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 help you prepare for death, but it can also help protect your interests in case of unexpected events.

Estate planning includes more than drafting a will. It features different legal tools and documents to manage your affairs. To ensure those left behind respect your wishes, make an appointment with a Texas estate plan lawyer to discuss what options are right for you. Here are a few common areas of discussion you may want to consider.

What Is Estate Planning?

The word “estate” often conjures up images of large houses, expensive cars, and a luxurious lifestyle. Yet, everything you have to leave to others when you die is your estate, in the legal sense. No matter how little or how much, you probably want to be sure it goes to the people you feel should have it.

Estate planning is not just an effort to control what happens to your property or provide resources or dependents when they die. It also gives you control over your medical treatment, including any life-saving measures, if you become unable to make those decisions for yourself. You can also choose your child’s guardian, provide for friends, and make charitable donations.

Understanding that estate planning is a smart move even in one’s early 20s and 30s can inspire you to safeguard your interests sooner rather than later. If you can address potential future scenarios now, you can provide peace of mind for yourself and those you love. For the best outcome, you should seek legal guidance throughout this process to create an effective, enforceable estate plan tailored to your unique circumstances.

Why Estate Planning Matters For Young Adults

People frequently think of estate planning as something that older adults do, but age doesn’t matter when it comes to making a plan for what happens after you pass away. Even 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. If you have children, more assets, or significant life responsibilities, you should consider the comprehensive benefits of estate planning to safeguard their future.

According to the Population Reference Bureau, the average age at which people get married in the U.S. is not until their late twenties. They often wait until even later in life to have children, yet you don’t have to check off these common milestones to be a good candidate for estate planning. With the current economy, you may still rent instead of owning a home, leading you to believe you don’t have enough assets to make an estate plan worthwhile.

Yet, estate planning during one’s youth is often critically important. Waiting until much later or until you retire can leave you with fewer choices for maximizing what you leave to your loved ones. When you begin your plan when you’re younger, your estate planning attorney can help you adjust it as life events happen, so your documents stay updated according to your wishes.

Estate Planning Can Be Uncomfortable When You’re Young

We get it – thinking about dying when you’re in your 20s or 30s is unpleasant. You are likely looking forward to building your life and assets instead of considering what happens when you’re gone. Yet, drafting your estate plan when you are young and healthy is the ideal time, since you can always make changes when needed.

A skilled estate planning attorney can help you through the process with compassion and experience, keeping you focused on the benefits of building your plan rather than the emotional downside. Think of an estate plan as a final gift you give to your loved ones that takes a great deal of burden off their shoulders. They will already have to deal with your physical loss, but a solid estate plan removes many of the legal complexities they might otherwise face.

Estate planning is also ideal for anyone who wants to have their wishes respected in case they become incapacitated due to illness or injury. A car accident, home invasion, or serious disease can leave you unable to express your wishes for medical treatment, and advance directives are a common estate plan instrument. Acting now lets you reap the benefits, such as enhanced peace of mind, for longer.

Reason #1 for an Estate Plan – Asset Management

Although you may not have much valuable property in your 20s, like businesses or real estate, you may have personal property that has measurable value to those who care for you. You may also own items with significant sentimental value and wish to hand them down to those who will appreciate them.

Under Texas inheritance law, if you are an unmarried adult who dies without children, your property will typically pass to your parents and possibly siblings if you die intestate (without a will). If you don’t get along well with your family, then estate planning allows you to bypass that law and transfer your assets to close friends or a romantic partner instead.

Even if you don’t own significant assets, you likely have more than you realize. Many clients fail to consider items 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.

Reason #2 for an Estate Plan – 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.

Setting up guardianship in Texas is vital if a child’s other parent is unfit or has supervised visitation. You can protect your children by naming other individuals, such as your siblings, parents, or other trusted people, as guardians. You can also create a trust that pays for your child’s expenses, reducing the guardian’s financial duties.

Even if your family situation is ideal, an estate plan lets you prepare for your children’s financial future by creating trusts that distribute funds as they age. With the guidance of the trustee, your children receive money at appropriate times in their lives, preventing them from overspending or anyone taking advantage of them.

Reason #3 for an Estate Plan – Unexpected Circumstances

Life is unpredictable, with accidents and illnesses occurring 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 heirs honor your medical and monetary preferences if you cannot make decisions for yourself.

Living wills, advance directives, and powers of attorney 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. You can even grant power of attorney over your medical care and financial affairs to separate individuals.

If you are over 18, your parents no longer have the right to make decisions for you. If you don’t have a spouse or significant other, an advance directive clearly states what you want to happen if no one is there to speak for you. You can also update this document as you get older, changing the authority from your parents to a spouse and so on, depending on who you trust throughout your life.

Reason #4 for an Estate Plan – Your Pet

According to the Centers for Disease Control and Prevention (CDC), fewer adults are choosing to have children. Many cite economic concerns, the desire to retain their freedom, or fear of bringing a child into a globally unstable world. These adults may choose instead to put their time and energy into pets and personal projects.

While dogs and cats don’t live as long as most humans, they still deserve consideration when you’re crafting an estate plan. The American Society for the Prevention of Cruelty to Animals (ASPCA) estimates that as many as 29% of animals entering shelters are surrendered when their owners can no longer care for them. Your estate plan can include instructions for who should care for your pet if you are incapacitated or pass away.

By having conversations with your pet’s intended guardian, you can feel better about what happens to them when you are gone. You can also set aside funds to provide for the animal’s well-being and final arrangements. Another choice is to make a monetary gift to a shelter, rescue, or other animal welfare institution.

The Basics of Estate Planning and Documents

Your first step is to meet with an experienced estate planning lawyer who will explain the steps, answer your questions, and request information about your assets and goals. Depending on your circumstances, you may need some or all of the following kinds of estate planning instruments:

• Will: Most people are familiar with this document, which explains how you want to distribute your assets. You can include special instructions about your final burial arrangements, as well as how to distribute items such as jewelry or letters.
• Trust: There are many kinds of trusts, but they essentially create a separate legal entity that controls the assets, administered by a trustee you choose and according to terms you decide. You may create trusts before you die or have ones that are created after your death.
• Advance directives: The two most common types are the durable healthcare power of attorney and the living will. You may need only one, or your attorney may recommend both.
• Durable healthcare power of attorney (POA): This establishes your healthcare proxy, who will speak for you and make decisions if you are physically or mentally unable. If you are hurt in a car accident and left in a coma, your POA will advise doctors until you recover or pass away.
• Financial power of attorney: You may wish someone else to handle your financial concerns if you’re incapacitated and can name a different individual as your financial POA. You can also choose the same person for both roles.
• Living will: This document outlines what treatment you want if you can’t speak for yourself. You should discuss these wishes with your designated healthcare proxy, who has the power of attorney, so there are no misunderstandings.
• Specific healthcare instructions: Usually included in your living will, you can state specific instructions for different scenarios, including Do Not Resuscitate (DNR) orders, Do Not Intubate (DNI) orders, or Do Not Hospitalize (DNH) orders.
• Pet care provision: If you have only one animal or several, you can create a document that specifically outlines who should receive ownership, along with details about care, health decisions, and final arrangements. You can also leave money to support the pet’s needs.

After you and your attorney have worked out the details, they will help you formally file the legal documents and establish any trusts or accounts. At that point, you can get back to enjoying life, knowing you have taken an important step by creating a customized estate plan that you can adjust as your life changes. To learn more about what Towson Law Office can do for you in the area of estate planning, contact us to arrange a consultation today.