Estate Planning for the Young

Estate planning needs a new name. When most people think of estate planning, words like elderly, wealthy, or death often come to mind. It also conjures images of vast tracks of land surrounded by high fences and homes built in the image of Versailles, right? Or is that just me? However accurate the word associations that go with “estate planning” may be, one thing is certain: Everyone needs some form of estate planning, even the young, single, and broke. Bet those words didn’t come to your mind though! 

Living Plans for the Young

There are three essential documents that everyone needs, whether you have a family with children or are a single professional in the corporate fast lane.

Durable Power of Attorney 

The first thing everyone needs is a durable power of attorney. There are many varieties of the durable power of attorney. The most popular variety goes into effect only when a doctor concludes and certifies that you are without capacity to make legally binding decisions. Without a durable power of attorney, your spouse, parents, siblings, live-in partner, or other loved ones would have to petition a court for the right to handle things for you. That’s an additional hassle they won’t want or need if they’re faced with your incapacity. All you need to do to set up a financial durable power of attorney is select a friend or family member that you trust to act as your "agent," and contact my office. I can handle the rest for you! 

Living Will

A living will is a medical directive. It spells out what types of medical treatment you want or don’t want in the event that you are incapacitated and suffer from a terminal illness or are in a persistent vegetative state. In either of those cases, it’s only fair that your wishes be followed, but that can only happen if you’ve expressed your wishes and desires before becoming ill. 

Giving loved ones the authority to handle your financial affairs in case of incapacity isn’t enough.  Someone needs to be in charge of making medical decisions on your behalf in the event that you are severely incapacitated.  Leaving the burden of tough decisions to a group is unfair.  Moreover, you need to designate one person who is capable, willing, and emotionally strong enough to carry out your wishes and look out for your best interests.

Although it is a contentious issue around the country, it is much more likely that your wishes will be followed if you have spelled them out in advance. It’s also important to share your wishes with your agent and your physician. That way everyone is on the same page.

Will

This is the basic document where you lay out who will make that your wishes are carried out as you have described. The person that accomplishes this on your behalf is called the Personal Representative or the Executor of your will. This is also where you will typically appoint a trusted person to serve as the guardian of your children. This is important in order to make sure that a judge that does not know you nor your family does not have to appoint someone to care for your children. It is also important to name at least one backup person to serve in each of these roles in case someone passes away or later decides not to serve in this capacity.

Professional Advice

Life planning is not something that you want to tackle alone. There is simply too much at stake, especially when a professional like me is available to help you create and implement a plan that is appropriate for your situation, whether you need only the documents listed above or a full blown estate plan with a will and revocable living trust. If you have questions about this article or would like more information, please contact me at 410-693-7323 or by email at acarducci@msn.com.