“Adulting” is all about making the right decisions to safeguard one’s present and support one’s future. No wonder it can be daunting to many young people who are only just beginning to navigate the complexities of adulthood and financial freedom. As a result, many young adults can’t be bothered to take certain steps that are for their own good — and therein lies the rub.
However, the fact is that you never really know what the next day will bring, let alone what the future holds. And as you leave the mantle of your parents’ protection, it becomes very important to start looking out for your welfare, as well as the assets that you’re starting to build. This is where estate planning comes in, and Kraft Elder Law shows you how to start.
Cover your assets, small or otherwise.
No doubt, one of the things that keeps young adults from bothering with estate planning is that they often think they don’t have enough assets worth protecting at this stage in their lives. But the fact is that even if you’re 20 or 30, you do, in fact, have assets. These are your bank accounts, your car or home, and the stuff you buy, and you have to be concerned about what will happen to them should something happen to you, such as sudden death or serious injury.
In this regard, one very important aspect of estate planning that you should definitely consider is the power of attorney. Executed while you’re of sound mind and body, this is a document that can be as broad or as limited as you want it to be. In a nutshell, you appoint a trusted agent — a parent, spouse, or relative, perhaps — to manage your finances, running the gamut from your bank accounts to student loans, if you’re legally unable to do so. Without a power of attorney, your family will have to wait for a court-appointed conservator or guardian to manage your affairs, which can be a complicated and painful process.
Guarantee that the right medical decisions are made.
Equally as important as thinking about your financials is making medical arrangements, according to the Financial Planning Association. Even when you’re in the pink of health, you have no control over what might happen to you. For instance, you may find yourself being unable to safely live alone in your home any longer due to medical or other issues. This calls for deciding whether to bring in-home healthcare services or to move into a skilled nursing home or other care facility.
Because the future is uncertain, you’ll want to assign a healthcare proxy or create a living will. Regardless of which one you choose as part of your estate planning efforts, the premise remains the same — to ensure that decisions are made in your best interests when you’re somehow incapacitated.
The American Bar Association notes that both documents have some substantial differences. A healthcare proxy (a.k.a., durable medical power of attorney) lets you delegate to a trusted person all medical decisions (from treatment to end-of-life decisions) that you’re unable to make on your own if, say, you’re in a coma. A living will, on the other hand, is a written expression of your specific wishes in certain medical circumstances, such as whether or not you want life-sustaining treatments when you’re gravely ill or injured, for instance.
Plan your funeral in advance — it’s only practical!
Finally, planning your own funeral is also an integral part of estate planning. Of course, as a young adult, this is something that may not even cross your mind. But the fact is that it does have some very important benefits, such as sparing your family the added grief and heartache of being left with a financial burden, should you pass before your time.
With this in mind, consider purchasing burial insurance or making other financial arrangements, just in case. As you sort your options, it’s a good idea to also account for loans and other debts on top of the cover for final arrangements.
Suffice it to say, estate planning can be an important part of adulting. Moreover, not only will it benefit you, but it’s a thoughtful way to look out for your family, as well.
