You may believe that estate planning is something you address when you are nearing retirement. However, you can start an estate plan at any time.
A comprehensive plan incorporates many areas of your life, not just retirement.
Why do you need an estate plan?
If you do not create a strategy detailing what happens to your assets, they may not end up where you intend. There are many legalities regarding managing your property and accounts following your death. Without a thorough plan, your family could face lengthy court processes and financial losses while handling the specifics of your estate. You can take steps to ensure they receive assets with minimal challenges and reduced estate taxes.
Anyone can create an estate plan, regardless of financial standing, marital status or age. If you are single, your estate plan can ensure your parents have access to your bank accounts and possessions if something happens to you. It can also help your family pay funeral expenses.
What do you include in your estate plan?
Your plan should identify the distribution of your assets, your advanced health care directives and who can make decisions if you become incapacitated. You can incorporate many documents, including:
- A will or trust
- Named beneficiaries
- A durable power of attorney
- A health care power of attorney
- Designated guardianships
Building your plan is an ongoing process. Over time, you will update it as necessary to define your wishes regarding your financial holdings and health care. Developing an outline for your assets protects your loved ones, whether you are just starting in the workforce or nearing retirement. You can start planning your estate at any age.