Estate Planning in Your 20’s

At this age, most 20-somethings aren’t concerned with creating an estate plan. Frequently, they are just beginning careers, getting married, having children, working at paying off school loans and saving for their first house. However, once the twenty-something person does purchase a house, gets married or has a child, it is wise to think about planning how things should be handled in the event of a death or incapacity. Typically, a young person or couple may not think about this type of planning because the odds are that they have many more years to go until needing to prepare for this type of thing. Most young adults should at least have a will. Certainly, the young person should consider getting a durable power of attorney, health care power of attorney, a living will and a Will. Obviously, there are always exceptions, but unless the young person owns a business, owns substantial assets, is the beneficiary of a large trust or expected inheritance, or has a special needs child, there is not really a need for a trust. In most situations, a Will can effectively cover the needs that exist, provide for care for minor children, and properly dispose of assets. Typically, the young adult’s concern is not so much for the distribution of what property they may have, but more for naming a person as guardian of any minor children should both parents be deceased. Furthermore, documents like the living will or power of attorney allow family members to make decisions in the event of incapacity or serious medical conditions. The typical person in his or her 20’s should consider: