Most people do not think about estate planning in their 20s. Creating an estate plan seems like a task for far in the future, when you have more assets and are thinking about retiring. However, having an estate plan in place as early as possible is a good move for you and your family. If you do not have an estate plan, it is never too early to start creating one.
If you have children and a family, it is especially important for you to create a solid estate plan. Here’s why:
Having an estate plan can help you account for many different variables life can throw at you. It is hard to think about, but there is always a chance the unthinkable will happen. If you do not have an estate plan in place, it can make the aftermath even more difficult for your family.
If you have children and you die without instructions in place, the courts will decide what happens to them. The same goes for your property and other assets. Having an estate plan will ensure that your family is taken care of, the way you intend.
What should go into an estate plan?
There are many elements you can include in an estate plan. Perhaps most importantly is guardianship of your children. In your estate plan you will want to specify who will take care of your children if you are no longer around. This also includes if something should happen to both you and your spouse.
Your estate plan should also include a will, life insurance details and any trusts or other financial assets you have in place. This can make the process much easier for your loved ones to figure out when you are no longer around to help.
You might also want to consider the idea of “micro estate planning.” This type of planning can be added to regular estate planning. It is a shorter-term type of plan that can account for more unexpected life events. For example, you can leave instructions for who your babysitter should call first if you do not make it home from dinner. Having plans for these types of events can lessen the stress and trauma on your family.
Overall, having an estate plan is much safer than not having one. No matter how young or healthy you are, it is a good idea to start thinking about these sort of plans and begin creating them as soon as possible. Your family will be that much safer for it.