As an 18-year-old, you’re likely focused on exciting milestones like graduating high school, starting college, or entering the workforce. Estate planning might be the last thing on your mind, but it’s a crucial step toward securing your future and protecting your assets. Here are six essential things to consider as you embark on your journey into adulthood:
1. Healthcare Directives: No one likes to think about medical emergencies, but they can happen at any age. Creating a durable power of attorney for healthcare and a living will ensures that your wishes regarding medical treatment are known and respected, even if you’re unable to communicate them yourself.
2. Financial Power of Attorney: Designating someone you trust to manage your financial affairs in case of incapacity is important. This person can handle tasks like paying bills, managing investments, and making financial decisions on your behalf.
3. Wills: While it may seem premature, having a will is crucial. It allows you to specify how you want your assets distributed and can also name guardians for any future minor children. Without a will, state laws will determine what happens to your belongings, which may not align with your wishes.
4. Digital Assets: In today’s digital age, don’t forget about your online presence and digital assets. Consider what should happen to your social media accounts, email accounts, and digital files after your passing. Including instructions for these in your estate plan can prevent confusion and ensure your digital legacy is managed as you wish.
5. Beneficiary Designations: Review and update beneficiary designations on your retirement accounts, life insurance policies, and other accounts regularly. These designations override your will, so keeping them current ensures that your assets go to the right people or organizations.
6. Trusts: Depending on your financial situation and goals, setting up a trust can offer additional benefits. Trusts provide control over how your assets are distributed, offer privacy by avoiding probate, and can even provide ongoing support for beneficiaries.
Estate planning might seem overwhelming, but it’s a proactive step toward protecting yourself and your loved ones. Consulting with an estate planning attorney can help you navigate the process and ensure your wishes are clearly documented and legally enforceable.
Remember, estate planning isn’t just for older adults or the wealthy—it’s for anyone who wants to have a say in what happens to their assets and affairs. Start early, stay informed, and protect your future. Your 18-year-old self will thank you later!
Thank you to our friends, the estate planning lawyers at Brandy Austin Law Firm, for the above blog.