In an era where millennials rapidly reshape societal norms and expectations, one crucial area of adult life remains largely overlooked: estate planning. It’s a topic many associate with older generations or the uber-wealthy, but millennials — encompassing young professionals, new parents, and everyone in between — stand to benefit significantly from early estate planning. Here’s why estate planning is not just a concern for the elderly or affluent, but a critical tool for every millennial aiming to secure their financial future and peace of mind.
Why Millennials Need Estate Planning
1. Protecting Your Assets and Investments: Millennials are the first generation to grow up with the Internet, leading to new forms of investment like cryptocurrency in addition to traditional real estate and retirement accounts. Estate planning ensures that these assets are properly managed and distributed according to your wishes should anything unexpected happen.
2. Providing for Your Children: For new parents, estate planning is indispensable. Naming a guardian for your children in your Durable Financial Power of Attorney and Will is a decision to important to leave to the courts. Additionally, setting up a Trust can ensure your children’s financial needs are met outside of court and in a manner you see fit until they’re old enough to manage the inheritance themselves.
3. Digital Legacy: Millennials live online. From social media accounts to digital assets, estate planning now includes managing your digital footprint after you pass away. Deciding what should happen to these digital assets is a unique aspect of modern estate planning.
4. Healthcare Directives: Estate planning isn’t just about financial assets – it’s also about your health. A Healthcare Power of Attorney and Living Will can specify your wishes for medical treatment if you’re unable to communicate them yourself.
5. Avoiding Probate: Without a clear estate plan, your assets could end up in probate — a lengthy and public legal process that can significantly diminish the value of your estate and delay its distribution to your loved ones.
Steps to Start Your Estate Planning Journey
1. Inventory Your Assets: Include everything from physical items, like property and vehicles, to intangible assets, like retirement accounts and digital assets.
2. Consider Your Beneficiaries: Decide who you want to inherit your assets. This can include family, friends, and charitable organizations.
3. Draft Your Trust and Will: A Trust is the cornerstone of a solid estate plan. It specifies your beneficiaries and what they will receive. For parents, A Will names guardians for their children.
4. Set Up Advance Directives: Prepare a Healthcare Power of Attorney and Living Will to handle medical decisions on your behalf if you’re incapacitated.
5. Review and Update Regularly: Life changes — and so should your estate plan. Review and update your plan regularly, especially after major life events like marriage, divorce, the birth of a child, or significant changes in your financial situation.
Conclusion
Estate planning may seem like a daunting task, especially for millennials who are already navigating numerous challenges in today’s fast-paced world. However, the peace of mind that comes from having a comprehensive estate plan in place is invaluable. By taking control of your estate planning now, you’re not just securing your future, but also protecting and providing for those you love. It’s never too early to start planning for tomorrow.
For more information about how we can assist you, or if you have further questions regarding your estate plan and divorce, please reach out to us at (517) 708-2222 or explore our resources, plans, and FAQs at Cornerstone Legal.
Call (517) 708-2222 or email me at Katrina@CornerstoneLegalPLLC.com
