Young people from all over the world flock to California to try and launch successful technology companies. For the lucky few who do find success, the sudden and potentially enormous increase in wealth can be very exciting. However, because many of these entrepreneurs are young, this influx of money can also be very overwhelming.
Thanks to the examples set by older, wiser industry leaders like Bill Gates and even Mark Zuckerberg, many young people are taking the time to plan ahead. This includes developing charitable giving plans and even estate plans. In fact, reports indicate that there has been a dramatic increase in the number of young people seeking help in order to understand how to plan for the future.
It is not uncommon for young people to avoid the topic of estate planning. This can be especially true for the people who are not married and do not have children. But as younger people are finding great success in starting businesses, they are also learning that even without a spouse or child, they have a responsibility to make plans for the future.
Without a will in place and the designation of an estate executor, a person’s money, investments and properties can be distributed by a court-appointed executor who may have no understanding of what a person’s intentions were. This can be a devastating blow to the friends, family members or charitable organizations who may have been the intended recipients, especially when there are significant assets at stake.
Additionally, it can be crucial for young, unmarried people to have a healthcare directive and power of attorney established so that they can be sure their best interests, both medically and legally, can be protected.
The fact that more young people are taking control of their future by putting together an estate plan is certainly promising. However, there are many different options and obstacles that young, unmarried and successful may need to consider that other people may not. That is why it can be crucial to get support to make an effective estate plan that fits an individual’s financial goals as well as their current and future lifestyle plans. Working through this complicated process with an estate planning attorney can be a good way to pursue a successful resolution.
Source: Reuters, “Estate planning for the young, rich and childless,” Beth Pinsker, June 2, 2014