Last week, we discussed estate planning for same-sex couples and this week we’ll look at another group that needs to consider their unique estate planning needs.
“Engage Millennials in Estate Planning” is an article aimed at attorneys but it has important reminders for millennials and anyone else who puts off estate planning. The article describes millennials as being more money-conscious that older generations may think, especially when they have worrisome student debt. But it also adds that like previous generations of young adults, they can’t yet see themselves growing old and think estate planning is for older people.
Millennials who are married (or in common law relationships) and millennials who have children may see the obvious benefits of having a estate plan, even if they procrastinate about creating one. You may not see the benefits if you are unattached or don’t yet have children.
When you don’t outline beneficiaries, your state will decide who will receive your assets. And someone reading this may not think they have many assets but millennials may underestimate the value of what they have. Young adults with life insurance policies, homes, cars, and jewelry may seem like prime candidate for estate planning while those without those things may not see the need. However, in addition to things like retirement accounts and property, millennials may have other resources like pets, family memorabilia, and digital assets. An estate plan can address the future of all of these things. You will certainly want someone you trust to take charge of your pet. Even if your memorabilia has more sentimental value than cash value, you may still want to decide how it is distributed. And if you didn’t know, you can outline the future of your digital assets such as photos and social media accounts.
Sometimes young people avoid estate planning because they don’t want to think about not being around. Taking stock of what you have can be a valuable exercise in making the most of what you have. When you’re ready to have greater awareness of your assets and plan for the future, a Fee-Only financial planner can help you with the financial aspects of estate planning.