Estate Planning for Young Adults
Estate planning isn’t just for families and high net worth individuals. Young adult individuals also need to plan for the unexpected. Once a child turns 18, parents lose the legal ability to make decisions for their child or even to find out basic information. Without proper planning, parents or other loved ones, may have to go to court and ask for permission to obtain information about your medical condition, be able to make decisions about treatment, and have access to your financial records and accounts. A tragedy can happen to anyone at any time. Planning for such a moment is uncomfortable but, it can prevent added heartache and frustration in such an event.
Estate planning documents that all young adults should have regardless of net worth or family status include: durable powers of attorney for healthcare and finances; HIPPA authorizations; advance healthcare directives; and a will.
Durable powers of attorney give another person the authority to make decisions on your behalf if you are not able to make them for yourself. A power of attorney that is not explicitly named as “durable” will end once you become incapacitated while a durable power of attorney will continue through incapacity.
HIPPA Authorizations give your doctors permission to discuss your medical situation with others, including family members and other loved ones. Advance healthcare directives, also known as living wills, specify what actions should be taken for your health if you are no longer able to make decisions for themselves because of illness or incapacity.
A will can designate who receives your assets in the event of your death. Without a will, the laws of the state will determine who will receive your assets. In addition to having a will, all individuals should make sure they have up-to-date beneficiaries on bank accounts, retirement accounts, life insurance policies, and any other financial instrument that can automatically transfer on death.
If you really want to live life on your terms, then take action today to make sure that you do that, all the way to the end. Contact The Howe Law Firm today to see which estate planning documents are right for your situation.