Why every physician in their 30s needs an estate plan

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To many, estate planning sounds like a concern for retirees or wealthy magnates. But in my years working with professionals across various specialties, I’ve learned that the earlier one starts, the better. Even in your 30s, you could have a substantial amount of assets — some tangible, such as a home or a car, and some intangible, such as investment accounts and intellectual property. This is true, especially for physicians who have just begun earning attending-level salaries and are looking to make the most of their higher income.

But there’s another factor: debt. An alarming number of young doctors finish their residencies with staggering student loan balances. According to recent data from the Association of American Medical Colleges, the median medical school debt is still hovering around $200,000, and that might be conservative for some specialties. If something were to happen to you unexpectedly, the way these debts are handled can profoundly affect your loved ones.

A carefully crafted estate plan can shield them from legal entanglements and potential financial stress, ensuring that your wishes — not the courts — determine how liabilities and assets are addressed.

Debt management and asset allocation

Howard Enders
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Physicians, in particular, have a unique financial trajectory. Residency salaries can be modest, but once you shift into full practice, your income grows exponentially. I’ve seen many clients go from just keeping their heads above water with medical school loans to rapidly building wealth within a few short years. They start investing in mutual funds, real estate or even private clinics.

However, this rapid increase in earnings can create complexity. Your first estate plan might revolve around simple term life insurance to cover outstanding student debts. But a few years later, you might own a home, set up a family trust and have other assets — like stock options from a private practice. If you don’t regularly update your plan, you might fail to document your current financial position accurately.

That’s where estate planning comes in to help categorize your assets and protect them. A foundational plan typically includes a will, medical directives, powers of attorney and possibly a trust if your portfolio warrants it. If you have dependents or other family members who rely on your income, you can also ensure they receive proper support through structured payouts or designated beneficiaries.

Keeping pace with your growing career

One of the biggest misconceptions I encounter is the notion that estate planning is a “set it and forget it” exercise. In reality, estate documents need regular checkups — just like you advise your patients for annual physicals or follow-up visits. Every time you reach a major life milestone, such as getting married, having children, buying a house or changing specialties, you’ll want to revisit your documents.

Over the last couple of years, I’ve seen a marked increase in the number of physicians switching jobs or opening telemedicine practices, often spurred by shifts in the health care landscape. In fact, close to 22% of physicians considered transitioning to a different practice model or location due to postpandemic changes. With these transitions come changes in income, benefits and retirement plan structures that should be reflected in your estate plan.

Updating your financial records is also critical. You need to ensure that the designations on your life insurance, 401(k) or other retirement accounts align with your current wishes. If you pay off a student loan or acquire a new property, it should be noted clearly and factored into your overall strategy. All this can sound like a lot of work, but digital solutions are making these updates far easier than you think.

Embracing digital estate planning tools

I’ll admit, when I began in the estate planning industry, everything was paper-based. There were binders upon binders of documents, and updating them meant rummaging through folders to find the right clauses to tweak. Thankfully, we’ve stepped into a digital era that streamlines and secures every aspect of estate planning. Modern platforms now allow you to electronically store critical documents, track changes to your finances in real time and grant access to trusted advisers or loved ones with a few keystrokes.

Why does this matter for a physician in their 30s? Because your financial life is likely evolving quickly, and if you’re investing in the stock market or dealing with multiple insurance policies, you’ll want a place to coordinate everything seamlessly. Digital estate planning tools often come with intuitive dashboards that let you see all your assets, liabilities and legal documents in one secure location. If you’re paying off a portion of your student loans early, you can record that update without sifting through paper contracts. If you buy a rental property, you can add it in and note its projected income or liability in your plan.

Moreover, these platforms typically use encryption and multifactor authentication, meaning your sensitive data are well protected — an important consideration when you’re dealing with significant assets. They also make it easier to share documents with an estate attorney or financial adviser, cutting down on time-consuming appointments and administrative back-and-forth.

Final thoughts from an old hand

Trust me when I say that starting early can save you and your loved ones a world of stress and expense down the line. A digital estate plan goes beyond just drafting a will; it’s building a framework that grows with you, from managing medical school debt to reaping the fruits of your ever-expanding medical career.

If you’re a young doctor, carve out some time for estate planning. It may seem like a burden now, but it’s an investment in your family’s future and your own peace of mind. With modern digital tools and thoughtful, regular updates, you can ensure that everything you’ve worked so hard for is protected — no matter what curveballs life throws your way. After all, in this fast-paced world, security and foresight are some of the greatest gifts you can give yourself and the people you hold dear.

Howard Enders is the chief operating officer of The Estate Registry, where he leverages his extensive expertise in operations and management to drive growth and innovation.