Estate Planning for Young Adults: What You Actually Need in Your 20s and 30s

Most people in their 20s and 30s don't think about estate planning. Most of them have already made consequential decisions by default — like leaving a parent as beneficiary on a retirement account they opened at 22 and never updated. Here's what actually matters when you're young.

The Two Reasons Young Adults Need Estate Planning

1. Incapacity can happen at any age

Car accidents, sudden illness, emergency surgery — incapacity is not just a concern for the elderly. If you're incapacitated without a healthcare proxy, the hospital follows a legally defined hierarchy to determine who can speak for you. That hierarchy is designed around traditional family structures — and if your most trusted person is a partner you're not married to, a close friend, or a family member who doesn't reflect your values or wishes, the law may direct your care to someone else.

2. Your accounts already have estate planning built in — probably wrong

Your 401(k), IRA, Roth IRA, and employer life insurance all pass by beneficiary designation — outside of any will, directly to whoever is named. Most young adults named a parent when they opened their first account and never updated it. If your life circumstances have changed — partner, estranged family, anything — those designations may not reflect your wishes. Updating them takes about 10 minutes and costs nothing.

The Minimum You Need

Healthcare proxy + HIPAA release

Name the person who makes medical decisions if you can't. Give healthcare providers permission to share information with the people you trust. Both documents are free in most states — search your state's department of health for official forms.

Advance directive

Specify your wishes for major medical interventions — CPR, ventilator, feeding tube — so your healthcare proxy isn't left guessing. This document speaks for you when you can't speak for yourself.

Updated beneficiary designations

Log in to every retirement account and check who is named. Log in to your employer benefits portal and check the life insurance. Update what needs updating.

A basic will (especially if you have children)

If you have minor children, a will naming a guardian is essential — without one, a court decides who raises your child. For young adults without children, a simple will directs personal property to the right people. Many states allow handwritten (holographic) wills; online services like Trust & Will or Fabric can produce a basic will for under $100.

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Frequently Asked Questions

Do you really need estate planning if you're young and don't have much money?

Yes — and estate planning in your 20s and 30s has less to do with wealth than with two critical concerns: incapacity planning and beneficiary designations. Incapacity planning: the question "who makes decisions for me if I can't make them myself?" can arise at any age from an accident, serious illness, or unexpected medical emergency. Without a healthcare proxy (also called a healthcare power of attorney or durable power of attorney for healthcare), your doctors may not consult the person you would want making decisions — they're legally required to follow the hierarchy of legally recognized next of kin, which may not match your actual wishes or relationships. If you're unmarried or in a relationship that isn't legally recognized, your partner may have no legal standing. A healthcare proxy and an advance directive cost very little (some states provide free forms), and they ensure the right person speaks for you. Beneficiary designations: many young adults have retirement accounts (401k, IRA, Roth IRA from their first jobs) and life insurance through their employer. These pass outside of any will — entirely by who is named on the beneficiary designation form. Many young adults name a parent and never update it. Making sure the right person is named is simple and free.

What documents should a young adult have?

The essential documents for most young adults: (1) Healthcare proxy / durable power of attorney for healthcare — names the person who makes medical decisions for you if you can't. Required to give a partner, friend, or non-parent family member legal standing. Free to create in most states using state forms. (2) HIPAA release — authorizes your healthcare providers to share medical information with specific people you designate. Separate from the healthcare proxy, and often overlooked. Without this, the people you trust may not even get information about your condition. (3) Advance directive / living will — specifies your wishes for end-of-life care (ventilators, CPR, feeding tubes) in writing, so your healthcare proxy knows what you want and healthcare providers have a record. (4) Updated beneficiary designations — for all retirement accounts and life insurance. (5) A basic will — primarily to name a guardian for any minor children, and to direct specific personal property. Young adults without children or significant assets can often use a simple will template or online will service; those with children, significant assets, or complicated family situations should see an attorney.

What is the most important estate planning step for unmarried couples?

For unmarried couples — including long-term partners, domestic partners, and engaged couples who haven't yet married — the most critical estate planning steps are: (1) Healthcare proxy: without marriage, your partner has zero legal standing to make medical decisions for you. A healthcare proxy document is the only way to give them that authority. This is the single most important document for any unmarried couple; (2) Financial power of attorney: if you become incapacitated and need someone to access accounts, pay bills, manage your finances, your partner has no legal authority to do so without this document; (3) Beneficiary designations: without naming your partner as beneficiary on retirement accounts and life insurance, these assets go to your named beneficiary (often a parent) or, if no beneficiary is named, into the estate to be distributed by the will or intestacy laws — not automatically to your partner; (4) A will: without a will, your assets distribute under intestacy laws, which in virtually every state means blood relatives — not your partner — inherit. Your partner could be left with nothing from an estate you built together. These documents are relatively low-cost to create and provide enormous protection for the relationship you've built.