Think You Are Too Young to Need an Estate Plan? Think Again.

The Pandemic and Estate Planning: A Positive Shift

The pandemic has led to many behavioral changes among Americans, and one of the most positive changes is the increased attention to estate planning. For the first time, Caring.com’s 2021 Wills and Estate Planning Study found that young adults are now more likely to have an estate plan than middle-aged adults.

In 2020, only 16% of Americans aged 18 to 34 reported having a will or other estate planning document. By 2021, that percentage had risen to 26%—a 63% increase in just one year. Conversely, the number of 35 to 54-year-olds with an estate plan decreased from 27% in 2020 to 22% in 2021.

This shift is particularly encouraging because young adults are typically the least likely to engage in estate planning. The study found that 45% of the 18 to 34-year-olds surveyed were motivated by COVID-19 to start their estate plan. However, it shouldn’t take a global pandemic to make young people realize the importance of estate planning.

All adults over 18 should have basic estate planning documents, regardless of their financial status, marital status, or whether they have children. If the pandemic didn’t inspire you to create your estate plan, here are four reasons why you shouldn’t wait another day.

1. Incapacity Leaves You Vulnerable

Many people think estate planning is only for after they die, but that’s not true. Planning for potential incapacity due to an accident or illness is equally important.

If you become incapacitated without an estate plan, your family would need to petition the court to appoint a guardian or conservator to manage your affairs. This process can be costly, time-consuming, and traumatic. The court might appoint a family member you wouldn’t want or a professional guardian, giving a stranger control over your life and assets.

Proper estate planning allows you to designate who will make medical, financial, and legal decisions for you if you become incapacitated. You can also specify how you want your medical care managed, including end-of-life decisions.

2. Control Who Inherits Your Assets

If you die without an estate plan, the court will decide who inherits your assets based on state laws. These laws prioritize spouses and children, followed by other close relatives. If no relatives are found, your assets go to the state.

Proper estate planning ensures your assets are distributed according to your wishes. Unmarried partners and close friends would get nothing without a plan. Even if you’re married with children, dying without a plan can lead to unintended consequences, such as disinheriting children from a previous relationship or giving assets to children too young to manage them.

3. Keep Your Family Out of Court and Conflict

Without an estate plan—or with only a will—your family will have to go through probate, the court process for settling your estate. Probate can be slow, costly, and public, and it can take months or years to complete. After debts, taxes, and court fees are paid, there might be little left for your loved ones.

Proper planning, such as using a trust, can help your assets pass directly to your family without court intervention, reducing the expense and drama.

4. Minimize the Mess

Without proper planning, someone you love will have to deal with the mess you leave behind. They’ll have to figure out what you own, where it is, and how to access it. Proper estate planning minimizes this mess by providing clear instructions, making it easier for your loved ones to handle your affairs.

5. Ensure Your Kids Are Raised by the People You Trust

If you have minor children, the most devastating consequence of not having an estate plan is what could happen to your kids if you die or become incapacitated. Without a plan, a judge will decide who cares for your children, which might not align with your wishes.

Naming legal guardians for your kids ensures they are cared for by the people you trust. This won’t keep your family out of court, as a judge must finalize the naming of guardians, but it provides clear direction.

Additionally, you need to plan for the immediate term to prevent your kids from being placed with strangers while authorities figure out what to do.

Stop Making Excuses

While many were motivated by the pandemic to create an estate plan, the 2021 Caring.com study found that more than one in three Americans still don’t think estate planning is important or haven’t thought about it. But not having an estate plan can be traumatic and costly for your loved ones.

You can’t afford to delay creating your estate plan any longer. Proper planning spares your loved ones from unnecessary stress, conflict, and expense, and it provides peace of mind knowing they’ll be cared for no matter what happens to you.

Don’t wait another day—contact us now to schedule an appointment and finally check this urgent task off your to-do list.

This article is a service of Zarda Law, S.C. We do not just draft documents; we ensure you make informed decisions about life and death, for yourself and the people you love. That's why we offer a Legacy Planning Session, during which you will get more financially organized than you’ve ever been before and make all the best choices for the people you love. You can begin by scheduling a Legacy Planning Session and mention this article to find out how to get this $750 session at no charge.