Estate Planning for Young Professionals: Why It’s Never Too Early to Start

Learn how estate planning can benefit you and your loved ones, no matter your age or income level.

What is estate planning and why do you need it?

Estate planning is the process of creating a legal plan for how your assets and affairs will be handled in the event of your death or incapacity. It can include documents such as a will, a trust, a power of attorney, a health care directive, and a beneficiary designation.

Many young professionals may think that estate planning is only for the wealthy or the elderly, but that is not true. Estate planning is important for anyone who wants to protect their loved ones, their property, and their legacy. Here are some reasons why you should start estate planning as soon as possible:

• You can ensure that your assets go to the people or causes you care about, instead of being distributed by the state according to a default formula. Without a will or a trust, your assets will be distributed according to state laws, which may not reflect your wishes or your family’s needs. You may also lose the opportunity to minimize taxes, avoid probate, and protect your assets from creditors or lawsuits.
• You can name a guardian for your minor children. If you have children under 18, you need to designate who will take care of them if you and your spouse or partner die or become incapacitated. Otherwise, the court will appoint a guardian for them, which may not be someone you would have chosen.
• You can appoint someone to manage your affairs. If you become unable to make decisions for yourself due to illness, injury, or disability, you need to have someone who can act on your behalf. A power of attorney can authorize someone to handle your financial and legal matters, while a health care directive can specify your medical preferences and name someone to make health care decisions for you.
• You can support a cause or a charity. Estate planning can also allow you to leave a lasting impact on the world by donating to a cause or a charity that you care about. You can set up a charitable trust, a donor-advised fund, or a bequest to make a difference in your community or beyond.

How to get started with estate planning?

Estate planning may seem daunting, but it doesn’t have to be. Here are some steps you can take to get started:

• Take inventory of your assets and liabilities. Make a list of everything you own and owe, such as bank accounts, investments, real estate, vehicles, loans, credit cards, etc. This will help you determine the value of your estate and identify any potential issues or gaps.
• Review your beneficiary designations. Check the beneficiary forms for your life insurance, retirement accounts, and other assets that can pass outside of your will or trust. Make sure they are up to date-and consistent with your overall estate plan.
• Consult a professional. Estate planning is not a DIY project. You need to work with a qualified estate planning attorney who can advise you on the best options for your situation and draft the necessary documents. You may also need to consult a financial planner, an accountant, or a tax advisor to optimize your estate plan.
• Communicate your wishes. Once you have your estate plan in place, make sure to share it with your family, friends, and other relevant parties. Let them know where to find your documents and who to contact in case of an emergency. This can help avoid confusion, conflict, and stress in the future.

Conclusion

Estate planning is not something you should put off until later. It is a smart and responsible way to take control of your life and your legacy. By starting estate planning early, you can ensure that your wishes are honored, your loved ones are taken care of, and your assets are protected. Contact us today to schedule a consultation and get started on your estate plan.