Adulting isn’t easy. While living on your own is an adventure in independence, it also has its downsides, such as paying rent and scheduling your own doctor and dentist appointments.
You can now add “estate planning” to that list because it’s not just for people who are old or wealthy. No matter your age or socioeconomic status, everyone needs an estate plan.
Why estate planning matters
Estate planning isn’t just about wealth. It’s also about control and protection. Life is full of unexpected events, such as accidents, illnesses or sudden incapacity. These can happen to anyone at any time, and without a plan, the courts will decide what happens to your assets and who will make decisions for you.
Your estate plan doesn’t need to be elaborate. Here are the elements that you may want to include:
- A will: Decides who will inherit your belongings, even if they are just sentimental items. If you have pets or dependents, you can also name a guardian for them. Michigan allows pet owners to set up trusts for their pets, so you can also provide funds to care for your furry friends.
- Power of attorney: Appoint someone to handle financial matters, such as paying rent and utilities, if you’re incapacitated.
- Healthcare proxy or living will: Ensure your medical wishes are respected if you can’t communicate them.
- Beneficiary designations: Certain assets, like life insurance, retirement plans and bank accounts, allow you to name beneficiaries.
- Digital assets: You can determine how you want online subscriptions, social media accounts and digital files handled if you pass away.
By creating an estate plan now, you can have the assurance that your wishes will be honored. Your loved ones won’t need to worry about making difficult decisions during a traumatic time. Discuss your goals with a legal professional who can provide guidance in drafting an estate plan that meets your specific needs.