Estate Planning for Young Adults
Are you sending off children to college this year? Or maybe they have finished college and are starting a new job? Congratulations on helping them fly the coop and set out on a life of independence.
Something that you may have overlooked in the process of helping them transition to these new stages in life is encouraging them to get basic estate planning documents in place so that they can be taken care of in the worst case scenario. It is common for young people to feel like they are invincible but alas they are not. And they are not immune to any of the challenges that all of us face. Accidents happen and we have insurance policies in place for a reason.
What kind of advanced planning documents should a young person with basic to few assets have set up?
A will - a will indicates who the young person’s assets will go in the event that he or she passes away
An advanced healthcare directive - this document would be used by an appointed agent such as a parent, relative or trusted friend to step in and carry out medical decisions in the case of emergency or incapacity
Durable power of attorney - this document would be used by an appointed agent to step in and handle financial and legal affairs in the event of emergency or incapacity
What else could be done to protect a young person in case of emergency?
Make beneficiary designations on bank accounts
Use a password vault - this tool allows for all passwords to be stored in a secure location and shared with a trusted person in the event of an emergency
Check legacy settings on social media
When it is time for you to get your own affairs in order, be sure to encourage the young adults in your life to do the same!
