Estate Planning Must Haves for the 20-Somethings
Most young adults fail to think about their estate planning needs. Yet, all adults, no matter their age, should have some type of estate plan in place.
Young adults are not in need of anything complex; just a foundation that can be built by a few documents. Below are some key pieces of paperwork that can help jumpstart estate planning for the twenty-somethings:
- Health Care Advance Directive. This document allow individuals to name another person to make medical decisions on their behalf, in the event a physician determines they cannot make them on their own. Although many young adults may not see the need for such a document, in the event of an accident or unforeseen event, families may not be able to agree on a treatment or course of action without an advance directive.
- Durable Powers of Attorney. This allows a named individual to make legal and financial decisions on your behalf. Similar to health care directives, this is a “what-if” document,” and essential that adults give thought to these powers of attorney.
- Will. If an individual passes without a will, state law dictates who will receive assets. For those who are uncomfortable with this situation, it is necessary to draft a will to ensure the proper persons will inherit.
- Beneficiary Designations. Work related assets are often a young adult’s most valuable property. These types of assets are passed by beneficiary designations rather than by will. Young people are typically unaware of this, or do not get around to filling out the forms.
See Tracy Craig, 5 Financial Documents Every 20-Something Should Have, Financial Planning, Dec. 4, 2014.