Question: I’m a healthy thirty-something. When should I consider drawing up a will and what other legal documents should I prepare?
Answer: Depends on your circumstances. If you individually own assets that don’t have designated beneficiaries, such as real estate as opposed to a life insurance policy, and/or you have children, you should have a will.
“You should always draw up a will if you’re concerned about how your assets will be passed,” said Mark Stinson, director of planning for financial advisory firm Baltimore-Washington Financial Advisors Inc. “Otherwise, your assets will pass according to your state’s laws.”
If you have children who are under 18, you should have a will that stipulates who will raise them if both parents can’t. Make sure to ask the potential guardian if he or she accepts the responsibility before putting it into your will. Also, name an alternate guardian in case your first choice isn’t able to care for your children if the time comes.
If you’re leaving property or assets to your children, then you should also name a custodian or trustee to manage the inheritance until the child turns 18. It’s best that the guardian and custodian are different people, so there won’t be any conflicts of interest.
To make sure your intentions are carried out, name an executor of your will. This person should be someone you trust and who would settle your estate how you want. For most young people, this person is a friend or family member, Stinson said.
In addition to a will, certified financial planner Bedda D’Angelo in Durham, N.C., recommends anyone 18 years old and older to prepare a durable power of attorney, a health care proxy and a living will.
Associated Press
Talk to us
> Give us your news tips.
> Send us a letter to the editor.
> More Herald contact information.
