Why a recent college graduate needs an estate plan
Estate Planning is often thought of as something that only older adults and those with significant assets should be concerned about. This is unfortunate, because estate planning is just as important for young adults. To help you get started, the Indianapolis attorneys at Frank & Kraft explain why a recent college graduate needs an estate plan. To get you started, the Indianapolis attorneys at
Frank & Kraft
explain why a recent college graduate needs an estate plan.
- Why Estate Planning Matters for Young AdultsGraduating from college marks a major transition. You may be starting out on your own, creating a budget and saving for the future. You might even be considering starting a new family. Establishing an estate plan at this crucial stage offers several benefits:
- Protecting Your Assets and Interests: Even if you do not own much yet, you might have a car, savings, or valuable personal items. You can designate who receives your assets in the event of your death. Without an estate plan, state laws will determine the distribution of your assets, which may not align with your wishes.
- Healthcare Decisions: Unexpected medical emergencies can occur at any age. With advance directives like a Living Will and a Healthcare Power of Attorney, you can ensure that your healthcare preferences are known and respected if you cannot make decisions yourself.
- Financial Management: A Durable Financial Power of Attorney appoints someone to manage your financial affairs if you become incapacitated. This includes managing accounts, paying bills, and handling investments. Without this document, your family might have to go through a lengthy court process to manage your finances.
- Digital Assets and Online Accounts: Growing up in the digital age means you likely have numerous online accounts. Your estate plan can include instructions for managing these digital assets, ensuring they are handled according to your wishes.
Providing for Dependents (Including Pets):
If you have dependents or pets, your estate plan can specify their care if you are unable to do so. You can name guardians for your children and designate caretakers for your pets, even setting up a pet trust to fund their care.
- What Should Be in the Estate Plan of a College Graduate?Every estate plan should be uniquely tailored to the needs of the individual creating the plan; however, there are some documents and components found in the average estate plan of recent college graduates, such as:
- Last Will and Testament: The cornerstone of any estate plan, a Last Will and Testament lets you specify how your assets will be distributed and who will serve as the Executor of your estate. You can also name guardians for your minor children.
- Durable Power of Attorney: This document appoints someone to manage your financial affairs if you become incapacitated, handling tasks such as paying bills and managing investments.
- Healthcare Power of Attorney: This designates someone to make medical decisions on your behalf if you are unable to do so, ensuring your healthcare preferences are honored.
- Living Will: A Living Will outlines your preferences for end-of-life care, such as whether you want life-sustaining treatments. This provides guidance for your healthcare agent and medical providers.
- Beneficiary Designations: Assets like life insurance policies and retirement accounts allow you to name beneficiaries directly, bypassing probate and ensuring immediate distribution to your chosen individuals.
- Digital Estate Planning Component: Given your digital presence, this part of your plan provides instructions for managing your online accounts and digital files, including login information and guidelines for social media profiles and digital financial accounts.
Letter of Intent:
Although not legally binding, a Letter of Intent can offer additional guidance for your Executor and loved ones. It can include your personal wishes, funeral arrangements, and other helpful information.
Estate planning ensures that your affairs are in order, providing you with peace of mind as you navigate your post-college life.Are You Ready to Get Started with Your Estate Plan?For more information, please join us for an upcoming FREE seminar. Call Frank & Kraft or
(317) 684-500 for an appointment if you are a recent graduate in Indiana and are ready to start your estate plan. Mr. Kraft’s primary areas of expertise are estate planning and administration. He also assists clients in the areas Medicaid planning, federal, state, and corporate taxation. Latest Posts by Paul A. Kraft Estate Planning Attorney (see all)01001010
