If you’re like most people, you think that estate planning is something that you can put off until later in life. This feeling can be amplified if you think that you don’t have many assets that are worth protecting through the estate planning process. Yet, procrastinating when it comes to estate planning is risky, and it could put you, your assets, and your loved ones at risk.
That’s why we encourage everyone, even young adults, to create an effective estate plan sooner rather than later. But how can an estate plan help someone who is younger and doesn’t have a ton of assets?
How estate planning can help younger adults
There are multiple ways that estate planning can help you, even if you’re not in the later stages of your life and facing retirement. Here are some advantages to the process:
- It accounts for the possibility of incapacitation: Nobody wants to think about incapacitation, but those who don’t put themselves at risk of being in a difficult position when they’re suddenly unable to make decisions for themselves. Through effective estate planning, you can name someone you trust to make health and financial-related decisions on your behalf if you’re unable to make those decisions for yourself.
- It can specify care for your children: What would happen to your children if you and their other parent pass away? That’s a hard question to think about, but it’s one that you want to answer if you want to ensure that your children are adequately cared for in the event that such a tragic outcome occurs. Your estate plan can be helpful here, as it can specify who will serve as your children’s guardian in this situation. This can provide clarity and prevent infighting among your family members.
- It can protect the assets you have: You might think that you don’t have many assets, but there’s a good chance that you have more than you realize. After all, many people have digital assets that they overlook, including social media accounts and photograph banks. You’ll want your loved ones to be able to access these assets, and you can specify how to do that in your estate plan. You can also use your estate plan to account for any assets that you might acquire in the future, although it’s always wise to revisit your estate plan, and you can even support a charitable cause that’s important to you.
- It can dictate care for your beloved pet: If you have a pet, you’ll want to make sure that it’s well taken care of in the event of your passing. Using your estate plan and a pet trust, you can set money aside for your pet’s future care and indicate who you’d like to take care of your pet at that time.
These are just some of the advantages of estate planning when you’re younger. There might be other perks that are specific to your situation, which is why now is a good time to assess your options.
Do you have additional questions about estate planning?
You can also find other resources online and in the library that may be beneficial to you. But given the complexities of many estate plans, some choose to seek the assistance of an experienced attorney. That decision is ultimately yours to make, but you should take comfort knowing that option is there if and when you need it.