If you’re in your early twenties or thirties, you might not have estate planning on your mind just yet. Perhaps you feel like you’ve got your financial bases covered because you’re already sticking to a budget, planning for retirement, and saving for a down payment on a home.
It’s easy to assume that estate planning is an aspect of personal finance that you don’t need to think about until you’re older, but getting started with the estate planning process early on is a smart decision. After all, you never know what tomorrow will bring, so it’s best to think ahead and prepare for the unexpected. Zara Law Group shares a few estate planning steps that you should consider taking care of in your twenties and thirties.
It’s never too early to begin estate planning – and, according to Asset Strategies International, precious metals can and should be a vital component of your financial strategies. Gold in particular is an excellent investment, both for the present and for your future – not to mention your family’s future.
Even if you’re young and healthy, you may want to consider enrolling in a burial insurance plan. In the event of your death, burial insurance can take a huge financial burden off your loved ones. Most people purchase burial insurance to cover the cost of their funeral arrangements and save their families the trouble of paying for it.
However, depending on the policy you choose, burial insurance can also cover expenses like medical debts and personal loans. Before making a final decision about which policy is best for you, think about your potential funeral arrangements and which expenses you would want covered should you pass away. A pricier policy will provide you with higher levels of coverage.
You may not have seriously considered your end-of-life wishes before, but it is better to write up your initial will while you are younger, rather than waiting until you are already in retirement. After all, if you have any assets, you want to ensure that they will be distributed according to your preferences. You can write your will on your own, but if you don’t know much about estate planning, you may want to work with a lawyer who can answer all your questions.
How does a living will differ from a standard will? According to FreeAdvice Legal, your living will is the document your family members and medical providers will reference if you are alive but incapacitated. In your living will, you will dictate which healthcare procedures you would want your doctors to attempt in order to revive you and which procedures you would not want them to go forward with. These are difficult decisions, so take time to think carefully about the contents of your living will.
If you cannot communicate your own wishes due to a medical issue, you will need someone trustworthy to do it for you. A durable power of attorney is a legal document in which you name one of your loved ones to handle certain healthcare and financial decisions for you if you are incapacitated. This is an essential aspect of estate planning, and you should choose someone who you know has your best interests at heart.
Do you have children? If so, you might want to think about establishing a trust for them. This is one way to ensure that your children will be financially comfortable if they should lose you at a young age. Each state has specific requirements for a trust declaration, so check out local resources to determine your next steps. Choose a responsible person who truly cares about your children to manage this fund.
Also consider what will happen to your home in the event of your death or if the day comes when you need to move into an assisted living facility. By bequeathing your property to your children or other family members, they will benefit from the proceeds of an estate sale, unless, of course, they move in and live there.
This topic may seem a little extreme, especially when you’re just starting out, but it’s something that’s important to keep in mind. As many people already know, nursing homes and long-term care facilities are expensive, so having money set aside for this expense late in your life can make all the difference when the time comes. You can begin planning for nursing home care by looking at different facilities and what they offer. This way, you’ll have a better idea of what you need to plan for, as well as home much money you’ll need to save for this time in your life. ZenBusiness also has some additional tips and resources to help you understand and make the most of your employee benefits.
There’s no sense wasting money on more home than you need. Relocating to something smaller and more manageable is a great way to divert more cash into your savings and future planning.
Estate planning can be a complicated process, which is why it’s best to get started when you are young. It is the best way to guarantee that your loved ones will receive your assets the way you see fit when you pass away. By working on these legal documents well before you will likely need them, you will be prepared if life does not go according to plan.
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From real estate and business, real estate & professional legal matters to estate planning & probate, Zara Law Group is your partner in handling legal matters. For a free consultation, please contact us at 708-365-8411.
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