Estate Planning in Your 20s and 30s
For many in your 20s and 30s, planning for your eventual death isn’t exactly top of mind. Whether it’s because you feel like we have plenty of time ahead, or because we’re busy building careers and families, estate planning often gets pushed to the bottom of the list. I must admit to putting off my own planning for similar reasons.
It wasn’t until friends my age passed away that I realized how critical it is to protect my family in case the unexpected happens. At the very least, I wanted to ensure that my family wouldn’t have to worry about finances during a difficult time.
Whether you’re recently married, starting a family, or have been raising kids for a while, estate planning is important. We may not have accumulated as many assets as our parents or grandparents, but we have just as much to protect—especially our children and spouses.
The good news is that your plan doesn’t have to be complex or expensive to start. You can begin with the essentials and build from there as your financial situation improves. Here are some key documents to include in your estate plan:
1. A Will
A Will specifies who will inherit your belongings, but if you have young children, its most crucial function is to name their “backup parents” (legal guardians). Without a Will, the court will decide who raises your children—likely without insight into your wishes or an understanding of your family dynamics.
2. A Living Will
A Living Will is different from a traditional Will. It outlines your preferences for medical treatment if you’re in a situation where death is imminent or if you’re in a persistent vegetative state. This ensures your wishes are followed regarding life-sustaining treatment.
3. Financial Power of Attorney
This document allows you to appoint someone to manage your financial affairs if you become incapacitated. Your designated person can pay bills, manage assets, handle creditor issues, and make other financial decisions on your behalf.
4. Health Care Power of Attorney
A Health Care Power of Attorney gives someone you trust the authority to make medical decisions for you if you are unable to make them yourself. This document also allows them to access your medical records, ensuring they have the information they need to make informed decisions about your care.
5. Life Insurance
Life insurance is an affordable way to ensure that your family won’t be left with a financial burden if something happens to you. It can be used to pay off debts, cover living expenses, or provide for future needs like retirement and education costs.
Why Estate Planning in Your 20s and 30s Matters
Having an estate plan in place provides peace of mind that your family will be protected if something unexpected occurs. A plan like this is simple to create and can be adjusted as your life circumstances change. Whether you’re in Arizona, Texas, or Utah, estate planning is a crucial step toward securing your family’s future.
If you’re ready to protect your family, contact us today to schedule a free initial consultation. We’ll discuss all your options and help you take the next steps to create a plan that fits your needs.