For those who are young, broke, or single, the idea of estate planning seems nonsensical. The average person in this position is going to be looking at making ends meet rather than planning for their future estate. Of course, this is why it is essential to speak to a financial advisor and make sure you are going down the right path.
For those who are in this boat, you want to think about your future as soon as possible.
This read is going to help answer the question about whether or not you should be setting up an estate plan in the future.
Simple Planning Is Key
Estate planning is not for the rich or old of society.
This is a misinterpretation of the regulations and the wrong way to approach estate planning. Instead, it is a tool used to make sure your future generations or family members are not left in stringent court battles, or things don’t unfold as you may have wanted them to.
This happens all the time, and even if you have minimal assets, it is always best to account for their future too.
Accidents can happen and being young doesn’t mean death isn’t a possibility. Of course, no one wishes to think about this, but estate planning is a must in such a situation.
What’s Required Right Now?
The standard will is great and a nice part of estate planning but you may want to think about current aspects of your life first.
What does this mean?
The idea is to have a three-step plan in place as soon as possible. This is going to include the following items.
1) Health Care Proxy
2) Power of Attorney
3) Living Will
Start with the health care proxy. This is a solution to make sure the right person is making all the decisions for your health.
If you were to get into a horrible car accident and can’t make medical decisions, it should be clear who is the next in command.
After doing this, you are recommended to have a proper power of attorney. This is going to include information about your financial matters and who is the next in command for making those decisions. It doesn’t matter how many assets you have; it is best to have someone’s name down.
The final step is a living will, where you look to set up a document stating what medical treatment you’re okay with and which ones you are not. This makes it easier for the decision to go the way you want it to.