Unfortunately, many young people do not see the point in creating estate plans in their 20s and 30s. Once you marry or have a child, you need to start planning for the future, and it is never too soon to develop an estate plan.
Many people do not start thinking about wills and trusts until they are in their 50s. It makes sense because retirement is right around the corner, and children will likely be out of the house at this point. However, even millennials need to start planning for the future. You may not think it will apply to you at this point, but there are valid reasons for creating an estate plan early on in life.
An accident can incapacitate you
Accidents can impact people of any age. You may be in good health now, but an accident can make you incapable of making decisions independently. Without a power of attorney and health care directives, your loved ones may not know what to do. You need someone to make decisions for you, but you did not designate who that person should be. People could have differing opinions on what the best course of action is, resulting in hurt feelings and confusion.
You want to protect your loved ones
Married millennials may assume they do not need an estate plan because their spouse will inherit everything. However, this is not always the case. You may want some of your assets to go to your children and some to go to your spouse. Perhaps you want most of your money to go to a charity upon your passing. The only way for these assets to go to where you want them is to create an estate plan early on.
It does not hurt you in the long run
You can change your estate plan throughout your life. Therefore, you can create one now and update it as necessary. You have nothing to lose and everything to gain by being smart about your future.