When you are in your 20s and 30s, you may be too busy living to think about retiring or dying. Therefore, an estate plan may not be high on your list of priorities. You may even see it as something that “old” people do. However, this is not correct.
It is never too early to make an estate plan, and the sooner you make one, the better because once you have it, it is simple to adjust it whenever your life circumstances change.
Even young, single people need an estate plan
There is always an excuse to put off creating your estate plan, so getting it done is a chore out the way. Here are a few reasons why it is wise to make an estate plan now:
- You could suffer a life-threatening accident: One critical element of estate planning is a health care directive. It allows you to specify if you want medics to give you life-saving treatment or keep you alive artificially in the event of severe illness or injury. If the thought of spending years in a hospital bed while your family visits your lifeless body appalls you, then put it in writing.
- You want the little you have to go to the people you care about: You may not have your own home or much money in the bank yet, but that does not mean you do not have things of value. If you promised your little brother your guitar one day, make it clear in a will. Then if you die unexpectedly, it ensures you keep your promise.
- An estate plan can help reduce tax on what you leave: Tax planning is an essential part of any estate plan. Without it, any assets you leave on death could diminish in value.
Creating your first estate plan when you are young will be quicker than waiting until you have more wealth. Once you have done it, you can revise it every couple of years and update it where necessary.