Think You’re Too Young for Estate Planning? Think Again.

Death feels a long way off when you’re young and healthy. As a result, many people assume estate planning isn’t necessary until you’re older. But that mentality is similar to presuming you don’t need flood insurance because your island paradise hasn’t been hit by a hurricane. The fact is that estate planning documents cover a lot more than who should get that motorcycle after you die.

In Michigan, estate planning refers to organizing the documents and legal decisions necessary to govern a person’s end-of-life affairs. It also addresses situations when a person is incapacitated and can no longer speak for themself.

Here’s what you need to know about estate planning in Michigan, why it’s so important (even when you’re young), and what the Kreis Enderle team can do to help get you started.

Estate Planning 101 for Young People

A recent college graduate might not have many possessions, but contrary to popular belief, estate plans aren’t just for retirees. They’re also not just about possessions. Or death, for that matter.

In Michigan, your estate plan outlines what should happen in the event of either your death or disability. In other words, any situation when you can’t speak for yourself. And while you might not care too much about what happens to that comic book collection, you probably have strong opinions about who gets to make life-and-death decisions for you.

In addition to asset distribution and end-of-life affairs, estate plans outline who can make medical decisions on your behalf, including your preferences on life-saving measures, organ donation, and resuscitation orders. They also cover taxes, dependent care, business succession, and authority to access passwords and other online digital tools.

Figuring out where to start with all these documents can be overwhelming, but don’t worry. We’re here to help.

The Top Three Documents Every Estate Plan Needs

Estate planning gets more complicated the older you get. However, for those just starting out, experts agree these three documents are the most important:

1. Advanced Healthcare Directive—outlines who can make medical decisions on your behalf (usually in conjunction with your specified medical instructions).
2. Power of Attorney—grants someone else the authority to make financial decisions for you if you’re ever incapacitated (also typically within the limits you provide).
3. Will—clarifies how you want your assets distributed (and to whom) after you die. This does not have to be complex and is usually quite simple if you’re young.

These three items act as your voice when you can’t speak for yourself and make your wishes legally binding if you’re ever incapacitated by illness, injury, or death. Even if you have only a couch, a dog, and a few T-shirts, itemizing these “trivial” things now will also help you develop good habits as your assets continue to grow.

Make Your Estate Plan a Reflection of You

An estate plan is more than just a checklist of legal decisions. This plan is a literal representation of you, so you can draft it in a way that embodies your unique personality and needs.

To that end, consider these five under-appreciated things an estate plan can cover:

• Pet care guidelines. Some of the most important figures in our lives often aren’t even human. Use your estate plan to outline pet care instructions for your beloved companion and who should care for them if you cannot.
• Give to charity. Whether donating money to a scholarship, leaving possessions to a good cause, or supporting scientific research through organ donation, champion your passions by making a charitable bequest in your estate plan.
• Projects and intellectual property. Don’t neglect an unfinished project. Protect your creative vision by including someone who understands it in your estate plan.
• Leave a digital message. A message from the past doesn’t have to come in an actual bottle. Use your estate plan to leave a digital message to loved ones after you pass.
• Quirky bequests. Heirlooms and collections need not have monetary value to be meaningful. Leave treasured possessions in the hands of those who will value them most after you’re gone.

Estate Planning in a Digital World

Your estate plan can also address your digital assets. Nowadays, so much of our lives are stored in clouds and digital databases. From photos, videos, and documents to social media content, music libraries, and even financial information, digital assets make up a huge part of our daily existence. However, accessing this private information requires passwords, usernames, and answers to secret questions–requirements that don’t change just because you die.

Luckily, Michigan estate law has accounted for these digital assets. Under the Fiduciary Access to Digital Assets Act (FADAA), a grantor can specifically assign a personal representative (or “digital executor”) control over their online accounts. This gives that person the legal authority to access and manage things like email, social media accounts, digital files, and even cryptocurrency when you cannot.

FADAA rules can also be used to dictate what you want to happen to specific accounts. So, whether that means deleting Facebook, ongoing Instagram management, or something else entirely, you can rest easy knowing that your online presence will be maintained precisely according to your wishes.

You’re Never Too Young To Start Estate Planning

At eighteen, you’re a legal adult. Your parents no longer have a say over important decisions regarding health care directives and legal permissions. And if you have preferences about what should happen in a worst-case scenario or who you want your possessions to go to, then it’s essential to get them in writing today.

If this is your first time considering estate planning, we want to help. Contact Kreis Enderle today for a free consultation, and let one of our compassionate, experienced attorneys help document your wishes precisely how you intend.