Estate planning tips for younger people

| Aug 18, 2020 | Estate Planning |

You don’t need to be old or have a significant net worth to benefit from having an estate plan. If you own property in Texas or any other state, you can transfer it to a beneficiary through a will or trust. These documents can also be used to appoint a guardian for your minor child. Without a will or trust, state law will likely determine how your assets are distributed.

Consider adding a durable power of attorney

A financial power of attorney allows you to appoint an agent to help you manage your assets. Generally speaking, your agent will take over for you in the event that you are in a coma or are otherwise not competent to make decisions on your own. However, your agent could be authorized to pay bills, represent you during a home sale or make other decisions simply because you are too busy to do so yourself.

Revocable trusts can be helpful while you are alive

The terms of your will don’t take effect until after you die. Therefore, it may not be enough to meet your needs if you can’t manage your affairs for any reason while you’re alive. However, the terms of a trust typically take effect as soon as the document goes into effect. If you are incapacitated, the trustee can distribute and otherwise manage trust assets on your behalf.

Ideally, you will take the time to create an estate plan regardless of how much or how little you own. Doing so may help assets transfer without the need to go through probate, and estate plan documents can be used to communicate any requests that you have regarding your funeral or burial. If you already have an estate plan in place, it is a good idea to review it regularly.