It does not matter how young you are and how close you think you might be to death. If you are an adult, then you need to have financial plans for what happens after you pass away.
When you are young and healthy, it is not common to think a lot about your own death. You would be correct to assume that you will not die anytime soon. However, you would not be safe to do so.
Illnesses and accidents can strike anyone at any time. They do not spare the young and healthy. Because of this, you should plan for what happens after you pass away.
It does not have to be too difficult.
Recently MarketWatch offered some tips in "Prepare financially for your death, no matter how young you are," including:
- Get medical and financial powers of attorney. These documents will enable someone you designate to handle things and make important decisions, if you are incapacitated and unable to do so.
- Get a will. If your finances are not complicated, you might not need a complicated estate plan, but you should at least have a will.
- Get life insurance, if anyone is financially dependent on you so they will be taken care of, if you pass away.
- Put some money aside for a funeral, so your family does not have to pay for it.
- Keep your financial records organized so someone else can figure things out in an emergency. Let someone know where to find everything as well.
- As things change in your life and your finances get more complicated and bank accounts get larger, review and update your estate plan to reflect your current situation.