Most folks believe they’ll live forever. Well, at least they plan as if they will.
Too many young adults—those under the age of forty—put off planning or assume that they don’t need it because they don’t have a significant amount of assets. But nothing could be further from the truth.
If you’re a part of the under-forty crowd, the following tips from an article in U.S. News can help you start the estate planning process:
Start now, no matter what you’re worth. Whether you have a little or a lot, you should start estate planning as soon as you can. Even if you have only debt, this is still the case. It is particularly important for people with children or other individuals who are financially dependent on them.
Let friends and family know your wishes. Talk to your friends and family about what you need and what you want to happen when you pass. This helps your loved ones understand and carry out your last requests without potential fighting.
Look at basic estate planning documents. In the case of most young people, complicated estate planning methods are typically not necessary. Basic estate planning documents, including life insurance, a last will and testament, a living will, and a durable power of attorney, are enough at this time in your life. Life insurance, in particular, is important, as it can replace lost income in the event of an untimely death.
Talk to estate planning professionals. When you’re starting out, the idea of estate planning can be overwhelming; however, you don’t have to go it alone. Speak with an experienced estate planning attorney and financial advisor, if necessary, to educate you and help you determine what you need.
Revisit your plan. Estate planning isn’t a one-and-done event. As your life changes—marriage, children, divorce, purchasing a house, etc.—your estate plan should change as well. In addition, make sure to keep an eye on your insurance policies, which are an important part of your estate plan.
If you have questions about beginning the estate planning process, please feel free to give my office a call. We would be glad to help you.