It might feel like you were just listening to Usher, Lil Jon, and Ludacris in the club yesterday. Or maybe it was playing D&D and having a Dr. Who marathon with your roommates.

Regardless of your youthful hobbies, we’ve got news for you. That was five (or 10 or 20) years ago, friend. 

You may want to take time and rewind it back, but you’re an adult now. Maybe you’re living in your own home, doing your own laundry. You’re paying your own bills. You may even have a spouse, kids, pets, and a mortgage. 

But even if you are too young to have fond memories of this classic banger, you are certainly not too young to be thinking about estate planning. 

As you move into and through adulthood, it’s important that you take the necessary steps to ensure that your family, chosen family, and friends don’t experience unnecessary hardships should something happen to you. 

It’s never too soon to start estate planning

Estate planning can almost be a misnomer or something you think that your parents should be doing. 

But don’t let the term “estate” intimidate you. 

Life is unpredictable, and having an estate plan is a responsible way to prepare for any eventuality, regardless of age.

As you figure out “adulthood,” you may still be striving to hit career, financial, and personal goals and milestones. But regardless of what that looks like, you have people and things in your life that are worth protecting. 

An estate plan allows you to figure that out. Just as importantly, it helps you answer questions like: 

• Who will receive custody of your children? Is it a family member, your parents, or even your ex? 
• Who will pay your mortgage? How can you ensure your spouse can stay in your family home?
• If you have an inheritance to pass down, will your heirs receive a lump sum amount, an inheritance on a schedule, or funds as needed?
• What happens if your spouse remarries after you pass away?

What should your estate plan protect?

An important part of adulting is considering the impact your actions and inactions have on the people you love and care for the most. So, while you might think about estate planning as protecting your assets, reframe it as protecting your family and friends.

Your physical assets

From a big-picture view, your estate plan should account for the distribution of your assets—no matter how many assets you have. This can include (but isn’t limited to):

• Real estate: Primary residence, vacation homes, land parcels, etc. 
• Vehicles: Cars, motorcycles, boats, recreational vehicles, etc.
• Personal belongings: Furniture, jewelry, artwork, antiques, collectibles, electronics, etc.
• Other valuable items: Rare coins or stamps, musical instruments, sports memorabilia, firearms, etc. 
• Business assets: Inventory, equipment, intellectual property, etc.

Your digital assets

In today’s world, estate planning isn’t just about physical assets but your digital assets, too. 

And you probably have a lot more of them than you realize. They span everything from photos stored in the cloud to social media accounts and bank login information to cryptocurrency investments.

If these assets are not incorporated into your estate plan, your loved ones may lose access to the assets held in the accounts and valuable memories. 

Your health and wellness

Even if serious health issues seem far off, it’s important to consider your healthcare wishes. These might include:

• Advance directives outline your healthcare preferences and designate someone to make medical decisions if you cannot.
  • A living will specifies your wishes for end-of-life care and preferences for things like organ donation, pain management, or life-sustaining treatments.
  • A healthcare power of attorney specifies who can make medical decisions if you’re incapacitated.
• HIPAA authorizations allow your healthcare providers to share your medical information with designated individuals.

Your financial hygiene and protection

One of the big misconceptions about estate planning is that you have to have a substantial chunk of assets to do it. Let’s bust this myth! 

It doesn’t matter if you’re retiring early or are still figuring out the different types of IRAs. You can benefit from an estate plan if you have bank accounts, credit cards, car loans, student loans, mortgages, utility bills, and so on.  

More specifically, you can benefit from setting up financial powers of attorney. A financial power of attorney allows you to choose someone you trust to manage your bank accounts and other financial matters if you cannot do so. 

You may consider a durable financial power of attorney, allowing you to appoint someone to make financial and property decisions on your behalf, preventing your family from seeking a court-appointed guardian. This designation helps ensure that your bills are paid and your family has the resources they need. 

Where do you start with estate planning?

Estate planning can be an involved process, and it’s one best undertaken with the guidance of an experienced legal professional. While online DIY tools can be appealing, they won’t ask you the questions that result in a plan that reflects your long-term needs and concerns. 

So, the first step in estate planning is to find an attorney with whom you can develop a long-term, collaborative relationship. From there, they’ll help you:

1. Start with the basics. Your attorney may suggest a first step of creating a simple will and designating beneficiaries for your accounts. This step ensures you have created a good foundation for an estate plan that can be easily updated as you achieve those adult milestones.
2. Inventory your assets. List and account for all your assets, including bank accounts, investments, and personal property. Don’t forget your digital assets, especially if you’re the only one who can access them.
3. Consider a living trust. Being a younger adult doesn’t automatically mean your life and finances are simple. If you have built or inherited significant assets or have special considerations that need to be taken into account, you may need the additional flexibility of a revocable living trust.
4. Plan for incapacity. It’s no fun to think about the possibility you won’t be able to make your own decisions, but thinking about it now can minimize stress later. You should include medical powers of attorney and advance healthcare directives in your plan, so your wishes for medical care are known and respected.
5. Don’t set it and forget it. Your life changes daily, and your estate planning documents should keep up with you. Regularly review and update the beneficiary designations on your bank and retirement accounts and insurance policies.

Starting an estate plan can be overwhelming—let an experienced attorney help

You may have gotten married, had kids, and bought a house, cementing your status as an adult. 

It’s time to adult even harder and make a plan for your estate. 

The estate planning attorneys at The Law Offices of Shann M. Chaudhry, ESQ., can help you get started, guide you through the process, and offer you the most adult reward: peace of mind.

Contact us today to schedule a consultation.