What do you know about estate planning in your 20s?

On Behalf of | Jan 2, 2021 | Elder Law & Estate Planning

You graduated from college in Minnesota recently, and you may worry more about starting your career than estate planning. Should you tend to both matters equally? 

U.S. News & World Report explains why recent college graduates should mold their estate plan now. Understand why you do not have to wait until you are older or rich to plan your estate. 

Choose a decision-maker

Your 20s are an ideal time to create and designate a health care proxy and durable power of attorney. That way, if you become incapacitated, you have someone speaking with your voice regarding your healthcare decisions. With a durable power of attorney, someone makes financial decisions and pays your bills for you. Even if you are not incapacitated, creating a durable power of attorney comes in handy if you must make financial decisions while out of the country, such as while studying abroad. 

Select your beneficiaries

Once you get your first job after college, your position may come with life insurance and a retirement plan. HR may ask for your beneficiaries, who receive your death benefits or assets when you die. If you do not choose a beneficiary, the state may choose one for you, such as your next of kin. You may not like the person the state chooses, so decide yourself. 

Also, create a will that describes who inherits your assets. Even if you have little to no assets now, you may have a significant other whom you want to act as your beneficiary. Do not forget to account for student loan debt when drafting your will.