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Events in a young person’s life that require a new estate plan

On Behalf of | Feb 22, 2024 | Estate Planning

For young people, certain life events can serve as wake-up calls. Such events may prompt them to consider creating or updating their estate plans.

These are some common scenarios that might lead a young adult to take action in planning their estate.

Heading off to college

Leaving home for college marks a significant milestone in a young person’s life. As they embark on this new journey of independence, it is important to consider what would happen to their assets and belongings should something unexpected occur. Establishing a basic estate plan can provide peace of mind.

Starting a career

Securing that first job brings a sense of accomplishment and newfound financial responsibility. With a steady income stream, young adults may start accumulating assets such as savings accounts or retirement funds. Creating a will or trust can dictate how other people should give away these assets in the event of incapacitation or death.

Getting married

Marriage is a joyous occasion, but it also signifies a merging of lives and assets. Whether this happens right after reaching adulthood or slightly later, couples may want to consider updating their existing estate plans to reflect their new marital status. Clarifying ownership rights, debt responsibilities and inheritance arrangements can prevent potential conflicts down the road.

Becoming a parent

Welcoming a child into the world is a transformative experience that brings immense joy and responsibility. For young parents, estate planning takes on heightened importance as they contemplate the well-being of their children in the event of unforeseen circumstances. Designating guardianship, establishing trust funds and setting up healthcare directives become important to safeguard their family’s future.

Buying property

Investing in real estate is a significant financial commitment that requires careful consideration. Whether purchasing a home or other property, young individuals should review their estate plan to reflect these new assets. Property ownership adds complexity to the distribution of assets, making it important to update beneficiaries and ensure seamless transfer of ownership in the event of death.

Estate planning is not just for the elderly or the wealthy. Rather, it is a proactive step that a young person may take for their future.