Estate planning in your 20’s probably isn’t something you’ve considered too much especially if you are single or a married with no children. However, this may be a mistake and is often a misconception that you don’t need estate planning at this stage of life.
From the North Carolina Estate Planning Estate Planning Blog here are some tips for estate planning in your 20’s
Tips
- Singles. Unmarried persons may not have a concern about providing for a surviving spouse in the event of death or incapacitation, but may have a significant other, ailing parent, or relative they would like to leave their assets to. Having a will or revocable living trust in place can ensure that assets are left to the intended beneficiary. Moreover, an estate plan provides a legal framework for more than asset transfers. If an individual is diagnosed with a disabling condition or suffers an injury, who will make critical medical decisions or manage finances on their behalf? Estate planning documents such as advance directives and powers of attorney appoint a trusted person to oversee these matters.
- Child-free couples. Couples who have not yet had or do not plan to have children don’t need to rely on estate planning documents to choose a guardian or start a child’s 529 College Savings Plan. However, these couples still should consider developing regular estate plan reviews to ensure that their partner or spouse is provided for should an unexpected illness or death occur. Couples can complete living wills and powers of attorney to advise their partner or spouse on wishes concerning life prolonging measures and to ensure that their partner or spouse has authority to make medical decisions and manage financial matters on their behalf. They should also regularly review beneficiary designations on retirement accounts, life insurance policies, and other assets to reflect the name of their partner. Outdated designation forms could legally entitle a former partner or ex-spouse to the respective assets. Also, in North Carolina, married couples who own real property have the option of holding title as Joint Tenants by the Entirety, which can help prevent to creditor claims against one spouse from attaching to the property.
Action
1.Determine what estate plan items you need. At a minimum make sure you have designated beneficiaries on your retirement accounts:
2.Meet with an estate planning attorney to have legal documents drafted.
3.Update your estate plan periodically to make sure everything is up to date as your situation changes.
*As financial planners we do not create estate planning documents as these legal documents should be handled by an estate planning attorney. Our job is to provide education to our clients around estate planning issues and provide a recommendation on ways to align their finances with their estate planning goals and work with their estate planning attorney where necessary.
