At this point, you probably think that estate planning doesn’t suit you. Maybe it’s because you’re not old enough or might have no assets to maintain and manage. Well, you might wish to think again about a comprehensive guide to estate planning by age group.
Many people think that estate planning is not a grave necessity until they turn old or become wealthy. However, that’s not the case. In fact, people of varying ages should establish an estate plan best suited for their needs—from simple for someone in their 20s to a well-funded trust plan for someone in their 60s.
A Comprehensive Guide to Estate Planning by Age Group
Estate planning is crucial for all ages. Whether you’re someone who just turned 20 years old or thinking about retiring, a well-crafted estate plan will help you manage your assets, take care of your loved ones, and decide what to do during an emergency. That said, here are some key considerations worth looking at when developing an estate plan at every age:
What To Do In Your Early 20s
Once you celebrate your 18th birthday, your parents will lose their authority to decide for you. This is especially true when it comes to making financial and healthcare decisions. Therefore, make sure to consult your asset protection attorney and get the following documents as soon as possible, such as:
- Power Of Attorney: This allows you to name someone who will make decisions when you cannot. Also, it comes in different types, but what you need to consider the most is healthcare and financial Power of Attorney.
- Healthcare Directive: This allows you to specify the action to be taken when it comes to your health if you cannot make decisions for yourself.
- Healthcare Surrogate Designation: This allows you to name someone that will make healthcare decisions on your behalf. Also, it’s only used at certain events when you cannot decide for yourself.
- Living Will: This document is used when you’re still alive. It includes medical treatments you don’t want to be use to keep you alive, such as resuscitation techniques and organ transplants.
What To Do In Your 30s
Personal life and finances often shift by the time you reach your 30s. At this point, you probably have a dream home, a loving family, and other financial assets to manage and maintain. Also, this is the best time to explore the legal devices best suited for your current circumstances to ensure your loved ones are protected. Here are some things you might want to consider when you are in your 30s:
- Last Will And Testament: Also known as ‘will,’ this document is used to specify who you want to inherit all or some of your assets, who will manage them, and who will be taking proper care of your children.
- Trust: This legal device transfers ownership of your different types of assets to someone called ‘trustee’ and dictates whom you want to manage your assets for your beneficiaries. Also, it comes in different types, such as investment and real estate accounts, and can be set up in various ways. These include revocable, irrevocable, and living trusts. Ask your lawyer to find out which will make the most sense to your needs.
What To Do In Your 40s
If you have all the documents mentioned above in place, then congratulations! You might want to check those if they’re still current. Otherwise, make sure to catch up right away.
In addition, this is the best time to discuss with your parents their estate plan. While this process can be complicated, understanding their healthcare and financial wishes will surely benefit everyone. That said, here are the legal documents you want to make sure your parents have:
- Asset distribution documents, such as beneficiary designations, wills, and trusts;
- Healthcare-related documents in case they’re no longer able to make necessary decisions for themselves; and
- Long-term care includes the payment and where they plan to settle and ask them if they have a long-term care insurance policy in place.
What To Do In Your 50s And 60s
If you don’t have any of the documents mentioned above by the time you reach your 50s, you’re not alone. Many baby boomers born between 1946 and 1964 don’t have a well-devised estate plan in place. People get confuse between mortgage brokers vs. banks which should be your choice. Therefore, start consulting with your lawyers and gather all these legal devices immediately.
What To Do In Your 70s
By this time, your estate plan should be complete. What you need to do is to continue reviewing and updating it whenever necessary. You want to be sure that it’s clear, understandable, and ready to be executed anytime.
Estate planning helps you plan your life thoroughly to prevent problems and other unfortunate circumstances in the future. This is especially true when it comes to decision-making and distribution of assets. This is why it’s essential to start making your own estate plan as early as possible. You can refer to this comprehensive guide to estate planning by age group to find out everything to be settle at your age.