When you pass away, your estate plan will provide legally-binding instructions on how your assets and liabilities will be handled. While this may seem like a far off event, attorneys recommend starting a plan early on—even as a young professional. If you’re new to the process, here’s a quick guide on creating an estate plan in your 20s and why it’s important.

Why Start an Estate Plan In Your 20s?

Control Important Decisions

If an accident or illness leaves you unresponsive or unable to make decisions, an estate plan can preserve your wishes regarding medical and financial choices. It will also allow you to appoint individuals to make these decisions, such as a partner or attorney. Without a plan, these decisions may be left up to your next-of-kin or the courts.

Protect Assets

After your death, the court will decide what happens to your assets—such as real estate, investment accounts, and vehicles—through a process known as probate. If there are no plans in place, these assets will be bequeathed to individuals according to state law.

Typically, they will go to a spouse, child, or next-of-kin. With an estate plan, you can make sure that every valuable asset ends up in the right hands.

Plan for Children

Estate plans can include details on who should serve as a guardian to your children if you pass away without another suitable parent in the picture. If there’s no plan, children can be entrusted to a close relative—such as a grandparent—or become a ward of the state, requiring them to enter the foster care system. If you don’t have kids, you can also use an estate plan to establish guardianship for a pet.

What Should Be Included in an Estate Plan?

Living Will

A living will describes how your assets will be distributed among beneficiaries, such as family and friends. You can also use this document to establish decisions regarding guardianship, debt resolution, and funeral plans.

Durable Power of Attorney

Assign durable power of attorney to a trusted individual, such as a spouse, parent, or attorney. If you become incapacitated, this individual will be able to make decisions regarding financial accounts.

Healthcare Proxy

The healthcare proxy should designate a person to have a healthcare power of attorney. This individual will make decisions regarding your medical care if you’re unable to do so. The proxy might also include an advance directive to outline your wishes for medical treatment if you’re incapacitated.

For young professionals who want to prepare for the future, Cheryl A. Beverson, Attorney at Law, in Middletown, NY, is here to help you create and manage an estate plan. Well-versed in estate law, this attorney helps clients throughout the Hudson Valley Region draft wills and designate powers of attorney. To learn more about the firm’s services and practice areas, visit the website. Call (845) 341-0008 to schedule a consultation.