Estate Planning for Young Adults
Estate planning may be something you only associate with older adults – those with families that span multiple generations, retirees who have accumulated wealth from work and various retirement and investment plans, or elderly individuals who require assistance through at-home care or nursing homes. But estate planning can be beneficial to young adults as well. The following tools can help an individual plan for many different occasions, no matter what age.
If there is an accident that causes incapacitation, most young adults would want their parents’ or spouse’s help. Preparing the following documents can allow hospitals and institutions to share pertinent information with loved ones, and help them make decisions if the need arises –
- HIPPA Authorizations allow doctors to discuss medical information with loved ones;
- Health Care Powers of Attorney allow you to choose another individual you trust to make health care decisions for you when you can’t make them for yourself;
- Living Wills give you the ability to outline what type of care and treatments you would like to receive in different medical scenarios, for instance if you would like to be placed on life support or use feeding tubes;
- Financial Powers of attorney allow you to choose another individual to manage your financial assets and legal issues when you are unable to.
In the event of (early) death it is important to note that not creating a plan still creates a plan. All states have laws regarding who your beneficiaries are and how your estate is inherited if you die without creating a plan first. In Michigan this means your estate would likely pass to either your spouse, children, parents, or siblings depending on who is alive at the time of your death. Even if this is who you would like to inherit, it is passing your estate on to these loved ones through probate, which can mean higher estate taxes and little to no protections for minor beneficiaries. For more personalized plans with protections, consider –
- Trusts and Wills lay out who you would like to receive your assets and belongings. Trusts have the added benefit of designating how and when these individuals inherit. So, if you have minor children you can add in protections against their creditors and against themselves until they reach a certain age or are able to handle their finances;
- Guardianship papers dictate who you would like to take care of your minor children;
- Digital asset planning allows you to designate what happens with your online accounts, social media profiles, and subscription services.
To discuss estate planning tools and how they can benefit you, please contact our office at (248) 409-0256. We offer a free initial consultation to learn more about our process.