You may hear people say that everyone needs to have an estate plan. At the same time, you’ll hear others say that estate planning is something to do after you retire or as you grow more advanced in age. Life expectancy is around 79, so people sometimes assume they should make a plan in their 60s or 70s.
So who is right? Is it helpful to have an estate plan at any age? Is it even possible to be too young to make an estate plan?
You can start at 18
Under Alabama law, you’re allowed to make an estate plan when you turn 18, in most cases. All you need to do is become a legal adult, and then you can begin drafting a will or using other estate planning tools.
Why would you need an estate plan at 18? For one thing, the average human life expectancy may be 79, but no one can predict when they will pass away. Young people are not immune to car accidents or fatal diseases. If you put off estate planning until your 60s or 70s, you could pass away before you get around to making the plan – leaving your family with no direction.
Additionally, you can use your estate plan to make important decisions, not just for passing on assets. For instance, a power of attorney can be used to allow an agent to make medical or financial decisions on your behalf. Even those without many assets can benefit from having a plan.
Getting started
If you’re interested in making an estate plan this year, just be sure you know what legal steps to take as you get started.