Moving out is a significant milestone in adulthood. For the first time, you might need to find housing, get insurance, sign up for utilities, and manage your finances independently. This can feel overwhelming as you adapt to a new environment and possibly a new career.
With greater independence comes more responsibility. Your family might offer advice on navigating adulthood, but they may not mention the importance of having your legal affairs in order. This includes creating an up-to-date estate plan with the help of an estate planning attorney in Reno.
Compared to previous generations, today's young adults are less likely to have reached traditional milestones like marriage, financial independence, and living apart from their parents. In 1980, 84% of 25-year-olds lived independently, compared to just 68% in 2021, according to Pew Research. Recent Census data shows that the percentage of 25-to-34-year-olds living with their parents has increased significantly since 1960.
Despite high inflation, rising interest rates, and a challenging housing market, there has been a post-pandemic trend toward independent living among young adults. While the percentage of 25-to-34-year-olds living with parents remains high by historical standards, it dropped to 19% in 2022, the lowest level in a decade.
As a young adult, you might feel invincible and not see the immediate need for an estate plan. However, creating an estate plan with an estate planning attorney in Reno is crucial. Many young people haven't heard of estate planning or only have a vague understanding of it, as it's often a topic parents don't discuss.
An estate plan includes legal tools to manage your assets and address your healthcare preferences if you become incapacitated or pass away. There's a 25% chance that someone in their 20s today will experience a long-term disability before retirement. Despite this, only 24% of 18-to-34-year-olds have a will.
Even if you don't have significant assets, having a will is important to manage your possessions and name a guardian for minor children or pets. A will is just one aspect of an estate plan, which also allows you to designate decision-makers if you're incapacitated.
Financial Power of Attorney: Authorizes someone to handle your finances, such as paying bills, managing accounts, and filing taxes. Medical Power of Attorney: Authorizes someone to make healthcare decisions for you. Living Will: Documents your preferences for end-of-life care. Living Trust: Can complement a financial power of attorney and offer additional benefits.
Without these tools, a court may appoint someone to make decisions for you, which could lead to disputes among family members or someone you wouldn't have chosen gaining control.
Your parents may be natural choices to serve as your agents, but consider their availability and proximity. If they are far away or frequently travel, you might choose someone else. Trusted adults, like friends or professionals, can also serve as agents. Ensure they understand their responsibilities and are willing to serve. It's also wise to designate backup agents.
Moving away from home can be both exciting and nerve-wracking. While you're focusing on new connections and routines, don't forget about your estate plan. Being an adult means facing uncomfortable realities and planning for potential challenges.
Take control of your future by scheduling a meeting with an estate planning attorney in Reno. Contact us to ensure your legal affairs are in order.
