Why estate planning is not just for the elderly or ultra-rich

Without a proper estate plan, families are often forced to go through probate - a legal process that can be lengthy, costly, and emotionally draining.

Estate planning is often misunderstood as something only the elderly or the ultra-wealthy need to worry about. In reality, it’s a crucial step for anyone who wants to ensure that their loved ones are protected, their wishes are respected, and potential legal and financial complications are avoided - no matter their age or income level.

Estate planning is about more than money

Estate planning is not just about distributing wealth. It’s about making important decisions ahead of time - such as who will take care of your children if something happens to you, who will manage your finances if you’re incapacitated, and how you would want to be treated medically in critical situations. Without a clear plan, these decisions can be left to the courts or to relatives who may not know what you would have wanted.

Having an estate plan also helps reduce stress for your family during emotionally difficult times. It gives them clarity, direction, and the legal tools they need to carry out your wishes without conflict or confusion.

Everyone has something to protect

Many people think they don’t need an estate plan because they don’t own significant assets. But estate planning isn’t only for millionaires. If you have a bank account, a car, business, financial and non-financial assets, digital assets, or even personal belongings of sentimental value - you have something worth protecting. More importantly, if you have children, a partner, or dependents who rely on you, estate planning becomes even more essential.

A will, a power of attorney, and a healthcare directive are simple documents that can go a long way in safeguarding what matters most - your people and your peace of mind.

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Why young adults should take it seriously

It might surprise many to learn that interest in estate planning among young adults has grown significantly in recent years. Life is unpredictable, and being young doesn’t make you immune to emergencies or accidents.

We have noticed that our clients have become more aware of the importance of making Wills post Covid.

Young professionals often overlook the fact that they are building wealth, whether it’s through savings, investments, or retirement accounts. They may also have digital assets like crypto holdings or content platforms. Without a plan, access to these accounts can be lost or tied up in legal disputes.

Here are some of the terms that you ought to know while making a Will:

Testator -- The person who creates and signs the Will

Beneficiaries -- Individuals or organisations who receive assets or gifts from the Will

Executor -- The person appointed to carry out the wishes in the Will

Witness -- People who observe the testator signing the Will

Legal Advisor -- is a lawyer who helps draft or review the Will

Guardian – Authorised person in charge of minors if Will is prepared for minors

Trustee -- Manages any trust established in the Will

In case of children with special needs, the complexity of creating a Trust and ensuring special expenses, goals for lifetime of children and self, guardianship, legal expenses, loans, house help, house goal needs with lifelong help have to be considered including making a Trust with Trustees younger than the special needs child, and special insurance policy to cater to needs of these children have to be built in the Special Needs matrix of financial planning.

If a Will is not made, then a person is said to die intestate.

Further, when a Hindu dies intestate (without a valid will), their property is distributed according to the Hindu Succession Act, 1956, as amended. The treatment of a married, widowed, or divorced wife under this law depends on who died intestate (the husband, wife, or someone else) and the marital status of the wife at the time of his death. Sec 15(1) of the Act lists Priority of Order of legal heirs. Sec 16 details the manner of division of assets.

Also read | What to do if your Will is challenged and how to protect your financial legacy

The hidden costs of avoiding it

Without a proper estate plan, families are often forced to go through probate - a legal process that can be lengthy, costly, and emotionally draining. Probate can take months or even years, especially if there are disagreements among heirs or no clear instructions left behind.

Lack of planning can also lead to unintended outcomes. For instance, in many places, if you die without a will, your assets are divided according to state laws - not your personal wishes. This could leave out unmarried partners, stepchildren, or other people you intended to provide for.

It’s not complicated to get started

While estate planning might sound intimidating, it doesn’t have to be. You can begin by having a simple Will drafted and adding a healthcare directive that outlines how you want to be treated if you can’t make medical decisions yourself. You may also want to assign someone you trust to manage your finances and legal affairs if you’re ever unable to.

You don’t need to have a high net worth or hire expensive lawyers to get started. Many online platforms offer basic estate planning tools, and a consultation with an estate lawyer can help you tailor your plan to your specific needs. Most importantly, your plan should be reviewed regularly and updated as your life changes - for example, if you get married, have children, or acquire new assets. Any changes in a WILL can be made via a CODICIL.

Also read | Planning to write your will? Avoid these common mistakes

Final thoughts

Estate planning is not about expecting the worst - it’s about being responsible, prepared, and thoughtful about the people and the life you care about. It gives you control, clarity, and peace of mind, no matter your age or how much money you have in the bank. Whether you're 25 or 65, creating an estate plan is one of the most meaningful steps you can take to protect your future and the people you love.

The author is Founder, Managing Director, and Sebi-registered Chief Financial Planner at Dilzer Consultants Pvt Ltd.

Disclaimer: The views expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with financial advisor before taking any decisions.