Many people believe that estate planning is only for seniors or people with a lot of money. This isn’t true, however. In fact, most young adults should have an estate plan in place. Because if you are a young adult and don’t have an estate plan, the court will make important decisions on your behalf should anything ever happen to you. In this article, we discuss estate planning for young adults.
At What Age Should I Create an Estate Plan?
If you are 18 years of age or older, you can create an estate plan. And although 18 may be a bit young for many people to begin estate planning, you should certainly consider creating an estate plan by your 20s or 30s. The reason for this is that people often buy property, get married, and have children by these ages, and these are all reasons to create an estate plan. In addition, a benefit to creating an estate plan at a young age is that it is usually a relatively straightforward process since most young people don’t have substantial assets.
Benefits of Estate Planning as a Young Adult
There are many benefits of estate planning as a young adult. For one, if you live with a partner but aren’t married, you can make sure that your assets pass to him or her. In addition, you can give someone the power to act on your behalf should you pass away or become incapacitated. There are also benefits to estate planning if you are a young adult with a child. For example, with an estate plan, you can name a guardian to care for your child should anything ever happen to you. In addition, an estate plan can ensure that certain assets pass to your child and that their inheritance is managed until they reach adulthood.
Key Components of an Estate Plan
Important components of an estate plan include:
- Last will and testament: A will is an important part of any estate plan. However, if you desire to avoid or minimize probate, you’ll need to include other documents in your estate plan.
- Trust: A trust is similar to a will, but it avoids the probate process by transferring ownership of your assets to a trust. Avoiding probate may or may not be a concern for your estate depending upon your individual circumstances.
- Living will and advanced healthcare directive: These documents give someone the legal right to make medical decisions on your behalf should you ever become unable to do so.
- Life insurance: Finally, a simple life insurance policy can help to pay off debts, such as private education loans and car loans.
Contact a Shelby County Estate Planning Attorney
If you are a young adult who would like to explore your estate planning options, Berkley Oliver PLLC is here to help. Our Shelby County estate planning lawyers create estate plans for adults of all ages and income levels throughout Central Kentucky. Regardless of your unique needs, our attorneys have the knowledge and experience necessary to create an estate plan that works for you. Please contact us to arrange a consultation with a Kentucky estate planning lawyer.