When you are a young adult, creating an estate plan is probably the last thing you think about. However if you have had some recent big life changes, it is something that you need to consider. Below is a little introduction on what is evolved in estate planning for a young adult.
What is an Estate Plan?
A will or trust gives specific instructions on how to distribute your estate after you have passed away. With an estate plan, your property would be divided according to you, not the court.
Why is an Estate Plan Important?
Without a will or trust, your estate would be placed in he hands of the state. That means the court would decide what to do with your property. This could mean a long, frustrating, and potentially expensive struggle for your family. When you are in a committed relationship, own real property, or have recently had a child then its crucial that you have an estate plan in place.
What is Included in an Estate Plan?
There are several important documents that are included with proper estate planning. These include:
- The Will- This is the instruction manual for how your assets will be divided, who your children will live with, any other distribution of personal items.
- Medical Power of Attorney- This gives your family permission to make medical decisions on your behalf.
- Directive to Physician- Also called a ‘Living Will’, this gives instructions on life sustaining care and other end of life decisions.
- General Power of Attorney- This form gives permission to an appointed person to handle your finances when you are unable to.