When you are in your twenties or early thirties, building your career and enjoying the freedom of a single life, estate planning might seem irrelevant. It is a common misconception that only married couples or older individuals must concern themselves with such matters.
Young singles have several compelling reasons to consider creating an estate plan.
1. It protects your assets
Even if you do not own a house or possess significant savings, you likely have some assets, such as a vehicle, bank accounts or personal belongings. Without an estate plan, state laws will decide the distribution of these assets. In New York, for instance, your assets may go to your closest relatives, which might not align with your wishes.
2. It gives you control over health decisions
Who will make medical decisions for you if you become seriously ill or injured? A healthcare proxy allows you name someone to make those decisions. Without this document, the court may appoint someone to decide for you, which may not reflect your preferences.
3. It allows you to plan for financial decisions
A durable power of attorney is another critical part of an estate plan. This document lets you designate someone to manage your financial matters if you become incapacitated. Without it, your family might need to go to court to manage your finances. This process can be lengthy and costly.
4. It safeguards your digital assets
You probably have social media accounts, email and other online assets. An estate plan can outline what happens to these digital assets. You can appoint someone to manage them or close them down according to your wishes.
5. It helps avoid probate
Probate is the legal process after an individual’s death, involving validating a will and distributing assets. This process can be time-consuming and expensive. An estate plan can help your family avoid or minimize the probate process, potentially saving time and reducing costs.
Do not wait until it is too late
No matter the size of your assets, having an estate plan in place can ease the burden on your family, saving them effort, finances and anxiety. It also gives you peace of mind, knowing your wishes will go according to your wishes.
Creating an estate plan does not have to be complicated or expensive. Many young professionals find that a basic plan meets their needs. As your life circumstances change, you can update your plan accordingly.