Whether you’re just finishing up college or trade school, or got lucky with a small cryptocurrency investment, many younger people don’t think they need an estate plan.  The biggest perception is that they don’t need to do any end of life planning unless they have children or a ton of money. 

A recent Gallup poll shows that over 50% of do not have a will that describes how their money and estate should be handled after death, and that only 20% of folks under age 30 have one.

You’re probably asking yourself – Do I even need one?

IT’S NOT JUST ABOUT DEATH – IT’S ALSO ABOUT WHEN YOU CAN’T COMMUNICATE

Most of us joke around and say the worst case scenario is “when I get hit by a bus”.

If that should happen, and you’re hospitalized and can’t communicate (because you’re unconscious), your family and loved ones are going to need some tools to help manage things while you’re in recovery.  The two tools are know as an Advanced Medical Directive and a Durable Power of Attorney.  The first tool allows a trusted person to help make medical decisions for you.  The second tool allows someone to step into your shoes to make sure bills are paid, and that this trusted person  can go talk to your employer and let them know what’s going on.  Your employer may have some additional benefits in such an emergency.

SO HOW MUCH DO I NEED TO HAVE BEFORE I THINK ABOUT MAKING A WILL OR A TRUST?

For example, In the State of California, if you have assets, including real estate, that is more than $184,500 (as of April 2022), you should consult an attorney to think about putting together a will or a trust or both.  These documents help the Court understand what you wanted to do with you money.  If your total assets are less than that, you may not need to make a will or a trust in California.  

It’s important to check in your local state if there are special rules.

If you have a pet or charity, it’s also important to get those into a will or a trust to make sure a Court respects your wishes to take care of these issues.

WHAT IF I DON’T HAVE A WILL OR TRUST?

If you happen to pass away and you and you don’t have a will or trust, the law considers you “intestate”.  They then go by a formula to distribute your personal assets to through a formula to your family members.  If you are in a “living together” relationship, unfortunately

RECAP

It’s never too early to make plans to take care of yourself and to let the important people in your life know how to make decisions if something happens to you. If you have a child or furbaby, it’s even more important to take this seriously.  Do make sure that you leave these important responsibilities to someone you trust.

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All articles presented on this website are considered general information should not be construed as legal advice. No attorney/client relationship is established or intended from simply reading this article.