Estate Planning in Your 20s and 30s: Why It Matters

Many individuals in their 20s and 30s assume estate planning is something you deal with later — after you retire, build significant wealth, or start considering long-term care. But in practice, some of the people who are most in need of estate planning are younger adults, young couples, and parents with minor children. In Missouri, having a simple, well-designed plan in place can prevent unnecessary court involvement and make a difficult situation easier for your family.

Most people don’t realize once you turn 18, no one — including your parents or spouse — has automatic legal authority to make medical or financial decisions for you if you are unable to speak for yourself. If you are in an accident or become temporarily incapacitated, your loved ones may not be able to access information or act on your behalf without going to court. That process takes time, money, and adds significant stress to an already stressful and often time sensitive situation.

That’s why basic estate planning documents like a Durable Financial Power of Attorney for finances, Healthcare Power of Attorney, and Physician’s Directive, and are so important — even for young adults with modest assets. These documents let you choose who can step in and act for you if needed. It’s not about expecting the worst — it’s about removing uncertainty and delay if something unexpected happens.

Younger workers are also more likely than ever to have retirement accounts, investment accounts, and life insurance through their jobs. Without proper documents tailored to your specific situation and guidance on the proper way to title you assets, these newly acquired assets may end up in probate. Improperly titling these assets could also have unintended consequences for your children or loved ones.

Most parents think that they can just leave their assets to their minor children. While you can leave your assets to your minor children, in Missouri, if a minor child inherits more than $10,000, a minor conservatorship is generally required to manage those funds. That means someone will be appointed by the probate court as conservator. That person must answer to the probate court, file reports and accountings, and remain under court supervision to handle the child’s money. This adds cost (attorneys fees and court costs) and ongoing administrative requirements. With proper planning, parents can structure how a child’s inheritance is managed and potentially avoid or reduce the need for a formal conservatorship.

For couples with minor children, estate planning moves from important to essential. In Missouri, a Last Will and Testament allows you to nominate who you want to serve as guardian of your minor children if both parents pass away. If you do not make that nomination, the decision is left to the probate court. While you may think that decision should be a no-brainer based on your family dynamics and relationships, judges do not have the luxury of knowing these often-complicated family dynamics. Judges do their best, but they are guided by statute and facts presented, not years of relationship building. They must make quick decisions based on limited information and competing requests from family members. Naming a guardian ahead of time gives clear guidance and reduces the risk of disputes or “that” individual being appointed as guardian of your child.

Estate planning for younger individuals is usually not complicated. It is often a focused set of documents designed to answer practical questions: Who can act for you if you cannot? Who receives your assets upon your death? Who raises your children? Who manages money for them if they inherit it? Getting those answers properly structured in an estate plan gives your family clarity and legal authority when it matters most.

Just as important, estate planning is not a one-time event. A good plan is designed to be updated as your life changes — marriage, children, career growth, and new assets. Starting early makes those updates easier because you are building on an existing foundation instead of starting from scratch in a crisis.

In short, estate planning is not about age or wealth. It is about decision-making, protection, and ensuring your wishes are in writing and legally binding. Putting a basic Missouri estate plan in place now is one of the simplest ways to take care of the people who would be left dealing with the consequences if something unexpected happens to you.