By the Wills & Estates Team at Simmonds Law
When you’re in your 20s or 30s, the idea of drafting a will may seem unnecessary – after all, you’re young, healthy, and focused on building your career or growing your family. But the truth is, life is unpredictable, and creating an estate plan early in life can protect both your assets and your loved ones. Estate planning isn’t just for the elderly or those with large estates – everyone can benefit from having a clear plan in place, regardless of their age or the size of their wealth.
At Simmonds Law, we believe it’s crucial to start estate planning as soon as possible. Having a will ensures that your wishes are respected and your loved ones are taken care of, especially in the event of an unexpected illness, accident, or death. In this post, we’ll explore why it’s important to have a will and estate plan in your 20s or 30s and discuss the key elements that should be included.
Why You Should Draft a Will & Estate Plan Early
Unforeseen Circumstances Can Happen at Any Time
No one can predict the future. Life can change in an instant due to an accident, illness, or other unforeseen events. By planning early, you ensure that you are prepared for the unexpected. Creating a will and estate plan in your 20s or 30s gives you peace of mind knowing that if something were to happen to you, your wishes will be honored and your family won’t face confusion or disputes about your assets.
Ensure Your Assets Are Distributed According to Your Wishes
Even if you’re just starting out and don’t have significant assets, you likely own something of value – whether it’s a car, personal belongings, or savings. Without a will, your assets may be distributed according to provincial or territorial laws, which might not reflect your desires. By having a will, you can clearly define who gets what and ensure that your estate is distributed fairly.
Protect Your Family and Loved Ones
If you have children or dependents, creating a will is especially important. If something were to happen to you unexpectedly, a guardian for your children or dependents will need to be appointed. Without a will, the court may decide who takes care of your children, which could lead to family disputes or a decision you would not have made. Having a will ensures your children are placed in the hands of a trusted person and that their financial needs are addressed.
Avoid Family Disputes
When a loved one passes without a will, it can lead to conflict among surviving family members over the distribution of assets. These disputes can be emotionally draining and can cause lasting family rifts. A will provides clear instructions, reducing the likelihood of disagreements among your loved ones.
Make Your Healthcare Decisions Known
Estate planning includes more than just a will. It’s also important to have healthcare directives in place, such as a Power of Attorney for health decisions. This legal document allows you to designate someone to make medical decisions on your behalf in the event that you are incapacitated or unable to communicate your wishes. It also enables you to outline your preferences for life-sustaining treatment or organ donation.
Tax Benefits and Financial Protection
For those with assets, estate planning can help mitigate taxes and ensure your estate is passed on in a tax-efficient manner. Having a plan in place for tax-efficient wealth transfer can help reduce the financial burden on your heirs, especially if you have investments, property, or other valuable assets.
What to Include in Your Will & Estate Plan
Now that we’ve discussed why it’s important to create a will and estate plan early, let’s take a look at what should be included in your will to ensure it’s comprehensive and meets your needs.
- Personal Information and Executor Appointment
The first step is to clearly identify yourself in the will and outline who will be responsible for carrying out your wishes. This person is known as the executor. Your executor will manage your estate, ensure that your debts are paid, and distribute your assets according to your instructions. It’s essential to choose someone who is responsible, organized, and trustworthy.
- Beneficiaries
Your will should list who will inherit your assets after you pass away. This can include family members, friends, or even charitable organizations. Whether you’re leaving your bank account, real estate, or personal property, your will should clearly specify who gets what. Make sure to review your beneficiary designations periodically, especially if your circumstances change.
- Guardian for Minor Children
If you have children under the age of 18, one of the most important decisions you’ll make in your will is appointing a guardian. A guardian is the person who will be responsible for raising your children if you’re no longer able to. Choose someone who shares your values and whom you trust to care for your children in your absence.
- Healthcare Directives and Powers of Attorney
While your will outlines what happens after you die, healthcare directives address your wishes in the event that you become incapacitated. A Power of Attorney allows you to designate someone to make financial decisions on your behalf if you’re unable to do so. Similarly, a Healthcare Power of Attorney allows you to appoint someone to make medical decisions for you. These documents give you the opportunity to specify what kinds of treatment you want or don’t want in certain situations.
- Debts and Expenses
It’s important to outline any debts you may have in your estate plan, such as credit card balances, loans, or mortgages. By specifying how these debts should be handled, you can help your executor manage your financial responsibilities after your death. Addressing debts in your will also ensures that your loved ones are not left with unexpected financial burdens.
- Special Requests and Personal Belongings
In addition to larger assets like real estate or investments, consider what will happen to your personal belongings – such as heirlooms, jewelry, or family memorabilia. If there are specific items you want to go to particular individuals, make sure to detail these wishes in your will.
- Business Ownership or Shares
If you own a business, it’s crucial to have provisions in your will for how your business interests will be handled. This might include transferring ownership to a spouse, child, or business partner, or outlining how your business should be sold or liquidated. A buy-sell agreement or shareholder agreement can help facilitate the transition of business ownership.
Conclusion: Estate Planning Is for Everyone, at Any Age
Creating a will and estate plan in your 20s or 30s might not feel like a priority, but it’s one of the most important decisions you can make. The earlier you start, the more control you have over how your assets are distributed, how your loved ones are cared for, and how your medical decisions are handled. Estate planning ensures that your wishes are followed and helps minimize confusion, disputes, and financial burdens for those you leave behind.
At Simmonds Law, we help individuals of all ages draft comprehensive wills and estate plans that reflect their unique needs and goals. Don’t wait until it’s too late – start planning today.
