Residents of Arizona in their 20s and 30s might believe that estate planning is something they do not have to worry about for quite some time. The truth of the matter is that estate planning can be important for young people even if they possess modest assets.
Proper estate planning involves a lot more than deciding who will inherit the assets of a deceased person. Planning an estate also provides individuals with the opportunity to look out for their best interests and the interests of the people they care the most about.
The lives of young people often include momentous events like graduating from college, purchasing a home, starting a business and getting married. These milestones in life also become great reasons for younger people to give thought to estate planning.
To ensure that their loved ones are taken care of in the event they can no longer be with them, individuals will want to have a few documents in place. The first of these documents is a durable power of attorney. This document allows a friend or family member trusted by the planner to act on their behalf if they find themselves unable to do so.
A living will allows the planner to choose what medical treatment he or she will receive if incapacitated. These documents usually apply to terminal illnesses. A health care proxy is similar in its action to a living will but allows another person to choose medical treatment on behalf of the incapacitated person.
Wills and revocable trusts deal with the division of assets. A will provides specific instruction about asset division and names an executor to carry out these instructions. A revocable trust serves the same purpose but allows the grantor to change directions as he or she sees fit and does not utilize an executor.
Estate planning consists of a complex process that includes nuances not commonly known by the average person. Individuals with questions regarding the planning of their estate may find it helpful to speak with an estate law attorney.