Discussions about the importance of estate planning often focus on parents, or those preparing for retirement. It is easy for people to recognize why someone responsible for a child might need an estate plan. It is also easy to imagine how vulnerable someone can be later in life as they prepare for retirement.
Adults generally do not need to wait until they become parents or reach retirement age to think about an estate plan. In fact, anyone aged 18 or older might potentially benefit from the creation of a thorough estate plan. Why may new adults starting out in their careers or preparing for college need estate plans?
They require support in an emergency
Estate planning for young adults is often more about their own protection than the distribution of their property. Estate plans can include living documents that take effect in an emergency rather than after someone’s death. Once a child turns 18, their parents no longer have access to their medical records or any control over the care they receive.
The creation of an advance medical directive gives a young adult a space where they can discuss their medical preferences. Powers of attorney give them the chance to select someone to communicate their medical preferences to others. They can choose to empower a parent, a sibling or someone else that they trust. Those documents help ensure they receive appropriate support when facing an emergency.
Intestate succession rules are quite generic
Someone in their late teens or early twenties may have developed strong relationships with people other than their family members. They may have a long-term romantic relationship with their high school sweetheart or a roommate with whom they have shared most of their resources since moving out on their own.
When someone dies without a will, intestate succession laws oversee the distribution of their property. Usually, most, if not all, of their assets pass to their immediate family members. For young adults, that may mean that their parents inherit everything. Their friends and romantic partners do not have any rights. It is only through careful planning ahead of time that people can set aside certain resources for loved ones other than their immediate family members.
Creating an estate plan early in life and then occasionally revisiting it is a viable strategy for many new adults. Those who draft a will have protection now and also have the option of updating their documents in the future when their circumstances change.
