If you’re a young single adult living on your own for the first time, you’re probably finding out that adulting is hard. You have to pay rent and utilities, do your own grocery shopping and schedule your own dental appointments.
You should also add estate planning to that list of adult responsibilities. You may think it’s only for older adults and wealthy families. The reality is that every adult can benefit from having a few essential legal documents.
Planning for emergencies
Emergencies can happen at any age. If you are in an accident or become seriously ill, you may not be able to make your wishes known. You need someone to make medical and financial decisions on your behalf. A durable power of attorney (POA) appoints a trusted individual to manage your financial affairs. An advance directive and health care POA can help ensure that your medical wishes are followed by your chosen health care agent.
Without these legal documents, the court will determine who can speak on your behalf. This can cause delays and conflicts. You also risk having someone make choices you would disagree with.
Avoiding dying intestate
If you die without a will, your property will be distributed according to Tennessee’s intestacy law, which may not reflect your wishes. While you may not have substantial assets yet, you likely have a bank account, a workplace retirement fund and a car. Your will lets you choose who receives them.
You can also protect your digital life. Your digital assets, such as social media accounts, email, cryptocurrency wallets and photos stored in the cloud, also need to be dealt with in the event of your incapacitation or death. You can authorize the executor of your will to access and manage those assets.
If you have a pet, you will want to ensure they’re cared for. A will allows you to name a new caregiver and set aside funds for food, vet visits and other items they may need.
By creating an estate plan, you are also making things easier for the people you love. Without the proper legal documents, your family may be forced to go to court at a time when they are already grieving. Clear instructions can spare everyone added stress and confusion.
Your estate plan doesn’t need to be complicated. With experienced estate planning guidance, you can help you create a plan that meets your needs and can be updated as major life events occur.