Author: Attorney Delaney Agnew
Phone: 608-257-0945
Email: dagnew@hurleyburish.com
The transition into adulthood is typically marked by major life events such as going off to college, entering the workforce, moving away from home, buying a home, getting married, or even starting a family of your own. However, an important part of this transition should include planning for the unexpected.
Planning for death or incapacity is not typically brought up in pleasant dinner table conversation, and most young people view their own death or incapacity as something so far off in the future that it can wait for another day. There is a common myth that this type of planning should be left to the elderly or the very wealthy, when in fact, estate planning is something that should concern all adults, including young adults. An unforeseen event—such as an illness or tragic accident—can affect any adult at any time, and having a solid plan in place can help make the unexpected much easier on your loved ones.
Below is a list of common estate planning tools that may become necessary at any age:
- Power of Attorney for Health Care
Most young people do not realize that once they turn 18 years old, their parents can no longer automatically make health care decisions on their behalf. If you were to become incapacitated, a Power of Attorney for Health Care appoints an agent to make decisions on your behalf when you are unable to. While many people associate incapacity with neurological disorders such as dementia in older adults, incapacity can occur at any age. It may be triggered by an illness, accident, or even an emergency surgical procedure—including a cesarean section during pregnancy.
If you become incapacitated without a valid Power of Attorney for Health Care on file with your provider, Wisconsin law does not recognize “next of kin” for decision-making authority. Therefore, your family members, spouse, partner, or friends would have to petition the court for guardianship to make health care decisions on your behalf. Petitioning for guardianship is complex, time-consuming, and costly, often requiring the assistance of an attorney to navigate the court system. Depending on the situation, there may not be time to complete guardianship proceedings before decisions need to be made. Moreover, someone you would not have chosen could be appointed by the court.
Executing a Power of Attorney for Health Care in advance ensures you have a designated, trusted decision-maker in place should the unexpected occur.
- Declaration to Physicians (Wisconsin Living Will)
Another important document concerning your health care is the Declaration to Physicians, or Living Will, which makes your wishes clear in the event of a medical emergency. While it’s important to have conversations with your Health Care Agent, written documentation can provide invaluable guidance during a potentially distressing time.
These decisions may include whether you want life-sustaining measures taken if you are terminally ill with no likelihood of recovery and treatment would only increase suffering. Life-sustaining measures may include withdrawing or withholding a feeding tube if it causes pain or diminishes comfort at the end of life. Executing a Living Will, or incorporating Living Will provisions into your Power of Attorney for Health Care, can help ensure your wishes are respected.
- HIPAA Release
Under the Health Insurance Portability and Accountability Act (HIPAA), once you turn 18, no one—not even your parents, spouse, or children—has automatic access to your medical records unless you authorize it. A HIPAA Release works alongside your Power of Attorney for Health Care by granting your agent access to your medical information so they can make informed decisions.
- Power of Attorney for Finances and Property
Another essential consideration is who will manage your finances and property if you are unable to do so yourself. A Power of Attorney for Finances and Property allows you to appoint a trusted financial agent to perform tasks such as paying bills, depositing checks, filing taxes, managing investments, or even selling property.
Without a designated financial agent, your loved ones would have to petition the court for guardianship if you become incapacitated. Like health care guardianship, this process is often time-consuming and costly. A Power of Attorney can also be effective regardless of incapacity, depending on how it is drafted. For instance, if you’re closing on a home but can’t attend the closing, your spouse or partner (as your agent) could sign documents on your behalf.
- Trusts and Wills
Most young people don’t view trusts and wills as necessary because death feels far off. Unfortunately, the unexpected can happen at any time, and these documents provide vital protections for your assets and loved ones.
If you die without a will or trust in Wisconsin, your estate will be distributed through the probate court. Probate can be time-consuming, complicated, and often requires legal assistance. Without a plan, your estate is distributed according to state intestacy laws. This can create problems if you have a strained relationship with family, a long-term unmarried partner, or children from a previous relationship.
Creating a will or trust with a qualified estate planning attorney can help avoid probate altogether, simplifying the distribution of your estate for your loved ones. An attorney can also implement strategies to minimize estate taxes and protect your assets from creditors or irresponsible beneficiaries. This is especially useful for young adults who own businesses or have significant inheritances they wish to keep in the family.
Additionally, wills and trusts are vital if you have minor children. These tools allow you to appoint guardians, protect your children’s financial futures, and avoid legal battles between family members in the event of your death. Having conversations now about who would raise your children can help reduce future conflict.
Conclusion
Estate planning is for everyone. Being proactive and creating a plan ensures that your wishes are honored in any unforeseen circumstance. It’s also important to revisit your estate plan during major life events—such as marriage, the birth of a child, divorce, serious illness, or acquiring significant assets—to ensure it evolves with your life.
Investing in estate planning early offers peace of mind and long-term security for both you and your loved ones—no matter what the future holds.
