Surveys have found that about one in four American adults between the ages of 18 and 45 have estate plans in place. On the one hand, it is easy to understand why people in this age group feel as though they don’t have to be concerned about mortality. However, people pass away at all ages every day, and many individuals in this group are the parents of minor children.
Protect Your Family
It is definitely better to be safe than sorry when you have children depending on you for everything. Estate planning for a young family will include some basic components at minimum. First, you should draw up a will that designates a guardian that will care for your children if it ever becomes necessary.
Plus, there is the matter of financial support. Term life insurance is the widely embraced solution, and it is affordable for younger people. Since children cannot handle their own funds, you have to empower someone to manage insurance proceeds and other assets on their behalf if it becomes necessary.
You could establish a living trust with a trustee that would assume this role. There is also the testamentary trust, which is a trust that is contained within a will.
Advance Directives for Health Care
A well-constructed estate plan will cover the events that can take place toward the end of your life. This is very important for older people, but young people sometimes become unable to communicate due to devastating illnesses or accidents.
With a living will, you assert your choices regarding the use of life-support measures. A durable power of attorney should be added to name someone to make medical decisions on your behalf if it becomes necessary. These would be matters that are not related to life-support.
Since the Health Insurance Portability and Accountability Act (HIPAA) prohibits doctors from communicating medical information with anyone other than the patient, you should add a HIPAA release to give your health care representative access.
Young Adults
On the subject of advance directives, there is an important consideration that most people overlook. As soon as your child reaches the age of 18, the HIPAA regulations apply to them, and they apply to you as a parent. Medical professionals would not be able to share their information with you if they do not complete a HIPAA release form.
Schedule a Consultation Today!
Our doors are open if you are ready to work with a New Braunfels, TX estate planning lawyer to develop a plan that protects your family. You can send us a message to request a consultation appointment, and we can be reached by phone at (830) 554-4055.