Do Young Adults Need Estate Planning?

Do young adults need estate planning
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Highfalutin terms like “estate planning” can put off younger adults and conjure grandiose notions of excessive wealth.

Estate planning has an image problem, particularly with younger generations, says The Financial Post’s Nov. 15 article entitled, “The case for estate planning in your 20s: At any age, some things are dear to you.”

If you are 22 and don’t own a home, aren’t married, and have no dependent children, writing a will may seem like a waste of time and money. However, if you ask yourself, “what do you want to happen to your treasures if you pass away?

A young adult will have no say over what happens to their treasures after death with no estate plan.

A recent survey shows very few young adults have an up-to-date will. It is less than 20%.

One reason for this poor result is that the term “estate planning” makes the process seem inaccessible or irrelevant for anyone not of a certain age or with significant assets.

However, considering your wishes earlier in life when your needs are more straightforward can make the process feel more natural and manageable when your life — and conditions — become more complex as you get older.

The pandemic is a reminder that none of us knows for sure if we will have a later.

Drafting a will gives you the power to decide where everything from your savings and investments to your sentimental belongings and even your pets will go when you pass away.

Many people wait until they get married, buy a house, or have kids to draft a will. However, every adult needs one. Think about what would happen to your assets and property if something happened to you.

People with spouses often mistakenly assume everything will go to that person if they have no will in place.

However, state law will dictate what assets will go to their spouse and what might go to other relatives, such as their parents. If that’s not how you would have wanted it to go, you’re out of luck.

Leaving an up-to-date record of your wishes is the best thing you can do for your family.

Reference: Financial Post (Nov. 15, 2021) “The case for estate planning in your 20s: At any age, some things are dear to you.”