If you’re in your twenties or thirties, you probably don’t spend much time thinking about estate planning. After all, you’re decades away from retirement, so why should you spend time worrying about estate planning? Between taking care of basic financial responsibilities such as saving up for a house, sticking to a realistic budget, and putting money into an emergency fund, you may feel like you’ve got enough on your plate already.
But beginning the estate planning process ahead of time will help you eliminate stress later in life. Life is unpredictable, and when it comes to estate planning, you don’t want to be caught off guard. Here are a few tips you might want to keep in mind as a young professional.
Purchase Burial Insurance
Have you ever considered how your loved ones would cover the cost of your funeral? If you’re in your twenties or thirties, the answer is probably not, but as you get older, you may wish you had given it some thought. Most people take out a burial insurance policy specifically to help pay for their funeral arrangements, but if you’re able to afford a more expensive plan, you could also purchase coverage for medical bills or personal loans.
If you’re interested in purchasing burial insurance, you can browse a variety of plans. However, in order to choose the right policy, you’ll want to take a few different factors into consideration, such as what kind of final arrangements you have in mind and whether you want additional coverage for other expenses.
Draw Up a Will
When you were younger, you probably saw no need for a will; chances are, you didn’t have any substantial financial assets, so the thought never crossed your mind. But now that you do have assets and potentially a spouse and children, writing your will should be on your to-do list.
You can enlist a lawyer to help you out as you write your will, but according to LegalTemplates, you can also put this document together on your own. One of the most important aspects of writing your will? Naming an executor who you can trust to manage your affairs after you pass on. Consider which of your loved ones would be suited for this role.
Designate Power of Attorney
What happens if you cannot make choices about your own medical care for yourself? Who would be responsible for handling those crucial decisions in that scenario?
To prepare for these circumstances, you need to write a living will and designate a power of attorney in advance. You can give someone the responsibility of making medical or financial major decisions for you if you become incapacitated. In most cases, this person will be your spouse, but you can also choose another family member or loved one.
Establish Children’s Trust Fund
If you have children, you’ll also want to make sure that they will be taken care of. That’s why creating a trust fund for your children is such an important part of estate planning.
To set up a trust fund for your kids, work with a reputable attorney who can provide guidance. And if you’re concerned that your children would not be financially supported if you were to pass away, it may be a good time to think about how you can reduce your spending so that you can save more money for their future.
When you start the estate planning process, making all of these big decisions can feel very overwhelming. However, thinking about these plans well before you actually need to implement them is a very smart decision. Your future self will definitely thank you!
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