Too Young to Plan? Think Again
Insights from Michael Ziminsky, AVP, Trust Officer for Tompkins Financial Advisors
“The secret of getting ahead is getting started.” – Mark Twain
Most young families are doing all the right things; earning, saving, investing, but many haven’t put a plan in place for the moment something interrupts that progress. A common misconception is that estate planning is only for the wealthy or older people. The reality is estate planning is less about how much you have and more about protecting what you do have for the ones you care about, with clarity and intention.
So, what is estate planning?
At its core, estate planning is a framework that governs two things: how your financial and personal affairs are handled if you’re unable to make decisions, and how your assets are handled after your death. For most younger individuals and families, an estate plan does not need to be overcomplicated. You should build a strong foundation first, which often includes:
- A will to outline asset distribution and guardianship
- A durable power of attorney for financial decisions
- Healthcare directives to guide medical care
- Updated beneficiary designations on retirement accounts and life insurance policies
If you have minor children or desire more control, a trust may be appropriate to manage how assets are distributed over time. While we also see these tools used in more advanced planning, implementing tax strategies or wealth transfer strategies, their primary purpose is much more practical: making sure the right people can step in to make decisions and carry out your wishes efficiently.
Why it Matters Earlier Than You Think
Many people associate estate planning with wealth accumulation, when the need for planning often begins with responsibility, not net worth. If you’re in your late 20’s, 30’s or early 40’s, chances are you already have:
- a steady income and built up some savings
- retirement savings (IRA, 401(k), etc.)
- a home or plans to purchase one
- life insurance
- a spouse, partner, and/or children
These are not abstract financial concepts; they are the foundation of a life that others may depend on. Without a plan, these building blocks can create confusion or delays at the worst possible time.
From a fiduciary perspective, the consequences of not having an estate plan are rarely theoretical, they tend to show up in very practical ways: loss of control over who makes decisions on your behalf, delays and administrative burdens on the people you leave behind, and gaps in incapacity planning that can leave families without clear guidance during an already difficult time.
Estate planning today must account for factors that prior generations didn’t face.
With the rise in digital assets, non-traditional family structures, and younger generations changing jobs or relocating more frequently, your estate plan must evolve along with your life. It is not a one and done event. Plans should be flexible and reviewed, at a minimum, whenever a major life event occurs.
For the next generation, estate planning is less about transferring wealth and more about protecting progress. The goal isn’t just to build wealth, it’s to build a plan that ensures what you’re building today continues to support the people and priorities that matter most tomorrow.
Estate planning can feel overwhelming, but you don't have to navigate it alone. I'm here to help you understand these changes and take the right steps for your family. Please reach out if you have questions or would like to schedule a review of your estate plan.
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Investments and insurance products are not insured by the FDIC, not deposits of, obligations of, or guaranteed by the bank or its affiliates, and are subject to investment risk including possible loss of principal. The opinions voiced in this material are for general information only and are not intended to provide specific tax or accounting advice or recommendations for any individual. Please consult your tax and accounting advisors before engaging in any transaction.