizes someone to make legal and financial decisions if you unexpectedly become incapacitated due to injury or illness. Empowering a trusted family member or friend through a durable power of attorney ensures that your bills get paid and other finances handled, even if you suffer a severe injury or illness.
- Advance directive: An advance directive authorizes someone to make medical decisions if you become incapacitated due to severe injury or illness. Your advance directive can also include documents to advise your healthcare proxy and medical providers regarding your preferences and wishes regarding healthcare and end-of-life care.
Estate Planning for Financial and Digital Assets
Many young adults starting their careers will set up financial accounts like bank/brokerage accounts, retirement accounts (e.g., 401(k), IRA), or life insurance policies. Estate planning for young adults can involve making beneficiary or pay/transfer-on-death designations to ensure that the assets in those accounts pass to loved ones according to the account holder’s wishes should they unexpectedly pass.
Many young adults have digital assets, such as social media accounts, NFTs, and cryptocurrencies, that an estate plan can manage. An estate plan can include provisions for securing access to digital accounts should the worst happen to a young adult, including documents listing their social media accounts and digital assets and providing an attorney-in-fact or estate administrator secured access to those assets’ login information. Many social media platforms provide settings that allow you to designate someone to gain access to your profiles should you suddenly become incapacitated or pass away.
Common Misconceptions About Estate Planning for Young Adults
Young adults may have many misconceptions about the suitability of estate planning at this stage of life. Some of the most common misconceptions we hear from young adults about estate planning include:
“I don’t need to do estate planning because I own nothing to pass on.”
Estate planning can involve more than deciding what happens with your money or assets. A comprehensive estate plan can ensure that the people you trust can handle decisions about your finances, legal affairs, medical care, or end-of-life care if you unexpectedly cannot do so.
“I’m too young for estate planning.”
Youth may come with a sense of invulnerability or a feeling that poor health won’t happen for decades, but serious emergencies can happen to people at any age. Should you unexpectedly become injured or ill, an estate plan ensures that you have the people you trust handling your affairs if you cannot do so.
“My family will handle things if the worst should happen.”
Although your parents or siblings may handle your medical, financial, or legal affairs, should the worst occur, an estate plan allows you to provide your loved ones with instructions regarding your wishes and preferences for how they should handle your affairs if incapacity prevents you from doing so.
How Can a Lawyer Help You Develop an Estate Plan?
Let an experienced estate planning lawyer from Surprenant & Beneski, P.C., guide you through your legal options and the benefits of estate planning, even at your age, by:
- Sitting down with you to discuss your current situation, needs, and goals to identify suitable estate planning solutions
- Helping you craft a tailored estate plan that includes a will, powers of attorney/advance directives, and planning for your digital assets
- Assisting you with executing your estate planning documents to ensure their enforceability
- Building a long-term relationship with you to help you review and update your estate plan as your life changes, including due to marriage, the birth of children, buying homes, and advancing in your career
Contact Our Firm Today to Learn More About Estate Planning
As a young adult, an experienced estate planning attorney can help you better understand planning strategies tailored to your circumstances, needs, and goals at your current stage of life. Building a relationship with a seasoned attorney can also provide a resource as you review and update your estate plan throughout your life. Contact Surprenant & Beneski, P.C. today for an initial consultation about why estate planning matters for young adults.
