Many young professionals assume that estate planning is something to think about later in life. In reality, having an estate plan in place is important for anyone over the age of eighteen. Whether you are building a career, purchasing your first home, or managing growing financial responsibilities, having a plan in place protects you and the people who depend on you. Understanding what should be included in a first estate plan helps you make thoughtful decisions and gives you peace of mind as you move forward in your personal and professional life.
Why young adults need an estate plan
Once you turn eighteen, your parents or guardians can no longer make medical or financial decisions on your behalf. If an emergency occurs and you are unable to communicate your wishes, important decisions may be delayed without the proper documents in place. Young professionals often have digital assets, online accounts, vehicles, savings, and employer-provided benefits that need direction. An estate plan ensures that your assets and personal information are managed according to your wishes.
Essential documents for your first estate plan
There are several key documents that every young adult should include when creating an estate plan.
A will
A will allows you to name beneficiaries for your property and personal belongings. Even if you do not have substantial assets, a will provides clear instructions and removes confusion for your loved ones. It also allows you to name an executor who will carry out your wishes.
A durable financial power of attorney
This document gives someone you trust the authority to manage your financial affairs if you become unable to do so. This may include paying bills, accessing bank accounts, or managing important paperwork. Without a financial power of attorney, your family may need to go through a court process to make decisions on your behalf.
An advanced healthcare directive
An advanced healthcare directive outlines your medical preferences and designates someone who can make decisions for you if you cannot communicate. This is important for individuals of every age, not only older adults. A clear healthcare directive helps avoid uncertainty during medical emergencies.
A HIPAA authorization
A HIPAA authorization allows medical providers to share information with the individuals you choose. Without it, your loved ones may not be able to receive updates about your condition.
Digital asset instructions
Young professionals often have a large digital footprint. This may include email, social media accounts, cloud storage, business accounts, cryptocurrency, and online banking. Including digital instructions in your estate plan ensures that your accounts are accessed, closed, or preserved in the way you prefer.
Additional considerations for young professionals
If you have purchased a home, started a business, or built significant savings, you may also benefit from creating a trust. A trust can help you avoid probate, simplify the transfer of assets, and provide privacy. It can also give detailed instructions for how and when property should be managed.
Beneficiary designations should also be reviewed regularly. Life insurance, retirement accounts, and other financial products pass directly to the beneficiaries listed on the account, regardless of what your will says. Keeping these designations current is essential.
Building a strong foundation for the future
Estate planning for young professionals is about more than distributing property. It is about protecting your wishes, safeguarding your digital and financial life, and reducing stress for your loved ones if the unexpected occurs. Starting early gives you a strong foundation that can grow with you as your life changes.
Schedule your consultation today
If you are ready to create your first estate plan or update an existing one, we can guide you through the process with clarity and care.
Call 530-343-3454 to schedule your consultation and take the first step toward protecting your future.