No House, No Kids, No Millions? You Still Need An Estate Plan

August is National Make-A-Will Month, and many young and middle-aged adults think that they don’t own enough assets, don’t have enough money, or aren’t far enough along in their lives to justify having an estate plan. In fact, 40% of people don’t think they make enough to have an estate plan. Unfortunately, women are even more at risk of needing estate planning documents. According to Trust & Will, “Older generations, wealthier households, and men tend to be more prepared, while younger adults, lower-income individuals, and women lag behind.”

More than half of Americans still don’t have a will. LegalZoom confirmed this in their latest study. Unfortunately, this figure has remained nearly unchanged for years. Part of the problem is that people don’t realize how much they do have. Many have cars, electronics such as pricey computers, even company shares, 401(k)s, etc. Those are all worthy of protection.

More than that, a will is not just about asset protection. It’s about your most prized possessions, which often aren’t about material wealth but about emotional importance. Think of your grandmother’s ring, your box of letters, cards, and notes you’ve collected over the years, the sweater someone knitted for you, and all the other cherished belongings that only have meaning to you and those you love.

An estate plan is also about assigning someone to carry out your wishes. It’s about specifically choosing a guardian for your children, or even ensuring they’re the ones who inherit your assets should your partner remarry. Most importantly, it’s about helping your loved ones in an already difficult time. When someone passes away, those left behind grieve, and while at emotional rock bottom, they’re expected to make really tough, costly logistical decisions. That’s why having your wishes in writing is like still being there for your family even after you are no longer there.

No one likes to think of the inevitable. Yet, doing it now can give you and your loved ones clarity, comfort, and that invaluable feeling of “Phew, that’s all set.”

When people think “estate plan,” they often think of a will, maybe a trust. In reality, there are many more documents for estate planning. Those include powers of attorney (POA), healthcare directives, even pet directives, and funeral directives.

All of that can sound overwhelming at first, which is why it’s important to remind yourself you don’t have to do it all at once. You can start with one document and build your plan up from there. Let’s break each document down.

Consider wills and trusts as the foundations of any solid estate plan. Although they are similar documents in the sense that they allow you to clearly outline your wishes from guardianship to assets, family heirlooms to charitable donations, they vary in essential ways.

A will lays out what should happen to your property after your death and can name guardians for minor children and an executor to carry out your wishes. However, assets passing through a will generally go through probate—the court-supervised process of settling an estate—which can sometimes be a lengthy, public, and costly process.

On the other hand, a revocable living trust can hold assets during your lifetime and direct how they’re managed and distributed after your death. Assets properly transferred into the trust can generally avoid probate, offering more privacy and potentially making the transfer process easier for your loved ones.

It’s important to note that as your life changes, your estate planning should too. Life evolves all the time: people have babies, buy cars, move between states, sell businesses. That’s why experts recommend updating your plan every three to five years or after any milestone like marriage, children, retirement, and more. 

Estate planning isn’t only about what happens after you die. Some of its most important documents protect you while you’re alive.

A financial power of attorney lets someone you trust handle certain financial or legal matters for you if needed, while a healthcare directive allows you to document your medical wishes and, depending on the document and state, name someone to make healthcare decisions if you can’t make them yourself.

Then there are the wishes that may not determine who gets your bank account but can still matter enormously to the people you leave behind. Pet directives can document who should care for your pets and how, while funeral directives can spell out preferences for your funeral, burial or cremation, ceremony, and other final wishes.

Think of your estate plan less as a single document and more as a complete guide you leave behind for the people you love and trust.  

Have you ever wondered what happens to your young adult children once they come of age? Have you ever playfully argued with your adult siblings about who gets the lake house, dad’s vintage car, or grandma’s ring?

Estate planning is not just about you; it’s also about ensuring your entire family’s legacy and helping your loved ones make sure they have solid plans in place. For those simultaneously thinking about aging parents and newly adult children, that means looking in both directions.

When someone dies without a valid will, they die “intestate.” Instead of their wishes determining who inherits property governed by the probate estate, state intestacy laws determine who receives it. Intestacy laws vary between states. Regardless of how you cut it, the state doesn’t know what you want or what your parents want, so dying without a plan in place means the state determines what happens, not you or your family. 

If you have children over 18, you want to consider helping them create two important documents. You’ve done everything for them since birth, but once they become a legal adult in the eyes of the law, you may not have the same rights. A healthcare proxy or similar healthcare document can authorize someone to make medical decisions when necessary, while a power of attorney can authorize a trusted person to handle specified financial or legal matters. It’s not about not letting them grow up; it’s about still being able to step in if they need you, because even if they’re out of the house, they’ll always be your babies.

When it comes to your parents, it’s important to have the estate planning conversation. It may be sensitive at first, but it’s all in the framing. So ask them what they want. Tell them your family wants to know how to honor their wishes. Reassure them that you are here to help. Tone and words can go a long way toward making the conversation feel like it’s less about death and more about care.

In today’s modern world, long gone are the days when creating an estate plan automatically meant starting with an appointment in a lawyer’s office. Estate planning is now easier than ever, as you can create your documents online.

The right option depends on your situation. If your estate is relatively straightforward, an online estate planning service may be enough to help you create basic documents. Look for services that clearly explain state-specific requirements, what documents are included, how they should be signed and witnessed, and how you can update them later. Independent guides, such as the National Council on Aging’s roundup of the best online will makers, can be a useful starting point.

If you have a blended family, significant assets, a business, property in multiple states, complicated family dynamics, a beneficiary with special needs, or simply aren’t sure what documents you need, working with an estate planning attorney may make more sense.

Whichever route you take, the important thing is to start. Remember that you don’t need a house, children, or millions of dollars to begin. You simply need people you love, belongings you care about, and wishes worth protecting.

An estate plan is ultimately less about what you leave behind and more about who you leave behind. It’s like a roadmap to your wishes, so they don’t have to guess and can focus on being together. The faster you get your estate plan sorted, the faster you can go back to living your life, knowing the people and things that matter to you are protected.