Most California residents know that estate planning involves creating a legal structure for dispersing one’s finances after his or her death. A will may also provide instructions for health care preferences, funeral arrangements and power of attorney. While it may seem that these issues primarily affect people in older age brackets, there are numerous reasons to create an estate plan at a younger age.
Many people start to think about estate planning when they achieve certain milestones, such as getting married, having children or retiring. As many Millennials are taking longer to reach these milestones, a young person who does not have a spouse or significant financial assets may not think estate planning is necessary. However, dying without a will may have unintended consequences. According to FindLaw, when a person dies without a will, the state distributes that person’s assets according to existing laws. If there are no relatives that meet the requirements for receiving the estate, all assets then go to the state.
Making a will may prevent a person’s assets from simply going to the state by default. Through estate planning, one may ensure financial assets go to close friends or charitable causes. According to the National Law Review, estate planning may be especially important for Millennials. An estate plan may make it possible to provide financially for a cohabitating partner and ensure adequate care for pets. A will may also include instructions that give access and management of digital assets to a trusted agent. Although it may seem like estate planning is more relevant for older adults, there are several important reasons for a young person to take the time to make a comprehensive will.