When you say estate planning, people often think of retirement, wealth transfer and end-of-life decisions. However, estate planning is just as important for investors in their 20s, 30s and 40s, says a recent article, “Why estate planning is still impactful for young investors” from The Derrick. Life is unpredictable, and accidents, illnesses, or big financial changes can happen to anyone at any time. Without a plan, assets, healthcare decisions and guardianship for young children can be left to state laws or a court decision.
Estate planning is a strategy to protect your loved ones, your financial future and your legacy. It starts with the fundamentals:
Wills and trusts. A will outlines how assets are to be distributed after death and names legal guardians for minor children. Without a will, state laws determine who inherits property, which may not align with your wishes. You may not own a home, but if you have a bank account, retirement savings, or personal belongings, chances are you have preferences about who should receive them upon your death. Trusts are tools for holding and managing assets for beneficiaries. They are used to reduce taxes, avoid the lengthy delays and costs of probate and can set conditions for inheritances.
For most people, both a will and a trust are needed to protect assets upon death.
Power of attorney and healthcare directives. These documents are used to protect you while you are living. The POA names someone to make financial decisions if you are incapacitated. This may include investments, paying bills and legal matters. The healthcare directives allow someone else to make medical decisions on your behalf. Incapacity is not pleasant to consider. However, having these documents in place means your spouse or family can act quickly on your behalf, without having to go to court to gain control over legal, financial, or healthcare matters.
An estate plan is also needed to protect the family’s security and transfer of wealth. Creating a will with an experienced estate planning attorney fosters clarification of wishes as you discuss what you want to happen upon your death. An estate plan can help avoid family disputes and give you peace of mind.
Even smart people make mistakes when it comes to estate planning. The biggest one is procrastinating and not getting it done. Another is waiting too long to update documents, which should be reviewed and updated, if necessary, every three to five years or as life circumstances warrant. Another is not communicating with heirs. It’s best to have even the most difficult conversations when you are still able to talk through your wishes and thoughts. Otherwise, your family may be left with a lifetime of questioning your decisions.
It’s never too early to start creating an estate plan. Having your legal and financial affairs in order, working with an estate planning attorney, CPA and financial advisor, ensures that your wishes are respected and loved ones are protected, no matter what the future brings.
If you’re ready to start planning your future, book a consultation with Hudson Legacy Law today.
Reference: The Derrick (March 13, 2026) “Why estate planning is still impactful for young investors”