My Nana recently passed away and I found myself searching online for something that would help ease some of the pain I was feeling. I stumbled across a quote by Carrie Jones, which I felt perfectly described how I felt, “Losing people you love affects you. It is buried inside of you and becomes this big, deep hole of ache. It doesn’t magically go away, even when you stop officially mourning.”
We’re reminded far too often these days that lives can change in the blink of an eye. Until I started working as a financial planner, I’d never considered setting up an estate plan for my family after I pass. In fact, my first thought when even hearing that phrase was, “Estate planning? Aren’t I too young for that?” The short answer, no, I’m not. And while it may seem grim to plan for your death when you’re in the prime of your life, it’s also important, responsible and incredibly helpful to your loved ones. We’re talking adult-ing level 100 here!
The good news is I figured this out so my friends and fellow millennials don’t have to! So, what goes into basic estate planning, exactly? Let’s break it down.
- Last Will & Testament
A legal document that allows you to state your wishes on how your estate should be distributed. It is especially important for anyone that still has minor children. Without a will, state law dictates what happens to your estate. - Living Will
A legal document that indicates the specific medical care someone over the age of 18 wants or does not want to happen in the event they are unable to make these decisions themselves. - Power of Attorney / Health Care Proxy
A legal document that gives someone else the ability to act on your behalf. It is a tool that can allow a trusted individual to make decisions on financial or health related matters in the event you become incapacitated. - Life Insurance
A contract with an insurance company that promises the payment of a specific death benefit to a stated beneficiary in exchange for premium payments. Life insurance can be used to cover specific goals, such as children’s education, supplement income, paying off outstanding debt (i.e. a mortgage or student loans), or even cover the costs of funeral expenses.
It’s a simple thing to do to save yourself and your loved ones extra stress at an already overwhelming time. It may seem insane to think about estate planning at such a young age. I used to think so! But as my parents always told me, it’s better to be safe than sorry.
