Estate planning is not only for older, wealthier individuals. Rather, financial experts and estate lawyers make it clear that it really is never too early to start the estate planning process. There are some key factors to keep in mind when it comes to estate planning for people under the age of 35.
Focus on the Essentials
When it comes to estate planning for people under 35, the basics – the essentials – typically are most important. Of course, there are instances in which a younger person accumulates a more significant amount of assets at an early age in life. However, that is the exception and not the rule. In those less common cases, a person will need a more complex estate plan.
The most common elements of an estate plan for people under the age of 35 include a will, a living will (or durable power of attorney for healthcare), and a financial durable power of attorney. In addition, at this juncture in life, a person needs to take a close look at obtaining appropriate life insurance. This particularly is the case if a person is married, in a committed relationship or has children.
Estate Planning for Today – Not some Future Date
When embarking on estate planning under the age of 35, a person oftentimes has a mindset based on some future date. This is not solid thinking. Rather, even when a younger person embarks on estate planning, he or she cannot think about some time down the road.
Estate planning, even for a younger person, needs to have a focus on the here and now. What that really means is that a person needs to develop a comprehensive, appropriate estate plan based on the possibility (no matter how remote) of passing away in the more immediate future.
With that objective noted, the need to regularly review an estate plan is imperative. Once a younger person has established a meaningful estate plan, he or she should review it at least annually.
Seek Professional Guidance
A person under the age of 35 need not go it alone when it comes to estate planning. Indeed, that is not advisable at all. A younger individual in need of an estate plan should retain the services of a skilled estate attorney.