Family responsibilities are often what incentivize people to draft estate plans. Adults want to leave resources for their spouses or children. Young professionals in the first decades of their careers are less likely to have dependents who rely on them for financial and practical support.
They may convince themselves that they do not need an estate plan yet because they don’t have children or spouses to protect. Many young professionals are legally exposed and vulnerable if they die prematurely or have an emergency.
Estate planning as a young professional can help people achieve numerous goals that provide them with peace of mind and stability. What estate planning issues do young professionals often need to address?
Stating their medical preferences
When a young adult turns 18, their parents lose the ability to access their medical records or make choices about their medical care. A spouse can assume that authority once an individual marries. For those who are over the age of 18 but not yet married, a medical emergency might leave them without anyone to speak on their behalf. Drafting an advance health care directive gives a young professional an opportunity to communicate their wishes regarding medical treatment to others.
Protecting their financial stability
In an emergency scenario, a young professional could end up incapacitated for weeks or longer. During that time, they might fall behind on credit card payments, rent and student loan obligations. Landlords could evict them. Their credit score could tumble. Some of their assets might be vulnerable because there is no one to manage their finances. Establishing powers of attorney can give young professionals an opportunity to name a trusted individual to handle their financial responsibilities in an emergency. Particularly if the professional runs a small business or is self-employed, they may need to empower someone to take over their professional responsibilities and their finances.
Establishing their lasting legacy
Young adults and those in the early stages of career development may not want to think about dying in the near future. While most young professionals have decades of life ahead of them, some people may have accidents or illnesses that result in premature mortality. Unless an unmarried professional establishes an estate plan ahead of time, the chances are good that their parents may inherit everything they own. For those with unmarried romantic partners, close friendships or difficult family dynamics, intestate succession rules may fail to address their needs. Taking the time to draft a will can give an individual an opportunity to name people or even charitable causes as their beneficiaries should they die prematurely.
The sooner that young professionals draft estate plans, the longer they can enjoy peace of mind and protection from those documents. Updating documents after their creation is a simple matter, but addressing major issues without an estate plan can be all but impossible. Young professionals who understand the importance of estate planning can act to protect themselves and others in case something unexpected occurs.
