In the hustle and bustle of youth, the thought of creating a will or estate plan may not be in someone’s mind. After all, most young adults are more focused on building their careers, exploring the world and enjoying their newfound independence.
However, overlooking the significance of estate planning can have far-reaching consequences. Learning more about wills and estates can help people in that age range.
Protect your assets
One of the primary reasons for young adults to consider estate planning is to safeguard their hard-earned assets. Whether you just bought a home, started to have serious savings or possess valuable heirlooms, you want to ensure these assets go to the right people if anything were to happen unexpectedly. Without a will, the state may distribute your assets according to its laws, which might not align with your wishes.
Care for dependents
Many young adults have dependents, whether they are young children or disabled family members. In fact, there were 22.9 million children between who ranged in age from newborn to five years old living in America as of 2021.
A well-thought-out estate plan can provide clear instructions on who should assume responsibility for your dependents if you are no longer able to do so. This can provide peace of mind and ensure that others take care of your loved ones in the manner you desire.
Avoid family disputes
Lack of clarity in estate matters can lead to family disputes and estrangements. By creating a will and estate plan, you eliminate ambiguity and reduce the likelihood of disagreements among your family members.
Make healthcare decisions
Estate planning also involves making decisions regarding your healthcare. A living will and healthcare proxy can outline your preferences for medical treatment and appoint someone you trust to make medical decisions on your behalf if you are unable to do so.
Minimize tax liabilities
A will and estate plan can also help you minimize the tax burden on your estate. By strategically structuring your assets and taking advantage of available tax exemptions and deductions, you can ensure that your children or other beneficiaries receive a larger share of your estate.
When facing medical troubles or other serious issues, you may initially panic. Knowing that you have taken steps to make your wishes clear can alleviate the uncertainty that can arise during these difficult times.