Is Estate Planning (Last Will) only for Old People?

 


People often assume estate planning is something to do when you have a family or are elderly. Still, it can begin as early as your late teens.

When parents talk with their kids at the dinner table, estate planning probably doesn't come up, but considering they aren't immortal, it should. It's worth having age-appropriate conversations to introduce children to the idea of estate planning as children grow older; parents can provide more specifics about their plans and eventually assist their children in developing their own plans as adults.

Run them through your estate plan.

If you have an estate plan in place, consider running your children through it so they have an idea of what's included in one. Talking through your estate plan also gives your children a chance to know important information, such as who you have chosen as a state executive or administration, the person who manages your estate after you die, and who has Power of Attorney for financial and healthcare decisions. If your children will be executors, that's more reason to talk to them through the plan.

Parents with underage kids may want to share information about who will take care of them if something happens prematurely. Parents either get sick or die, and they still have teenagers who don't know if it's going to be a grandparent, uncle, godparent, or a family friend who's going to help guide them. Adult children should know where important estate documents, such as the original will trust, power of attorney, healthcare directives are as well as the list of accounts and login information.

Emotional Aspects of Estate Planning

Estate planning isn't just financial; it can also be an emotional affair. Coming to terms with mortality as a child or parent can be challenging, but remember, it's a way to care for yourself and your loved ones.

Estate Planning for Young Adults and Children

It's easy for young adults to feel like they don't need an estate plan. After all, they are just beginning their lives as a adult, so they may have few or no assets. However, Parents could start talking to children about plans as young as 14. Any adult in college and entering a career needs an estate plan. One way our children can protect these assets is by appointing a financial power of attorney. It's a legal document that enables a trusted person to make financial decisions on your behalf. Young adults could also benefit from having a durable power of attorney for healthcare in case they need someone to make healthcare decisions on their behalf. If they are incapacitated.

Some people don't realize many of these estate planning documents can be more important when you are alive than after your death.

Keep it simple.

How you approach talking about estate planning with your children often depends on their age, no matter how old, start by keeping it simple. Don't burden them with anything too heavy, too early; it could be overwhelming, but you just take it one step at a time.


ACTION STEPS

  • Have a conversation with children about estate planning, starting as early as age 14.
  • Provide children with information about the estate plan, including who will manage the estate and have power of attorney.
  • Encourage young adults to create their own estate plans, including a financial power of attorney and a healthcare power of attorney
  • Approach estate planning discussions with children in a simple and gradual manner, avoiding overwhelming them

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Suman Manjrekar

Infinite Wealth Coach

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