Estate Planning: Addressing Needs at Every Age and Stage
Everyone can benefit from creating an estate plan, no matter your age or stage of life. The needs change over time, but the importance of having the right documents in place stays the same.
Estate Planning at Age 18 (Young Single Adult)
Turning 18 means new independence and new responsibilities. While you may not own a home or have significant assets, it’s still smart to have basic protections in place. A young person off to college or getting started in a new career likely isn’t worrying about death or incapacity. While they may not own a home or have any assets, a young person can always have a health event.
An advance medical directive allows a person to appoint a healthcare agent to make decisions if they are unable, grants access to their health records, and outlines their wishes for medical treatment.
A durable Power of Attorney can allow a person to identify an agent to assist in financial and contractual matters, in the event of incapacity or unavailability. For those college students, a properly executed.
The FERPA Waiver lets a young adult student authorize an agent to access student records and communicate directly with college administration, such as the bursar’s office, to resolve financial aid or payment issues on their behalf. Remember, once you’re over eighteen (18), Mom or Dad can’t access this information or handle these transactions for you.
Estate Planning for Young Adults (20s–30s)
As you start your career and begin acquiring assets, estate planning becomes even more critical. In addition to a Durable Power of Attorney and an Advance Directive, once a young adult begins to earn an income and perhaps acquire assets, i.e., a car, a home, investment accounts, bank accounts, it’s necessary to prepare a:
Last Will and Testament (a Will) to nominate the person(s) to administer their estate and to direct how their assets should be distributed. While death may feel far off, none of us can predict the future. Failure to establish a valid Will results in your assets being distributed according to Maryland statutes instead of your wishes.
In addition, at this stage, it is important to make beneficiary designations on accounts, retirement plans/401(k), and life insurance.
Estate Planning for Parents of Minor Children (20s–50s)
In addition to the above, once children enter the scene, it is essential to plan and provide for those children if the unexpected occurs.
Parents should nominate a guardian for any children under eighteen.
Parents may want to consider establishing a Trust, both because their assets have grown and are likely to continue growing, and because they want to provide maximum flexibility, privacy, efficiency, and specificity for the care of their children.
This is also an important time to review and update beneficiary designations on accounts, retirement assets, and life insurance.
Estate Planning in Retirement and Beyond
Your focus may shift toward preserving assets, long-term care, and legacy planning.
As you enter the “Golden Years,” concern for your children may change. Your focus may shift to preserving assets and long-term planning. At this stage, it is important to consider whether your plan is currently updated to reflect your life status.
You might consider updating your agents or personal representative/trustee to name an adult child now, for example.
It is important to consider planning for long-term care and protecting resources to achieve that goal.
This may also be a time when you wish to consider planning for charitable giving and/or making plans to make gifts during your lifetime. You may even want to update your plan to provide for grandchildren.
When to Revisit Your Estate Plan
As you enter each stage, it is important to evaluate your plan. In addition, it is a good idea to evaluate your plan whenever there is a death, birth, or divorce in your family. Or, if you relocate or acquire property in another state.
It’s wise to review your plan at significant life events:
Death, birth, or divorce in your family
Relocating to a new state
Acquiring property in another state
Contact Maguire Law at any stage to get started on creating or updating your plan.
*This blog is for educational purposes and does not constitute legal advice.
BOOK A FREE 30-MINUTE PRELIMINARY CONSULTATION
Click the button below to schedule a free 30-minute virtual consultation with Maguire Law to see if we’re a fit.
30-MINUTE ZOOM CALL
