Advice For Minnesota Estate Planning For Those Under 40

The sad fact is that less than half of all Americans have an existing estate plan.

Though there are many reasons why people put off creating an estate plan, one common refrain is that people feel they are “too young” to begin worrying about estate planning. For those under 40 years old, death may feel far off, but the reality is that no one is ever too young to begin making plans for what they want to have happen once they’re gone.

U.S. News and World Report recently discussed the issue of estate planning for those under 40 and provided some useful bits of advice for why younger people should still consider scheduling a meeting with a local Minnesota estate planning attorney and begin the process of laying out a workable estate plan now.

Money shouldn’t matter

The first bit of advice contained in the U.S News article noted that many people under 40 believe that because they may not have much in the way of assets there is no reason to begin crafting an estate plan. After all, there’s no need for a trust fund when all you have is credit card debt and a mortgage payment.

While it’s true that those under 40 may not yet have the same kind of assets to protect as older individuals, that doesn’t mean that an estate plan still isn’t useful. Estate plans exist so that you can instruct others how you want your property divided and decisions dealt with after your death. Your net worth has no impact on that larger objective. Additionally, those with relatively few assets may have even more reason to get a plan in order because it becomes even more crucial that your children or other loved ones receive what you do have.

Start difficult conversations sooner rather than later

Making a comprehensive estate plan can be tricky given the difficult issues you will need to confront. However, as with many things, it is better to confront the issues head-on rather than wait and hope they sort themselves out. By starting asking difficult questions and informing your loved ones about your wishes while you are hopefully still decades away from confronting them, you can start getting them used to the idea. Tell those closest to you what your plans are and what you’d like to see happen after you’re gone, doing so early on can avoid a lot of confusion later.

Pay attention to the basics

For those younger than 40 who are just starting to establish an estate plan, it can be a good idea to begin the process by focusing on the basics. That means establishing a life insurance policy, creating a basic will, a healthcare directive and power of attorney. These are all seen as building blocks of a long-term estate plan and can all be established with relative ease. Taking time to meet with an experienced Minnesota estate-planning expert now can go a long way to putting you on the right track for later in life when your estate may become more complex.

Reevaluate

Though beginning the process is an important step in creating a useful estate plan, it isn’t the last step. Once you’ve started the process, you have to then reevaluate at least every five years. You should also expect to sit down and make changes after you’ve experienced a major life event, such as a birth, death, marriage or divorce. Doing this will ensure that the documents you have drafted continue to adapt and reflect the nature of your life now.

Though it may be confusing, creating an effective estate plan does not have to be an overly complicated process. An experienced Minnesota estate planning lawyer can help walk you through the process of establishing or updating a will or trust. For more information on estate planning in Minnesota, along with a variety of other topics, contact Joseph M. Flanders of Flanders Law Firm at (612) 424-0398.

Source: “Estate Planning Tips for People Under 40,” by Sienna Kossman, published at USNews.com.