Estate Planning for Young Adults: Why It’s Important and What You Need to Know
When you’re in your 20s or 30s, it’s easy to think that estate planning is something you don’t need to worry about until you’re much older. However, the truth is that it’s never too early to start planning for your future, no matter how young you are. In this blog post, we’ll explore why estate planning is important for young adults, and what you need to know to get started.
Why Estate Planning is Important for Young Adults
Estate planning is not just for the wealthy or the elderly. It’s for anyone who wants to protect their assets and ensure that their wishes are carried out in the event of incapacity or death. Here are some reasons why young adults should consider estate planning:
- Protect Your Assets: You may not have a lot of assets yet, but you still have assets that need protection. Whether it’s a car, a bank account, or personal property, estate planning can help ensure that your assets are distributed according to your wishes.
- Ensure Your Health Care Wishes Are Followed: If you become incapacitated and are unable to make your own medical decisions, estate planning can ensure that your health care wishes are followed. This includes designating a trusted person to make decisions on your behalf, and providing them with guidance on what you want.
- Protect Your Digital Assets: In today’s digital age, we all have digital assets, such as social media accounts, online banking, and email. Estate planning can help ensure that your digital assets are protected and that your loved ones have access to them if something happens to you.
- Avoid Intestacy Laws: If you die without a will, your assets will be distributed according to the intestacy laws in your province. This may not align with your wishes, and could lead to disputes among your family members.
What You Need to Know to Get Started with Estate Planning
Now that you understand the importance of estate planning, here’s what you need to know to get started:
- Make a List of Your Assets and Debts: Start by making a list of all your assets and debts, including bank accounts, investments, real estate, and personal property. This will help you get a clear picture of your overall net worth and what needs to be protected.
- Choose Your Beneficiaries: Decide who you want to inherit your assets when you die. This could include family members, friends, or charities.
- Create a Will: A will is a legal document that outlines how you want your assets distributed when you die. It also allows you to name an executor who will manage your estate, and a guardian for any minor children.
- Consider Powers of Attorney: Powers of attorney are legal documents that allow you to designate someone to make financial and/or medical decisions on your behalf if you become incapacitated.
- Review and Update Your Plan Regularly: Estate planning is not a one-time event. You should review and update your plan regularly, especially when there are changes in your life, such as marriage, divorce, or the birth of a child.
Conclusion
Estate planning is not just for the elderly or the wealthy. Young adults can benefit from estate planning as well. By taking the time to plan for your future, you can protect your assets, ensure your health care wishes are followed, and avoid disputes among your family members. So, if you haven’t already, start planning today.