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Why estate planning is essential even when you’re young

On Behalf of | Sep 9, 2022 | Estate Planning

It’s argued that everyone should have a will, even if you don’t have an estate to consider distributing. Many young people wait to write their will until they’ve developed more assets, bought a home and created a nest egg.

While a large focus of a will is asset distribution and beneficiary designation, that’s not the only thing a will is good for. Young adults may consider creating a will for the sake of their health and finances. Here’s what you should know: 

Powers of attorney are essential for your future safety

In your will, you can designate someone to act as your power of attorney. A power of attorney is a special role taken while the testator is still alive. Many people designate one person as their power of attorney, however, the role can be split into two:

  • A medical power of attorney (MPOA): this role allows someone to make medical decisions on the behalf of the testator. This could mean deciding if the testator will undergo surgery or follow a medical procedure.
  • Financial power of attorney (FPOA): this role allows someone to manage finances if the testator is incapacitated. This could mean paying for medical bills, rent or other expenses on the testator’s behalf.

Much like a medical power of attorney, a financial power of attorney is active while the testator is incapacitated, unlike the MPOA, an FPOA can take on a “springing: role. A “springing” power of attorney allows someone to make investments for the testator while they’re away traveling or on business trips.

Are you ready to make a will? You may need legal help who can guide you through the process and ensure you’re doing everything to ensure your legal document is in order.