Misconceptions exist about the relationship between age and estate planning. Yes, older people may prioritize estate planning for reasons related to advancing age and health concerns. That does not mean only older California residents benefit from the process. Young people could find tremendous value in estate planning steps. Drawing up several estate-related documents could make things easier for relatives and other loved ones if the unexpected happens.
Estate planning for young people
With age comes experience, and a lack of knowledge could make handling several financial strategies challenging. Young people may not realize that they are underinsured, or they might not understand how to comply with tax laws. A parent may have experience in these matters, so signing over power of attorney could allow the parent to handle financial matters for a son or daughter.
The above scenario illustrates another aspect of estate planning that young people might not realize: There’s more to planning than writing a will. A financial or health care power of attorney document could designate responsibilities to someone better capable of handling them.
As for health care documents, young people might not think about illnesses and injuries, but youth does not prevent someone from becoming incapacitated. If an accident occurs, having a health care proxy or living will in place could add clarity and direction to a challenging situation.
Last will and testament
No one knows when his or her time will come to an end. Writing a will helps address several responsibilities after a person’s passing. Leaving assets, such as a car or IRA account, to a beneficiary reflects one component of a will. This vital estate planning document could also include other directives that the testator wants to be carried out.
An attorney who handles estate planning and probate may answer questions about both processes. The attorney might help a client draft an official will that is more legally sound than a DIY document.