When you think of estate planning, you might picture someone well into retirement, managing a complex portfolio of assets and properties. The reality is that estate planning isn’t just for the wealthy or the elderly, it’s for everyone. No matter where you are in life: in the early stages of your career, in the middle of raising a family, or looking at retirement, it’s important to have a plan in place. Regardless of your net worth or assets, estate planning is a way to protect your future and ensure your wishes are honored.

Why Estate Planning is Essential for Everyone

From the moment you turn 18, you become a legal adult, which means you are responsible for important decisions about your health, finances, and personal affairs. If something were to happen and you couldn’t speak for yourself, whether due to illness or an accident, who would make decisions on your behalf? Without estate planning documents, that decision may fall to someone who doesn’t know your preferences or wouldn’t normally have the legal authority to act on your behalf.

Here are a few reasons why estate planning is critical for every adult, no matter how young:

1. Healthcare decisions – If you’re unable to communicate your wishes, who will make decisions about your medical treatment?

2. Financial management – Who will manage your finances or access your accounts if you are incapacitated?

3. Digital legacy – Who will handle your online accounts, subscriptions, or social media profiles if you pass away or are unable to?

Even if you don’t have significant assets or financial responsibilities, estate planning is about ensuring that your personal, financial, and health decisions are managed according to your wishes.

What Types of Assets Do You Have?

It’s easy to assume that estate planning is only for people with substantial wealth, but that’s not true. Most people have valuable assets—both tangible and intangible—that should be considered when planning your estate. These include:

• Personal belongings: Furniture, jewelry, heirlooms, or sentimental items.
• Pets: Who will take care of Fido if you’re no longer able to?
• Retirement accounts: 401(k)s, IRAs, or other retirement savings plans.
• Vehicles: Cars, motorcycles, recreational vehicles, or even bicycles that are owned by you.
• Your own health: Conveying your own health wishes and having someone designated to make healthcare decisions aligned with those wishes, if needed,  is a crucial.

Beyond physical assets, digital assets are also important. Today, most of us have a significant online presence, including:

• Social media profiles (Facebook, Instagram, LinkedIn)
• Streaming services (Netflix, Spotify, Hulu)
• Financial apps (PayPal, Venmo, online banking)
• Email accounts
• Cloud storage with photos, documents, or videos (iCloud, Google Drive)
• E-commerce accounts (Amazon, Etsy, eBay)

These accounts often contain valuable information and memories that need to be managed or closed out in the event of death. Logging these assets with passwords and access instructions is an important part of your estate plan. To get started, our previous blog article, Digital Assets 101, has a simple inventory worksheet you may find helpful.

Three Key Documents Everyone Should Have

Estate planning isn’t just about writing down who gets your stuff. There are multiple documents that play a crucial role in ensuring your wishes are followed. These three key documents should be a part of everyone’s estate plan, regardless of age or wealth:

1. Advance Healthcare Directive. An advance healthcare directive allows you to specify your medical preferences if you cannot communicate your wishes. This document lets your loved ones know whether you want life-saving interventions, organ donations, or specific treatments. It also gives them the legal authority to make healthcare decisions on your behalf.

2. Power of Attorney. A power of attorney (POA) grants a trusted individual (or individuals) the authority to manage your finances if you’re unable to do so. This can include paying bills, accessing bank accounts, managing investments, or making financial decisions. Without a POA, your loved ones may face long legal battles to access your finances or make decisions on your behalf.

3. Simple Will. A will outlines how you would like your assets—whether large or small—to be distributed after your death. This includes everything from your financial accounts to personal belongings and pets. A will also allows you to name guardians for minor children if you have them, ensuring that they are cared for by someone you trust. However, a will only controls assets that don’t have a beneficiary attached, such as a life insurance policy or a retirement account (like an IRA or 401(k)). In these cases, the named beneficiary typically receives the asset directly, bypassing the instructions in the will.

Review your beneficiaries! A perk of estate planning is it forces you to gather your documents and review beneficiary designations. Older accounts may still have your parents listed instead of your spouse, or an ex-spouse instead of your current one! By periodically checking and updating beneficiary designations on accounts like life insurance, retirement plans, and bank accounts, you can avoid disputes and ensure your loved ones are properly cared for.  

Estate Planning is Peace of Mind

At its core, When you think of estate planning, you might picture someone well into retirement, managing a complex portfolio of assets and properties. The reality is that estate planning isn’t just for the wealthy or the elderly, it’s for everyone. No matter where you are in life: in the early stages of your career, in the middle of raising a family, or looking at retirement, it’s important to have a plan in place. Regardless of your net worth or assets, estate planning is a way to protect your future and ensure your wishes are honored. By making important decisions now, you take control of your future and ensure that your wishes are respected—no matter what life brings. It’s not about having millions of dollars in assets; it’s about ensuring that your healthcare, finances, and personal matters are handled the way you want.

Our financial planners work with clients of all ages on estate planning, helping clients think about their estate from a broader perspective and equipping them to have productive conversations with estate attorneys. Although we don’t draft legal documents, we can work with your estate attorney (or can refer you to one) so your financial planning and formal estate documents are aligned for your financial future.

Reach out for an introduction if you’d like to learn more about the value of working with us.