Starting Estate Planning
When you’re young, you may not want to think about your estate plan. Regardless of your age, however, it is critical to think about how you want to divide your assets if you die or how you want someone to handle your medical care if you cannot. Here are some tips on how to plan your estate in your 20s, 30s, and 40s.
Estate Planning in Your 20s
In your 20s, you are less likely to have an estate plan. You may not have many assets in your 20s, but you have to keep in mind that your parents can no longer make healthcare or financial decisions for you. To keep yourself protected, you should have a healthcare directive or power of attorney. A healthcare directive specifies your wishes when it comes to your health if you can no longer make decisions for yourself.
Estate Planning in Your 30s
A power of attorney names someone that you trust to make decisions for you. The most important type of power of attorney is the healthcare power of attorney. You may want to choose a family member or spouse to be designated to care for you if this need arises.
You should have more assets as you enter your 30s. You may have a family of your own, a home and other financial assets. When you are in your 30s, it is important to meet with a lawyer to begin your estate plan. This is especially important if you have young children. When you have young children, if something happens to you and your spouse, the court needs to know your wishes. You should have an appointed guardian. Consider setting up a will that specifies who inherits your assets and a trust that will transfer your assets to someone you choose.
Estate Planning in Your 40s
Once you are in your 40s, you should have the same documents together that you had in your 30s. In addition, you may want to begin talking to your parents about their estate plan. A lot of people in their 60s, 70s and beyond do not have a thorough estate plan. Many people do not have a will at all. In your 40s, you may want to focus on helping your parents put together their estate plan, as long as yours is together too.
When you’re young, it is easy to forget about estate planning. After all, you do not want to think about what could happen if you were incapacitated. No matter your age, however, it is important to have some form of an estate plan. To find out where you should be with your estate plan, consult with an estate planning lawyer such as Kaplan Law Practice as soon as possible.