Many people mistakenly think that estate planning is only useful for people who are either very old or extremely rich. However, more Colorado residents in their 20s and 30s are becoming aware of the benefits that estate planning can provide them.
Another mistaken belief regarding estate planning is that it only deals with what happens to a person’s money once he or she is deceased. Estate plans allow individuals to look out for their well-being in the event of a future accident or illness. People who plan their estates are able to ensure that the people and possessions that they treasure are also protected.
Individuals in their 20s and 30s are likely to experience more than a few life events that will change the shape of their lives. These events include graduating from college, purchasing their first home and starting a family. In addition to adding purpose to the lives of these young people that did not exist before, the events also highlight how important estate planning can become for young individuals.
A durable power of attorney is perhaps the most important document included in an estate plan. It specifies which of the estate planner’s trusted friends or family members becomes responsible for making financial decisions on his or her behalf in case he or she ever becomes unable to make these decisions on his or her own. Other documents important to the estate planning process include a living will, health care proxy, traditional will and revocable trust.
Individuals can always find a reason to explain why they have more time before needing to consider starting the estate planning process. However, it’s never too early for a person to seek protection for the people and belongs most important to him or her. People who are interested in estate planning may benefit from speaking to an attorney who is familiar with the process.