Many people don’t make estate plans while they’re young. This is often believed because estate plans are perceived to only focus on what happens after someone passes away, which may not happen for years still.
However, there are many benefits of creating an estate plan while in your twenties, thirties and maybe even your early forties. Here’s what you should consider:
Child guardian
If you have children, as a parent, you want the best for their future. You want to ensure they get a good education, are well-fed and dressed and are prepared to take on life when they’re fully grown. One way you could do this is by creating a trust that ensures they’re financially well when you pass away.
However, it may be some years before your child is grown enough to take responsibility for their trust funds. So, as a young adult, how can your estate plan benefit your child? You could designate a child guardian in your will.
If you suddenly suffered a fatal accident or illness, leaving your child without a parent, then you may need someone to take up the role. That’s where a child guardian comes in. They may have the same responsibilities you have for your child, such as caring for their needs and wants, putting them through school, managing their health and fulfilling a religious upbringing.
Power of attorney
One of the biggest benefits of making an estate plan while you’re still young is naming a power of attorney. If you experience a traumatic accident or develop a medical condition that leads to you being incapacitated, then you may need someone to handle your personal matters for you. As such, a power of attorney could make financial and medical decisions on your behalf.
A power of attorney is also useful if you are of sound mind. You could name a power of attorney who handles financial matters while you’re not available. This can be extremely beneficial if you’re making an investment in a home, for example.
Are you considering making an estate plan? If so, there are a lot of legal matters you may need to be aware of that can ensure you’re making a valid estate plan.