Part 2: Your estate plan has seasons: what to do in your 20s and beyond
When I tell people I’m an estate planning attorney, the response is often a polite laugh and, "Oh, I'm not there yet." Usually that means they are under 50, they don’t own much or they have not had children. But estate planning is not a finish-line task. It is a set of decisions that change shape with each season of life.
Here is how I walk clients through those seasons.
Your 20s: Plan for incapacity first
Picture a 22-year-old college graduate. She is single, has no children, and is starting her first job. Does she need an estate plan? Yes, and the most important pieces are not about death.
The day you turn 18, your parents generally lose the legal right to make medical decisions for you or see your records. If you are hurt in a car accident at 18, the people who love you most may be locked out. A basic plan fixes that.
A financial power of attorney naming someone to pay your bills if you cannot.
A health care power of attorney or advance directive naming who speaks for you medically.
A HIPAA authorization so that person can obtain your records.
A beneficiary review of your retirement account and any insurance through your job.
Instructions for your digital accounts, because your phone, email, cloud account, and social media hold more of your life than you think.
A will, which can be simple, names who receives your property and who handles your final affairs.
Your 30s and 40s: Protect the people who depend on you
The stakes rise when other people depend on you. A mother in her 30s has a longer list, and every item on it matters.
Name guardians for your minor children and a backup. Without a nomination, a court decides.
Establish both a will and trust that says who receives what and who is in charge. The trust many times allows your family to avoid probate and ensure their privacy as assets transfer from your estate to your loved ones.
Coordinate life insurance with your family budget. A good starting point is enough to cover the mortgage plus two to five years of property taxes, insurance, and normally living expenses (utilities and groceries) so your family has room to breathe.
Choose backup caregivers for the weeks when you cannot be there.
Update beneficiary designations after every marriage, divorce, birth, or death. These forms usually override your will.
Plan for either parent becoming incapacitated. If you are a single parent, your incapacity plan is your child's safety net.
If you own a business, add a succession plan. Name a successor or line up a potential buyer now, so the business you built does not collapse when you are unavailable.
Your 50s: The sandwich decade
When my mother had a brain hemorrhage right after she retired, my daughter was 3. During her recovery, I was frequently overwhelmed by the emotional strain of caring for two of my favorite people in the world. Thankfully, my mother was and is very organized, so I knew where her important documents were. This wouldn’t have been a good time to try to figure it out, as all these things were happening.
My experience is not unique. The sandwich decade is when many of us are caught in the middle: coordinating our own retirement accounts, helping aging parents, and still supporting children. It’s a good time to review your insurance, look closely at long-term care, and organize retirement accounts and beneficiaries so they work together.
You may be the family member being handed a stack of your mother's paperwork at the bank. Having your own documents finished before that happens makes you a stronger advocate for her, and a better example for your children.
Your 60s and beyond: Make it easier for the next generation
At this stage, the planning gets both more practical and more tender. You are thinking about retirement income, the possibility of incapacity, charitable giving and the legacy you want to leave, which includes your values and not only your property.
One of the greatest gifts you can give is making administration easier.
That means:
Keep a current list of accounts, passwords, and contacts.
Tell your executor, trustee, and agents where the documents are.
Review everything after major life changes and at least every few years.
Decide, while you can, what you want your faith, family, or giving to look like after you are gone.
My grandmother didn’t get to make these choices. Her stroke came first, and the court made decisions on her behalf.
Different families might need different plans
The stages above are a map, not a mandate. Blended families may need additional steps to make sure a second spouse and the children from a first marriage are each provided for. Single parents need a clearly named guardian and a backup. Homeowners and investors need to think about how property passes, and entrepreneurs need that succession plan.
Whatever your season, start with the question: "Who would be in charge if I could not speak for myself tomorrow?" Then write down the answer, put it in a legal document prepared for your state and share it with the people who will need it.
A plan you can update is better than a perfect plan you never make. Start where you are with what you have.
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