It is a common misconception that you should only plan your estate when you’re old and have a lot of money. While it is important for older adults to settle their estate while they are still capable, it doesn’t mean younger people can’t start early.
This is a contributed post and does not necessarily reflect the opinions of Meet The Harris Family.
Before you get estate planning services in Townsville or any other location, here is an age-by-age guide for you:
During your 20s
For most people, their 20s are the time for fun, excitement, and opportunities. However, this is also the time when you no longer have your parents to make financial or healthcare decisions on your behalf. At this time, you should have:
- Healthcare Directive:This document will allow a loved one to make medical and end-of-life decisions when you no longer have the capacity to do so.
- HIPAA Release: You must obtain and sign this form so that your loved ones can access your protected health information.
- Power of Attorney: In your 20s, you would want to have a healthcare power of attorney and financial power of attorney, which will give your loved ones the ability to make healthcare and financial decisions when you suddenly become incapable.
During your 30s
In your 30s, you will probably have started a family already and made significant financial investments, such as a house and a car. To protect your family and your assets, you should have:
- Will: If you started your family in your 20s, it is advisable to draft your will as soon as possible. It becomes more crucial in your 30s. This document will specify who will inherit your assets after you pass away, who will take care of your children if you lose the ability to do so, and who will settle your estate after you die, among many other specifications.
- Trust.To create a trust, you must have a trustee who you want to have rights to your assets if you are suddenly incapacitated.
Your 30s are also the best time to acquire life insurance and disability insurance if you don’t have one yet. A life insurance policy can provide for your family for some time after you pass. On the other hand, disability insurance will safeguard you and your family if you suddenly become unable to earn an income.
During your 40s and 50s
Make changes to your will or trust as needed, in case of a death in the family or an addition of a new family member. At this age, you should also start looking into long-term care insurance as early as possible as the chance of rejection becomes higher as you age.
During your 50s, you will probably be done paying off your mortgage. That said, you can start putting more money in your 401(k).
During your 60s and beyond
At this age, you should already have a clear estate plan. If there are changes to your beneficiaries or last wishes, you can do so with the help of an attorney or your trustee.If you have everything taken care of by 65, you can enjoy retirement without any worries.
It’s never too early to start estate planning, but it can be too late if you wait until your 50s or 60s. With this simple guide, you should be able to plan your estate more efficiently.
