Estate Planning Tips for Young Adults

Many young people assume that they don’t need an estate plan until they have a family or significant assets to protect. However, once you turn 18, it’s time to put a foundation in place on which you can build an estate plan for your future. 

If you are a parent of an 18-year-old, it’s time to make an appointment with your estate planning attorney. If you are a new 18-year-old yourself, give Margerie Law a call  to get started. 

Why young adults need an estate plan

When you’re 18, you probably feel invincible. You are healthy, strong, and confident, with your whole future in front of you. But anyone can have an accident or an unexpected illness, so it is best to have a plan in place in case something like this happens to you. 

Another reason it is important to have an estate plan in place when you turn 18 is that, at this age, your parents lose the ability to make decisions on your behalf. If you were to become incapacitated and end up needing medical care, your parents would not legally be allowed to help make those decisions or even find out information about your condition; the only person who could do that is a spouse or a healthcare power of attorney. The person in this role is charged with making important treatment decisions for you and access necessary information and records. 

What a young adult’s estate plan should look like

An estate plan for a young person without children of their own or significant assets to protect is relatively simple, containing just a few important elements: 

• Durable financial power of attorney. Should you become incapacitated, a durable financial power of attorney is the person who can act on your behalf in making financial decisions. As part of the estate planning process, you decide who this person is; just make sure it is someone you know and trust. You should also make them aware that you are naming them to this role and feel confident that they understand your wishes should something happen to you.

• Durable healthcare power of attorney. This may be the same person as your financial power of attorney or it may be someone different. In this role, you choose a trusted person to make healthcare decisions on your behalf should something happen and you are unable to make them yourself. Again, you will want to make sure this person knows you have chosen them for this role and understand the responsibilities therein.

• HIPPA authorization. This is a simple document you sign that gives your physicians the ability to share updates on your health situation should something happen to you. This document ensures your family or other loved ones can be in the know about your condition in case of an accident. 

• A Will. While you may not have a lot of assets at such a young age, it is still important to outline what should happen to the money and belongings you do have in case you pass away. If you do not outline your wishes in a will, it is up to the state to make these decisions on your behalf.

• A comprehensive list of personal information. Once the above elements are in place, it is important for you to make a list of all financial record locations, accounts, passwords, and any other important information and let someone you trust know where to find them. If you become incapacitated or pass away, having this information in one place will make things much easier for your loved ones. This list should include everything, from social media to bank accounts, and be stored somewhere highly secure. 

How to get started estate planning in Wisconsin

The best place to start is by seeking out an experienced estate planning attorney to help guide you in this process. The estate planning attorney you choose now may stay with you throughout your life, helping evolve your estate plan as your life grows and changes. 

Here at Margerie Law, I specialize in helping young people and families build estate plans to protect their future. I do my best to make the process easy and stress-free. You are the expert on your own life, and when you pair that with my passion for estate planning, we will make a great team. Give me a call to get started today.