Young adult planning

Estate planning isn’t just for seniors

BY JERRY GOETZ

PRESIDENT OF RETIREMENT & FINANCIAL STRATEGIES

You should begin planning now, even if you are a young adult!

Estate planning commonly gets mistaken for planning seniors do when they begin to think about the latter parts of their life. However, estate planning is for all adult age groups.

Your estate consists of everything that you own. A few examples include the vehicle you drive, the house you live in, insurance polices you have purchased, savings accounts you have built, investments you have made, and retirement plans you have started. In most cases, many people already have many of these items even when they are just in their twenties.

Estate planning not only sets forth a plan of how your assets are managed or distributed if you become disabled, incapacitated or die prematurely, but also sets forth a plan for your loved ones. Who do you want caring for your children if you no longer can? Who do you want making health care decisions on your behalf if you are unable to make them for yourself? Who do you trust to transact your financial affairs if you are unable? Will your children from a prior marriage get anything? Will your assets go to a decedent of yours that is unable to manage their own finances? Will your assets be probated and end up causing emotional distress or hard feelings about the determined distribution? All the above questions can be addressed with estate planning. Do you really want the court in the state you live in to make these decisions for you and your family just because you failed to put anything in writing?

Planning your estate early and reviewing it periodically as your situation and needs change will not only put you, instead of the courts, in charge of your estate plan, but it also will help you stay organized and aware of your situation today. It is likely to provide a framework to help you make decisions on your current financial and investment plan so that you can work to improve your chances of putting yourself in a more tax efficient and more favorable distribution position both during your lifetime and after.

It is important to know that some things pass directly through contract instead of you last will & testament. Just a couple examples include your retirement accounts and life insurance policies which can have a named beneficiary on the contract. Things that pass by contract are equally important to plan and review as the things that pass through the probate process.

You likely will benefit by coordinating your estate plan with both your financial advisor and attorney. Your financial advisor may be skilled in the planning and implementation, but most financial advisors are not attorneys and cannot draw up the legal documents. Attorneys are skilled in the legal aspects and will be able to help you with that part of your estate plan.

Article written by: Jerry Goetz, President of Retirement & Financial Strategies. Investment advice offered through Private Advisor Group, a registered investment advisor.

Building Your Retirement Foundation Jerry Goetz CFP®, CFS®, CRPC® www.retirementandfinancial.com

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