Many people assume that estate planning is only for older individuals. While the younger generation may have more time to get their estate in order, you never know what the future will bring. This is why it’s important to take a strong look at your estate plan when you’re in your 30s.
Although everyone faces unique personal and financial circumstances, there are five things to think about when estate planning in your 30s:
- Create a last will: This outlines who will receive your assets upon your death, along with other important information such as the executor of your will and the guardian of any minor children.
- Create a living will: There is more to estate planning than thinking about what will happen upon your death. You could also become incapacitated at some point, which is why a living will is critical. This ensures that the right person steps in to handle your affairs if you’re unable to do so.
- Create a financial power of attorney: What will happen to your finances if you’re incapacitated? If you have concerns, a financial power of attorney can put them to rest. You name a person who can make financial decisions on your behalf, such as paying medical bills, collecting income and managing your investments.
- Purchase life insurance: There’s no better time than now to think about the future well-being of your loved ones. With a life insurance policy, you can financially protect your family in the event of your death. There are several types to consider, with term and whole life insurance the most popular.
- Focus on retirement: Estate planning and retirement planning go together hand in hand. It’s likely that you’ll work for many more years, but planning for retirement in advance will put you in a better position down the road.
Estate planning in your 30s is never easy, as it means taking a long look into the future and having to imagine the unthinkable if an accident or illness were to bring your life to a tragic change or close. The fact that you won’t be around forever is generally not a welcome thought. However, it’s no excuse to not make sure your loved ones are taken care of when you’re no longer here to do so.
Fortunately, with a comprehensive estate plan in place, you don’t have to stress about what will happen down the road. Instead, you know that your assets will end up in the right place and that all your loved ones will be taken care of.