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Ready to Move Away from Home? Key Steps for Young Adults

Posted by Gregory Robinson | Jul 09, 2024 | 0 Comments

Moving away from home marks a significant milestone in adulthood. It's an exciting but overwhelming time, with responsibilities like securing housing, buying insurance, signing up for utilities, and managing finances. Amidst these changes, it's crucial to have your legal affairs in order, including an up-to-date estate plan.

Young Adults and Independence: A Changing Landscape

Today's young adults face unique challenges. According to Pew Research, only 68% of 25-year-olds were living outside their parents' home in 2021, compared to 84% in 1980. Census data also shows an increase in 25-to-34-year-olds living with their parents, from 11% of men and 7% of women in 1960 to 19% of men and 12% of women in 2022.

Despite these challenges, including the COVID-19 recession and a tough housing market, there is a trend toward independent living. In 2022, the share of 25-to-34-year-olds living with parents dropped to the lowest level in a decade.

The Importance of Estate Planning for Young Adults

Many young adults feel invincible and may not prioritize estate planning. However, an estate plan is essential for everyone, regardless of age or asset level. It includes tools to manage your assets and healthcare preferences if you become incapacitated or pass away.

Why You Need a Will

A will is a fundamental part of an estate plan. It ensures your assets are distributed according to your wishes and appoints a guardian for minor children or pets. Surprisingly, only 24% of 18-to-34-year-olds have a will, the lowest of any age group. In comparison, 55% of adults aged 55 and older have a will.

Decision-Making Authority in an Estate Plan

An estate plan isn't just about what happens after you die. It also allows you to designate decision-makers if you're incapacitated:

  • Financial Power of Attorney: Authorizes an agent to manage your finances, including paying bills, managing accounts, filing taxes, and more.
  • Medical Power of Attorney: Authorizes an agent to make healthcare decisions on your behalf.

Without these documents, the court will appoint someone to make these decisions, potentially someone you wouldn't choose.

Choosing Your Trusted Decision-Makers

When selecting agents for your estate plan, consider their availability and willingness to serve. Family members, friends, or professionals like accountants can serve as agents. It's essential to choose backup agents in case your first choice is unavailable.

Don't Forget Your Estate Plan as You Move Out

Moving away from home is both exciting and challenging. As you embrace this new chapter, ensure you have an estate plan in place. This proactive step provides peace of mind and protects your interests, no matter what life throws at you.

Take control of your future by scheduling a meeting with an estate planning attorney today. Establishing this relationship early can set you on a path to greater financial and personal responsibility.

About the Author

Gregory Robinson

Attorney Gregory Robinson is a native of Alabama. He earned his Juris Doctor (J.D.) degree from Mitchell Hamline School of Law and holds a Master of Business Administration (MBA) degree from Rice University. Prior to practicing law, he worked as a strategy consultant in the financial industry...

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