When it comes to an estate plan, many people think of older, wealthier people with many assets and property.
That concept may factor into while only 33% of American adults have a living trust or will, according to Caring.com. An estate plan actually involves putting together vital documents to ensure your wishes get met in both life and death.
1. Create a will
No matter your age or situation, every adult should have a will. This essentially details where you want your belongings and assets to go upon your death. Typically, you will name an executor to carry out your plans. If you have children, the will should include who should care for them. Not all assets get included in a will. You will need to ensure other documents, such as life insurance, list the proper beneficiaries.
2. Designate a power of attorney
Life comes with the unexpected. In some cases, that may mean the inability to handle financial matters. Choosing a power attorney means naming a person who will work on your behalf regarding financial matters if you become incapacitated. That will include paying bills, taxes, medical expenses and more.
3. Have an advance directive
From a serious illness to an unexpected accident, a health event may happen. An advance directive lets you list out your desires if such an incident happens. You will also want to designate a healthcare proxy, a person you authorize to make medical decisions for you.
Making end-of-life plans often causes hesitation. Regardless of your age, you and your family will benefit from already having a plan in place.