Estate Planning for the Younger Crowd

If you are in your 20s or 30s you may not have given thought to estate planning. However, creating a basic estate plan may help protect you if the unforeseen happens.

A Will

A will specifies how you want your property distributed and names an executor or personal representative to carry out your wishes. Property can include digital assets, such as photos, important documents, passwords, etc., and you can specify who can access which accounts and what should be done with them. You can also name a guardian in your will for any minor children.

Living Will and Health Care Power of Attorney

A living will, or medical directive, specifies what lifesaving medical treatment you would or would not want in the event you’re incapacitated and cannot speak for yourself. A health care power of attorney names someone you trust as your advocate to make medical decisions for you if you can’t make them yourself.

Financial Durable Power of Attorney

This document authorizes someone to act on your behalf in financial matters if you are unable to do so yourself.

Term Insurance for Student Loans

Federal student loans and Parent PLUS loans are automatically discharged if the borrower dies while the loans are outstanding. But, if someone cosigned for a loan from a private lender that lender may require repayment from the cosigner. A term life insurance policy with a benefit in the amount of the outstanding loan could protect cosigners by providing the cash needed for repayment.

Caring for Pets

For most pet owners, pets are members of the family. Adding a pet guardianship clause to your will can ensure that your pet(s) is cared for by a specified person. Funding a pet trust to pay for food, veterinary care and other expenses and selecting a trustee to manage the funds can ensure your pet receives lifelong care.