Many people do not start to consider creating an estate plan until they have reached a certain age, started a family or built a career and a savings. But it is equally as important for younger individuals to be planning their estates as it is for older generations. The estate planning attorneys at SLH, have provided the following information to help Millennials get an early start on an essential plan.
No one likes to consider what would happen to their possessions and assets if they were to pass away—especially those individuals who are just beginning their adult life. But it is important for young adults to take some of the necessary steps now to protect their interests in the event that the unexpected happens. Begin by having a discussion with friends and family members about what you would like to happen to your possessions if you pass away or become chronically ill. Effectively conveying your desires to others will help to consciously outline what documents you will need to put together, in order to have your wishes legally protected.
Once you have organized your preliminary requests, an attorney can help you to decide what legal documents will properly convey them. The basic estate components that every individual with assets should have in place are:
- Life Insurance: Many adults in their twenties and thirties do not have an adequate savings account to support their loved ones if they pass away. Investing in a policy now will ensure that your loved ones are protected at a later time.
- A Power of Attorney: Establishing a power of attorney is important because the designated individual will be responsible for making decisions for you if you are unable to do so. This can include decisions regarding your health and your assets. Power of Attorney should always be assigned to an individual who understands and fully respects your wishes, and who will have your best interests in mind.
- A Will: This document is responsible for detailing your wishes, ranging from how you would like your assets and possessions to be divided to who is responsible for taking care of your children or pets in the event that you pass.
By preparing these three basic components now, you can reduce the risk that a court will decide how your assets and possessions will be divided at a later time. Further, as you grow older and accrue more assets, your estate will require additional complex planning and decision making. Creating a foundation to build off of when you are young will simplify the process in the years to come.
Consulting with an experienced estate planning attorney is the best way to start preparing. Navigating the legal details of estate planning can be tedious and difficult. An experienced attorney can offer valuable advice regarding how to execute your wishes, and will ensure that they are properly translated through legally binding documents. Contact the attorneys at Snee, Lutche, Helmlinger & Spielberger for more information on estate planning and administration.