Estate planning 101Finance

Estate planning in your 20s – does it matter?

While estate planning may not seem like a high priority in your 20s, it is still important to start thinking about the basics of estate planning. Here are a few important considerations to keep in mind:

  1. Establishing a will: Even if you don’t have a lot of assets yet, it is still important to have a will in place to ensure that your wishes are carried out in the event of your death. A will can also help minimize potential disputes and ensure that your assets are distributed according to your wishes.
  2. Naming beneficiaries: You should also start thinking about who you want to name as beneficiaries on your various accounts, such as your bank accounts, retirement accounts, and life insurance policies. Designating beneficiaries can help ensure that your assets are passed on to the people you want to receive them.
  3. Creating a durable power of attorney: A durable power of attorney is a legal document that allows you to appoint someone to manage your financial affairs if you become incapacitated. This is important because it ensures that your bills are paid and your financial affairs are managed if you are unable to do so yourself.
  4. Considering life insurance: While life insurance may not be a high priority in your 20s, it is still worth considering if you have dependents or other people who rely on you financially. Life insurance can provide financial protection for your loved ones in the event of your unexpected death.
  5. Updating your estate plan as circumstances change: As you move through your 20s, your circumstances are likely to change, such as getting married, having children, or acquiring more assets. It is important to update your estate plan as your circumstances change to ensure that it still reflects your wishes and meets your needs.

Overall, while estate planning may not be a top priority in your 20s, it is still important to start thinking about the basics and take steps to protect your assets and ensure that your wishes are carried out in the event of your death.

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