Estate planning might seem like something you don’t need to worry about until later in life, but getting started in your 20s can provide significant benefits.
Here are some key reasons to consider creating an estate plan at this stage.
Protecting your assets
Even if you don’t have substantial wealth, an estate plan can ensure that your assets are distributed according to your wishes, no matter how modest. Whether it’s your savings, car or even personal belongings, having a plan can prevent confusion and conflicts among your loved ones if something unexpected happens.
Health care decisions
In your 20s, health issues may seem like a distant concern, but accidents or sudden illness can happen at any age. Creating a health care directive or a living will allow you to specify what kind of medical treatment you would or wouldn’t want if you cannot make decisions for yourself. Additionally, appointing a healthcare proxy ensures that someone you trust can make decisions on your behalf if needed.
Appointing a power of attorney
A power of attorney gives someone you trust the authority to handle your finances and legal matters if you cannot do so. This can be crucial if you’re in a situation where you need assistance with financial matters due to illness or injury.
Avoiding legal complications
Without an estate plan, the distribution of your assets will be determined by state laws, which may not align with your personal preferences. Creating a will and other estate documents helps you avoid legal complications and gives you control over how your affairs are handled.
Starting estate planning in your 20s can give you peace of mind and protect your interests as you navigate adulthood.