Estate Planning for High School Seniors
Turning eighteen and graduating high school can feel like a significant accomplishment — and it is! A lot of graduates are going off to college or contemplating about what the next steps in their lives are going to be. It’s a time filled with promise, excitement, and possibly a bit of anxiety also. You are on your own and in control of your choices, your education — and your financial decisions. Whereas it might feel a little too soon to start thinking about things such as wills and trusts, there are excellent reasons not to discredit proactive estate planning being a young adult. In fact, adults between eighteen and thirty-four are now more likely to have a will than middle-aged Americans.
You don’t have to be older or have a bunch of money to think about estate planning. Simply put, it’s just about choosing what you want to happen with your assets following your passing away, and guaranteeing you’re not leaving your family members and friends — or a judge — with the weight of deciding what they think you would have wished for. For useful advice and guidance on what your estate plan should look like consult a lawyer today.
At What Age Should Someone Think About Having an Estate Plan?
Individuals as young as eighteen can devise an estate plan because now, in the eyes of the law, they are thought of as adults and their parents aren’t going to make decisions concerning their healthcare and finances. Obviously, by the time you’re in your twenties and thirties, you should have a current plan in place.
Moving out of your parents’ house, getting married, purchasing property, or having children are all significant reasons you need some type of estate plan to distribute your assets and designate the individuals that are going to make decisions for you. The great thing about beginning so early is that it’s typically a fairly simple process since most young adults don’t have many assets. This provides a great opportunity to put a plan in place that you are able add to and alter as your life becomes more involved.
Why Young Adults Should Have Estate Plan
There are a multitude of reasons a young adult might want to consider devising an estate plan:
- When you live with (or own a home with) a partner but are not married, you can guarantee your assets will go to them.
- You can grant POA to an individual you trust if you pass away or become unable to communicate.
- You might have more assets than you perceive (a vehicle, jewelry, or family inherences).
- If you have a child, you should absolutely begin planning to guarantee that they’re financially taken care of and so you can designate their future guardian. If you don’t write out your wishes in official documentation, it will be up to the court to decide who is going to get guardianship and they might not have the same morals or parenting manner as you. (You can also do this for your pets)
- If you do have a considerable amount of assets, setting them up as a portion of a living trust is able save your family members and beneficiaries the trouble (and expense) of going through probate.
Important Aspects of a Young Adult’s Estate Plan
- Will: A standard will is the cornerstone of any estate plan, but it doesn’t do all you require it to and wills have to undergo probate anyway.
- Living Will/ Advanced Health Care Directive: This documentation can guarantee an individual you know and trust is going to make medical decisions for you if you become unable to do so on your own.
- Living Trust: A living trust functions in the same way as a will, but it bypasses the drawn out probate process by the transference of ownership of your assets inside a trust so they will not have to go through the court system.
- Life Insurance: A straightforward life insurance plan (which is unbelievably inexpensive for young adults) can assist in paying off debts like vehicle loans and/or private student loans.
Source:
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Peters, A. F. (2021, October 5). Estate planning for Young Adults. Estate Preservation Group. Retrieved February 14, 2022, from https://www.estatepreservationgroup.com/blog/estate-planning-young-adults/
Arizona Family Law
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