You’re young, have little in savings, and likely have no one yet
relying on you financially. So why do you need to think about
estate management?¹
Or maybe you’re a little older and single, kids are grown and on
their own, and the grandkids still love to see you. How complicated
could it be?
Here are four great reasons to check in with an attorney related to
unexpected end of life scenarios:
1. You need a will. You may ask why a will is important if
there’s not much to pass on. A will is not just about
transferring assets. It can be used to accomplish other tasks,
such as naming who should manage your social media
accounts once you’re gone or inherit items you’ve
accumulated, like collectibles or your car.
2. Don’t burden others with burial expenses. Funerals can
be expensive, and if you don’t have the savings to meet those
costs, that burden gets shifted to others. While pre-paying for
a funeral is an option, so is setting aside money for that
purpose. Others use life insurance to avoid burdening their
family with funeral expenses. Make sure to talk through your
wishes with a trusted family member or friend.
3. Consider a medical directive. This important document
states your wishes for end-of-life care. In the case of an
unfortunate accident, a medical directive provides instructions
about the level of care you want, e.g., palliative care only. In
other words under what circumstances will your family/friends
request medical care stop being provided or simply pull the
plug.
4. Create a durable power of attorney for health care. In
the event that you are unable to make medical decisions for
yourself, this gives the individual of your choice the legal
power to act as a healthcare proxy for you.
Not only do a medical directive and durable power of attorney
(POA) for health care ensure you are provided the level of
care consistent with your wishes, but they can prevent family
discord in the event of differing opinions. Make sure to have
the estates planning attorney include the HIPAA authorization
form for those named on the POA.
Summary
Though the multiple financial goals of many young adults
often require more resources than present earnings can meet,
these important planning steps can be accomplished at a
small cost.
For those beyond the “young adults” stage based on age (but
not in spirit), the financial resources are often there, it’s more
the fact of facing the eventual.
Either way, schedule time with an estate planning attorney so
your loved ones don’t have deal with a messy situation.