It is a common misconception that only the elderly need estate planning. Even young people need to plan their estates as early as possible. Whether single, married or simply cohabiting with someone, an estate plan ensures you are prepared for any eventualities. Here are a few reasons why early estate planning can benefit you:
Ensure your financial well-being
Even if you do not have many assets now, you will eventually grow your assets as you grow older and go further in your career. Part of sound financial planning is saving and planning for the future. Early estate planning can help you minimize your estate taxes and other expenses, giving you more wealth for your long-term care and bequeath more to your heirs.
Avoid lacking money for long-term care
Early estate planning is advisable because it allows you to include Medicaid in your long-term care plans. Even assuming you are wealthy enough not to need Medicaid, fortunes can change, and you may find yourself having depleted assets and suddenly needing Medicaid. Medicaid has strict income and asset limits, so if you are in that middle range where you are not wealthy enough not to need it but also not poor enough to qualify, early estate planning can help ensure you are eligible for Medicaid.
Have peace of mind
You have seen it in movies and TV shows: someone without a healthcare directive or living will subject their loved ones to anguish and bickering, unable to decide what to do if the person falls into a coma or vegetative state. Do not allow your loved ones to go through this pain. Plan now: Appoint a healthcare proxy and draft a living will.