Many young people assume that estate planning is necessary only for older adults or the rich. This common misconception often leads to procrastination in addressing crucial financial and personal matters. Estate planning does not only prepare for death; it can help protect your interests in case of unexpected events and also help ensure that your wishes are respected.

Age doesn’t matter—if you are in your 20s or early 30s, with limited assets or just starting your career, an estate plan can be an integral part of responsible adulthood. Estate planning includes more than drafting a will. It features different legal tools and documents to manage your affairs.

Why estate planning matters for young adults

Young adults, especially those with children, assets or significant life responsibilities, should consider the comprehensive benefits of estate planning to safeguard their future.

• Unexpected circumstances: Life is unpredictable. Accidents and illnesses can occur at any age, often without warning. Without an estate plan, your family may face legal hurdles and financial strain in managing your affairs. A well-drafted estate plan can ensure your medical and financial preferences are honored if you cannot make decisions for yourself.
• Guardianship for minor children: If you have children, you should consider assigning a guardian. This decision allows your children to receive care from someone you trust if something happens to you. Without a guardian, the court will have to decide who will raise your children, possibly placing them in the care of someone you wouldn’t have chosen.
• Asset management: Even if you don’t own significant assets, you likely have more than you realize – such as savings accounts, retirement plans, life insurance policies and personal belongings. Estate planning helps you control how these assets are distributed, preventing potential disputes among family members and helping ensure your wishes are fulfilled.
• Advance directives: Living wills and advance directives let you express your wishes on end-of-life care and medical treatment. These documents guide those around you, including healthcare providers, in making decisions that match your values and preferences.

Estate planning is also for anyone who wants to have their wishes respected in case of incapacitation.

People frequently think of estate planning as something that older adults do. It is common for people to put off the creation of an estate plan until they achieve certain personal milestones. Some adults even wait until they are almost ready to retire to prepare for their own mortality. Although it is human nature to defer unpleasant activities, including the drafting of estate documents, it is a far smarter choice for an individual to take action earlier in life. That way, they can reap the benefits of their advanced planning, including enhanced peace of mind, for longer.

Given that many people don’t marry until their late twenties on average and may wait even longer to have children, if they have children at all, many adults don’t see the value in estate planning when they are young, don’t have any dependents and may not yet have any major assets. Yet, estate planning during one’s youth is often critically important.

People may not die, but they may need help

Estate planning is not just an effort to control what happens to one’s property or provide resources or dependence when they die. Estate planning also gives someone control over their circumstances after incapacitation. Advance planning with living documents, including powers of attorney and advance medical directives, allows people and opportunity to empower someone they trust to manage their Affairs in an emergency. Once someone turns 18, their parents no longer have access to their medical records or the authority to make healthcare choices on their behalf.

Those who aren’t married yet have no one to manage their treatments or access their assets. Powers of attorney allow someone to name an agent that they trust when they are an adult who might need help paying their bills or getting the right medical treatments after an incapacitating event, like a car crash that leaves someone in a coma.

There may be a few assets to consider

Although those in their twenties often don’t have much valuable property like businesses or real estate yet, they may have personal property that has some worth and also some emotional significance to the people who care about them. An unmarried adult who dies without children will see their property largely pass to their parents without a will, which makes estate planning a smart move for those who have close friends or a long-term romantic partner that should receive some of their property.

Understanding that estate planning is a smart move even in one’s early twenties can help people to be inspired to safeguard their interests sooner rather than later.

If you can address potential future scenarios now, you can provide peace of mind for yourself and those you care about. It’s important to seek legal guidance throughout this process to create an effective, enforceable estate plan tailored to your unique circumstances.