Estate planning: Not just for the older population
Estate planning is presumed to be for older people who are preparing for a time when they will no longer be around. They have built up assets to protect and possessions to pass on to loved ones.
Drafting a will and establishing a trust is not solely for those who are middle-aged and older. Many reasons exist why younger people – some just starting their careers – should have documents in place in the event of a worst-case scenario.
Current Events Changing the Dynamic
The current pandemic cannot be discounted when looking at the future. What is not known about coronavirus remains more than is known, for now. The fatal virus continues to stricken and kill people, even those who are younger should consider the possibility of having plans in place.
Establishing an estate plan is not complicated. Even twentysomethings have checking and savings accounts, credit cards, 401ks, and personal possessions. Protecting those assets combined with a healthcare proxy and power of attorney would ease the stress loved one’s experience should a health emergency occur. Also, pets who they consider to be their “kids,” can have money set aside for their care as well.
Financial professionals theorize that an estate plan plants the seeds for sound strategies when it comes to short and long-term financial planning. Habits become routines that create a path of responsible money management long into the future. And even if they live that long life, they have the security that came with smart decisions made decades earlier.