Am I Too Young to Need an Estate Plan?
To get an estate plan or not to get an estate plan – that is the question. We all like to think that we are going to live forever – and when you are young and healthy, the last thing on your mind is that your life is anywhere near over.
That may be true – and you may have 50 more years ahead of you. Or the unthinkable could happen and you could die in your 20s or 30s. You never know what can happen, which is why setting up a Plan B on how your estate should be handled will protect you and your loved ones if the unthinkable happens.
At What Age Do I Need an Estate Plan?
Unlike a driver’s license or buying alcohol, there’s no age that says, “you should create an estate plan.” You can be 20, or you can be 63 – estate planning is done when you have “stuff”, and have loved ones to protect and whom you want to have your assets. An estate plan will let everyone know what your wishes are if you become ill or incapacitated, and put legal protections and documents in place to make matters easier for your family.
With that in mind, this will also depend on your assets. Let’s say that you are 22 but have nothing in your name yet, and no one that you can leave anything to either. In that case, you probably won’t need an estate plan. But that’s not likely. 22 years olds do have “stuff” they care about, and nearly everyone has family or loved ones they’d want to have their things.
If you are 22 and have things or savings in your name and someone that you wish to formally recognize as your heir, then it’s time for you to go forward with an estate plan. The moment you question whether you need an estate plan is the time to get an estate plan.
What Happens If You Die in Georgia and Don’t Have a Will?
If you die in Georgia and do not have a will, Georgia law rules that you died intestate and any assets that are remaining after your debts have been paid will be given to any living relatives you may have. If you don’t have any relatives, then all of your assets will go to the state of Georgia.
When you don’t have a will, there is no control over where your assets will go. It will follow the Georgia interstate laws. Say that you wanted to leave everything to one relative that you trusted, and nothing to the others. Without a will or a trust fund, the intestate laws will determine where everything goes, whether that’s wanted or not.
What Are Georgia’s Intestate Laws?
In Georgia, the law will determine which living relatives will inherit your assets if you die without a will. If you have a spouse or children, then the entire estate will be passed on to them.
At the same time, what your spouse receives will depend on whether you have any children or grandchildren. If it’s just you and your spouse, then they will likely receive the whole estate - after debts and taxes are paid.
However, if you have living descendants, they will receive at most 2/3 of the estate (shared among them), whereas the spouse gets at least 1/3 of it. If you have parents but no spouse or kids, then the parents will get everything.
Get an Estate Plan!
If you have “stuff”, it’s never too early to create an estate plan. If you only have a few things such as a car or a small savings account, you might only need a will and to update your beneficiaries. If you own a home, have a family and financial investments, you might want to look at trusts or guardianships for your children. The good news is that changes to your estate plan can be made in the future if your life situation changes - you get married or divorced, have a child.
Watch: 3 Estate Planning Documents You Should Have