Being wealthy is not a requirement for creating an estate plan. Neither is being old, retired, having a family or owning a lot of assets. If you are a Millennial, and you haven't started estate planning, here's how and why you need to get started.
Why Millenials Should Begin Estate Planning Now
If you don't have an estate plan you're putting yourself at risk. Let's say the worst happens, you become ill and die at a young age. Who would you want to make decisions on your behalf? Does that person legally have the right to make those decisions? Depending on your state's laws, the person you appoint may not be able to without the right documentation.
Working with an attorney
Alright, you've made the leap and you're ready to start planning. Contact an estate attorney who knows the federal and state laws that apply to your situation. They're the experts, don't try to create the documents you think you need by yourself.
Basic estate planning documents
Married or single, young or old, parents of two kids or dog parents, not having estate planning documents is a mistake. These are the most basic estate planning documents for you to get started:
- Last will and testament
- A living will communicates what type of medical care, life-sustaining or resuscitation efforts, and pain medications you wish to receive
- Power of attorney
- Health care proxy
Life insurance and updated beneficiaries are important
Life insurance should be part of your financial plan. It can be an easy way to ensure your family can continue to live the life you intended for them in case the worst happens at an untimely age.
Updated beneficiaries are also extremely important. If you don't update the beneficiaries on your retirement accounts, all the work you did with the estate attorney is useless.
- Prior and current 401(k) accounts
- Other retirement accounts
These beneficiaries take precedence over what is in your will.
It's never too early for estate planning
As a Millennial, you probably feel like your life is just starting and your ending is too far off to even consider. However, we never really know when our time is up, so having an estate plan in place will allow you to enjoy your life without any lingering complications. This way your family and your assets will be taken care of.
Read the full article about Beginner Estate Planning for Millennials to broaden your understanding.
For more information about estate planning contact David Veliz at Veliz Katz Law to ensure you have a safe and updated plan.