If youâ€™re twenty-something and you think you donâ€™t need an estate plan, you are not alone.Â Most twenty-somethings donâ€™t realize that they needed an estate plan way back when they turned 18.
Who needs an estate plan?
Everyone age 18, or older.Â Everyone; even all those twenty-somethings.
What kind of estate plan does a twenty-something need?
Likely, a basic estate plan is all thatâ€™s necessary.Â If the twenty-something has children or owns a business, then a more complex estate plan is required.
Whatâ€™s in a basic estate plan?
Typically, a basic estate plan includes a will, financial power of attorney, medical power of attorney, HIPAA release, living will, and organ donation form.
When children are involved, what changes in the estate plan?
Once you have children, everything in life changes. Â Your estate plan changes as well.Â You need to:
- Name guardians, and successor guardians, in your will
- Appoint guardians in a child care power of attorney
- Authorize first responders to stay with your children in an emergency
- Analyze the need for life insurance
- Create a revocable living trust with protected trust shares for each of your children
How does owning a business affect my estate plan?
- You may need a buy-sell agreement
- You may need life insurance to fund the buy-sell agreement
- Research to determine whether your business is owned in the appropriate entity
- Be sure your business is properly insured for liability and business interruption
What about twenty-somethings who still live at home?
Even twenty-somethings who still live at home need an estate plan.
- If there is an emergency, your parents need to be legally authorized to make medical decisions on your behalf.
- If you need your parents to access your bank account, they need legal authorization.
- If you tragedy strikes and you donâ€™t want to be hooked up to machines to artificially extend your life, you need a living will as part of your estate plan.