Items such as trusts and powers of attorney typically become associated with the old and wealthy. However, younger people have begun to realize the importance of having a reliable estate plan. People as young as 18 can create a power of attorney and health care directive, so they are ready in case they ever become unable to make their own decisions related to health and finances.
You do not want to wait too long to create an estate plan. Here are some of the basic reasons you should look into creating a will early in life as you start hitting major milestones.
Benefits of certain job perks
When young adults begin their careers, they may need to associate beneficiaries with certain job perks. Your job may come with life insurance coverage and a 401(k) plan, and you will need to add beneficiaries for each account. Particularly if you marry while you are in your 20s or 30s, you will need to designate who will receive your assets if you die. You can create a will now, with the plan to change it as the years go on and your life continues to grow.
Early investment planning
There is no better time to think about your future than when you are in your 20s or 30s. Although retirement may seem far off on the horizon, you need to start saving for it now. You need to start thinking of how you will provide for your spouse and children down the road. Planning for retirement and creating your estate plan now is a savvy investment that will pay off in dividends later.
Even if you do not own a house or have stock options yet, you can still afford to create an estate plan. You likely own more than you realize, and you can create a will and trust that works for your specific situation.