Estate plans are not just for old, rich people, says Ric Edelman, the founder of Edelman Financial Group in Fairfax, Va.
Instead, everyone 18 years and older should have one.
“It’s not about money; it is about the administrative aspects of a life,” Edelman says. That includes the administration of young people’s personal items—things they are likely to have strong sentimental attachments to.
It also means administering young people’s virtual lives, he says.
“Millennials and Generation X lead their lives online.”
That means a parent or another person needs to know how to preserve the pictures that are posted on social media accounts and any writing the person may have done. For that, estate planners need to know not only passwords but the answers to security questions.
Social media accounts can be saved by arranging ahead of time, Edelman says.
“If the young adult feels uncomfortable revealing information to a parent, the information can be given to the attorney who does the estate planning with the condition it be opened upon death,” he adds.
“Even at 18, you have charities you might want your assets to go to or heirlooms you have received that you want to go to certain family members,” he says.
A medical directive and medical power of attorney are particularly important for a young person. Through these legal vehicles, a young person can explain whether he or she wants to be kept on life support and what arrangements should be made for internment.