Turning 18 marks the beginning of legal adulthood and comes with several significant implications in the eyes of the law. Here are five essential legal aspects that young adults should be aware of when it comes to estate planning.
1. Legal Independence at 18
When a young adult reaches the age of 18, they gain legal independence. This means young adults are now responsible for making their own decisions about healthcare, finances, and other personal matters. However, it also means that nobody else, including their parents, has automatic legal authority to make decisions on a young adult’s behalf.
2. Medical Decision-Making
In the event of a medical emergency or incapacity, young adults need to have a plan in place. Without proper documentation, hospitals and healthcare providers may not consult with anyone other than the patient themselves. To address this, young adults should consider creating a Healthcare Power of Attorney, which designates someone they trust to make medical decisions on their behalf.
3. Financial Matters and Durable Power of Attorney
Similarly, in financial matters, young adults need to designate someone they trust to manage their finances if they become unable to do so themselves. A Durable Power of Attorney allows young adults to appoint an agent to handle their financial affairs, pay bills, and make financial decisions if necessary.
4. Your Assets and Beneficiary Designations
Even as young adults, individuals may have assets like bank accounts, retirement accounts, and life insurance policies. It’s crucial to review and update the beneficiary designations on these accounts regularly. By doing so, young adults can ensure that their assets pass directly to their intended beneficiaries without the need for probate.
5. Preparing a Will
While young adults may not have amassed significant wealth or assets, it’s still a good idea to create a simple will. A will allows young adults to specify how they want their belongings to be distributed upon their passing.
Becoming a legal adult at 18 comes with newfound rights and responsibilities. Estate planning is a crucial part of those responsibilities, as it allows young adults to make important decisions about their healthcare, finances, and assets while also ensuring their wishes are carried out in case of incapacity or death. By understanding these five legal aspects, young adults can take proactive steps to protect themselves and their loved ones through proper estate planning. Don’t wait—start your estate planning journey today to secure your future.
