If you’re in your 20s or 30s, estate planning probably hasn’t even entered your mind. That’s understandable. If you’re like most people, you believe that it’s something that old, rich people do, and there’s no reason for you to have one.
However, you may be surprised to learn there are several reasons that it’s a good idea to start an estate plan now.
1. You own more than you think
Your car, bank accounts, gaming systems, laptop and superb art collection are all a part of your estate. If something happens to you, the state of Oregon will decide how they’re distributed, and it may not be the way you want. Your hard-earned money could get tied up in court and be stuck in legal limbo. An estate plan ensures that whatever you own goes to the people you care about.
2. Who will manage your finances?
Unexpected medical emergencies can happen at any age. If you become incapacitated due to an accident or illness, your bills will still need to be paid. A power of attorney (POA) gives an individual you trust authorization to make financial and legal decisions on your behalf if you cannot.
3. Will your wishes be respected?
In addition to needing someone to handle your finances, you may also want to name someone as a healthcare proxy to make decisions regarding medical treatment. Additionally, a living will enables you to outline your wishes for medical care and organ donation. If you don’t make these arrangements, your loved ones may have to face stressful decision-making during an emotionally challenging time.
4. Your digital assets
You likely have a large online presence. What will happen to your online investments, social media accounts, cloud storage and emails if something happens to you? Your estate plan can include instructions for how you want your digital assets managed and safeguard your identity.
It’s important to understand that your estate plan isn’t set in stone. You can review and update your plan after significant life events such as marriage or the birth of a child. But, by taking the time to create an estate plan now, you are making a forward-thinking decision that can provide peace of mind to you and the people you love.