Clients often ask if 30 or 40 is too young to plan their estates or if they have enough money to worry about where it goes.
The answer is that it is never too early, in part because estate planning is not limited to deciding who will receive your money and other possessions. State laws will take care of that even without an estate plan, directing your estate to your nearest relatives.
Everyone should name an agent to represent them on health care and financial matters in case they become incapacitated. This is usually done through a health care proxy and durable power of attorney. Through your will or a trust they can designate who will manage your estate and distributions if you pass away.
If you have children, through your estate plan you can designate a guardian for them and set up a trust to manage whatever funds you leave them, including life insurance proceeds.
No matter how old you are or how much money you have, the most important reason to plan your estate is to prepare for the unexpected. We cannot foretell what will happen to us on any given day. Life is unpredictable and planning your estate will help your loved ones if anything happens to you.