A significant portion of young adults are delaying what are considered traditional life milestones: marriage, having kids, buying a home, etc. Many factors contribute to this problem, particularly an unstable economy, lower salary increases and increasing living costs (especially if you live in a big city). All which force Millennials to focus on living in the present, rather than the future.
There is still a case to be made for planning for the future — and doing so now.
The reality is, even if you’ve decided to delay buying a home, get married or have kids, you still need to plan for your future. That does not simply mean just opening and contributing to an RRSP. Estate planning is not just for old people.
Estate planning is necessary for people at any age (especially those over 18) but it is especially beneficial to people who eventually climb the career (or corporate) ladder and start a family.
Name a Decision-Maker
Most people consider estate planning as simple as writing a Last Will. While the process of creating a Will is important, one of your first steps actually needs to be establishing a Power of Attorney or a Power of Attorney for healthcare (otherwise known as a Living Will). You may never know, down the road, what health problems you may run across. This makes it even more critical for young people to ensure they have someone who is legally able to make financial and healthcare decisions on their behalf, should the need ever arise. Once you hit 18, you are legally considered an adult who can make decisions on his/her own behalf. A Power of Attorney or a Living Will allows you the opportunity to legally appoint someone else to make those financial or healthcare decisions on your behalf.
Take Care of Those You Love the Most
Nobody is supposed to die before their parents, but sadly, it does happen.
You need to think about your beneficiaries and Last Will. Once you get a job, you may have the opportunity to contribute to an employer-sponsored retirement plan and life insurance coverage. You need to make sure that you identify a beneficiary for each policy. In the event of a premature passing, your policies ensure that your beneficiaries receive your assets.
Without a Last Will, the sharing of your assets will be decided by the court (as small as they may be), and you risk leaving your loved ones empty-handed.
You Own More than You Think
You may believe that your assets are not worth much (especially in a formal legal document like a will), but you actually might be surprised by the value of your assets, such as:
- an RRSP
- a life insurance policy
- a vehicle
Probate Can Take Forever
A Last Will can save your loved ones a lot of time. Your estate can sail through the probate process. Should the unexpected happen, your Will ensures that the people who are responsible for settling your estate can do so as seamlessly and as painlessly as possible. Without a Will, it may take a year or longer to distribute your assets (the courts may have to jump in make decisions on this).
You may be under the impression that these kinds of important life decisions are reserved for people much older than you. Making these decisions sooner rather than later lays the foundation for more complex estate planning which comes later on in life, such as retirement planning. It is essential that you have a solid foundation to eliminate any hassle and heartache if the unexpected were ever to happen.
FormalWill.ca is a leader in online legal wills. Our system has been developed in close consultation with Canadian lawyers to ensure the utmost accuracy. You can create your free account in seconds and pay through our secure payment system. We have established a user-friendly online service that creates your legal documents instantly and is designed to save you money on legal fees while guaranteeing your satisfaction with your estate planning needs.
Are you ready to start your estate planning process instantly? Click here to learn more.