Most people don’t think about estate planning until middle age. A sad reality of our world is that tragedy can strike unexpectedly. People as young as an adult in their 20s and 30s has the agency to prepare for the unexpected. There are a few key components that comprise an estate.
Power of attorney
Among the most basic actions you can take is to draft a power of attorney. A power of attorney will allow someone to make decisions for you if you become incapacitated. Now that you’re no longer a minor, your parents no longer have primary decision-making power over you. The power of attorney allows you to take control of your life and place someone whom you trust in charge.
Wills and trusts
Chances are that you will start to accrue some assets or begin a family by the time you’ve entered your 30s. A will allows you to declare how your estate will be divided in the event of your untimely passing. Wills also allow you to choose an executor to carry out your final wishes.
Not all assets have to be monetary. These assets can include homes or farms.
Many people establish trusts to transfer their assets and investments to their beneficiaries that can minimize estate taxes. There are many types of trusts to choose from to find the one that is right for you.
It’s never too early to start
Starting to plan your estate can mean facing your own mortality. No one wants to think about death but people do think of their loved ones. Proper estate planning means knowing that your kids would have money for an education or your spouse would have a roof over their head. Estate planning may be uncomfortable at first, but the decisions you make now can protect the people you care about.