Folks often put off estate planning because they think they are too young or do not have a sizable estate to protect. However, an estate plan can be beneficial for every adult.
These plans can look different across the age groups, but the important thing to know is that there is value in having an estate plan at any age.
In your 20s and 30s
Young adults may not have kids or a home, and they may have more debt than assets. Thus, if you are in your 20s or 30s, your estate plan can prioritize components that protect others from taking on financial liabilities and express your wishes.
For instance, you might focus on advance care directives, wills and appointing someone to finalize your affairs. At this age, this might entail closing digital accounts and minimizing expenses in probate.
In your 40s and 50s
When you are a little older, you may have more assets and people to protect. If you are in your 40s or 50s, your estate plan may well focus on ways to make difficult situations easier for your loved ones.
Some components to focus on at this age might include setting up a trust for your children, appointing a guardian and naming beneficiaries.
When you are 60 and older
When you are 60 and older, factors like your health, retirement, and personal relationships can profoundly affect your estate plan and legacy.
Some of the crucial components to consider might include long-term care planning, making final arrangements, and providing direction on distributing your assets among children, grandchildren and other loved ones.
Planning tools for adults of all ages
This information represents a general guide on how various estate planning solutions and strategies can protect you at different phases in your life. However, there is no age requirement when it comes to the tools you might utilize in your plan.
No matter how old you are, finding the right planning implements for your specific situation will be crucial. And keep in mind that things change as you get older. Thus, making adjustments to your plan over time can help ensure your estate plan reflects your current situation and wishes.