Here is a quick definition. An estate is all of the property that an individual owns. The property of an estate typically includes real property (such as a house or condo) and personal property (such as a painting, a tv, etc.). Personal property also includes bank accounts and money market accouts.. The process through which people arrange the transfer of their estate in anticipation of death is the process of estate planning. Estate planning helps an individual distribute real and personal property to his or her heirs. An estate plan aims to save the maximum amount of wealth for desired beneficiaries and it also provides flexibility to the individual prior to death.
Many people think that estate planning is only about choosing the person who you want to get your money after you die. But it is simply not the case. If you are not married and do not have kids, estate planning is essential for you, regardless the age and the money you possess. Single adults with relatively lesser money and other property, may need to take some important estate planning steps to ensure that their wishes come true after you die. Estate planning ensures that only the people you want receive your property and your loved ones are not burdened with your debts.
We are providing a complete set of information for youngsters about the essential parts of estate planning here:
Will is a legal document that describes who will inherit your properties. Most people fewer than 30 who have negligible assets and do not have children, may want certain people to receive certain possessions. If you want your mother to receive your Tiffany ring or you want your best friend to inherit your laptop, will is the way to go.
- Retirement Plan Beneficiary Designations
If you have an IRA account, you must make sure that your beneficiary designations remain up-to-dated. If you designated your parents or a sibling as beneficiary and later you got married you will have to update your beneficiary. Your husband or wife will not receive those assets automatically upon your death.
- Power of Attorney
Once you are an adult you are on your own and you must assign a power of attorney to a parent or any other trusted individual. Power of attorney can access you accounts if you are in an accident and designated representative can take financial decisions on your behalf.
- Health Care proxy
Health care power proxy is the person who takes your heath related decision if you end up at hospital and you are not able to take your decisions regarding heath.
- Digital Executor
Apart from these you must appoint a digital executor who can take care of you online accounts such as Google and Facebook after your death.
Estate planning may seem unnecessary for young adults but it is a vitally important task to perform. Taking a few steps regarding estate planning today can make sure that you get heath care and your desired people inherit your possessions.