People often associate estate planning with middle age or retirement. It is obviously important for those who have become financially secure or responsible for other people to have plans in place in case of a tragedy.
However, even those who expect to have decades of healthy, productive life ahead of them may benefit from the creation of an estate plan. Estate planning is often the last thing on a new adult’s mind when they start their first full-time job or move out to attend college. They may not realize how vulnerable they actually are. Estate planning can be quite helpful for those just starting out their adult lives.
New adults don’t have access to support
Those who are over the age of 18 may not realize that their parents have limited power to assist them should an emergency arise. They have become so accustomed to support from their parents that they may take it for granted.
However, if a college freshman ends up in a coma because of a car crash, their parents may not be able to do much to help them. Parents generally do not have legal access to the medical records of their adult children. They may also lack the ability to guide the interventions provided by health care professionals.
Additionally, parents usually cannot use an adult child’s bank account to pay their bills. Unless the new adult has already married, there is no one who has access to their private accounts and medical information or the authority to act on their behalf.
Drafting powers of attorney can allow a young adult to empower their parents or anyone else they trust to act as their agent or attorney-in-fact. They can designate someone to handle financial matters, like paying their rent and student loans. They can also authorize someone to make decisions about their medical care.
Intestate succession laws don’t work for most people
While young adults may not have much property, they may have a few assets in their names. They may want certain items to go to close friends, siblings or romantic partners.
However, if they die without a will, intestate succession laws determine what happens with their property. Typically, spouses and children inherit everything from an intestate estate. When a young adult dies, their parents likely inherit everything they own. The only way to sidestep those rules is to draft a will.
Understanding how vulnerable it can be to live as an unmarried new adult may inspire students and professionals to establish an estate plan. Preparing the right documents can help give people peace of mind and access to support when they are vulnerable.
if they die without a will, intestate succession laws determine what happens with their property. Typically, spouses and children inherit everything from an intestate estate. When a young adult dies, their parents likely inherit everything they own. The only way to sidestep those rules is to draft a will.
Understanding how vulnerable it can be to live as an unmarried new adult could inspire students and professionals to establish an estate plan. The right documents can give people peace of mind and access to support when they are vulnerable.
