Hey, thanks for the reminder! I have a folder on my computer called “It’s Time to Adult” where I have drafted a POA, Will, Pour-Over Trust, and Living Will, but haven’t actually executed everything in it yet. So I need to get on that.
Me: 27F Attorney.
Status: Single.
Net Worth: -3k.
• Have a POA drafted but not executed.
• Have a will drafted but not executed.
• Have a pour over trust drafted but not executed.
• Have a living will/advanced directive drafted but not executed.
• Term life insurance needs additional blood work before they will finalize my policy.
I guess I should keep all of my financial accounts, passwords, medical cards and information, and other important info somewhere but I’m not sure where at this point. May be time to invest in a safe deposit box. I’m sure one of my banks will give a discounted or free SDP based on my assets. But I’m also thinking I should just make a binder and keep it at home just in case.
I'm a year younger but you have me wondering at what age one is supposed to do this? My networth is -20K so I am not sure how any of this will benefit me. Which makes me wonder, at what age should I be getting life insurance and drafting wills?
Well, obligatory "this is not legal advice if you're looking for actual legal advice please seek an attorney who is licensed in your state, preferably who has experience in wills, trusts, and/or estate planning." Whew. Okay.
So, the short answer (as with 99% of legal advice type answers) is "it depends." I have very limited information about your situation so I can't tell you specifically what you should look at getting. But it really depends on your situation. Don't wait until you feel like you need these items. I drafted mine when I was -30K in debt, because I wanted to have some say in what happens to my things. I made the mistake of not finalizing them until much later, though, and I feel so much better with a life insurance policy etc. in place.
1. Term life insurance - I got this because I have a long-term SO who I split all of my bills with. If you aren't married or have kids/dependents, this isn't as important, but I wanted to be sure that my SO and close family were okay if I passed and couldn't provide any help to them anymore (even if I don't regularly support them). I got $750K of coverage for $320/year. This is worth it to me.
2. Disability insurance - I chose not to get this, but it's up to you, and you should have it if married/dependents, otherwise it's optional. Some people carry it just until they FIRE since they can usually self-insure at that point.
3. Wills - I have one because I have a dog, and certain items I want to be sure go to certain people. I don't have much, but I would like to make sure that my dog and enough money to take care of her go to the right person. I'm not married and don't have kids, but I think everyone should have a will even if it's just for their funeral wishes and to give someone their car/furniture/whatever. Your will can get more complex as you gain assets, but even a basic one is something I think everyone should have. Google "[Your State] Intestate Distribution" to see who would get all of your stuff if you pass without a will. Usually, it goes: all to spouse, then if they aren't alive/you don't have one, all to your kids, then your parents, then your siblings, then your grandparents, then your great-grandparents, then aunt/uncles, etc. So if you absolutely don't want a will for some reason, then make sure you're 100% okay with the intestate order.
4. Power of Attorney - I have this because I know that my medical POA will follow my wishes to take me off of life support if the situation calls for it, and most people would have a really hard time doing that. Financial POA, too, because I know that person will manage my finances while I am incapacitated and will be reasonable.
5. Living Will - Especially if you're a woman I think this is important. I have a list of my wishes for life support, what level of care I am willing to undergo, for how long, with what prognosis, etc. and because I am female, I have the exact same list with changes if I happen to be pregnant at the time of my incapacitation. While I don't plan on having kids, I still want to consider all possibilities and maintain some control over my life in the event that I am braindead/in a coma/severely disabled/TBI.
Now, the extent to which you want to control these things is up to you. But I don't think having a negative net worth, or being young, should deter you. You can always update them, but getting them done first is always the hardest step.