Estate Planning for Millennials: Why You Should Start Now
Okay, millennials, let's talk about estate planning. I don't blame you for avoiding the subject; thinking about the worst-case scenario is tough. The problem, I find, is that many millennials don't believe that they need an estate plan. For many of us, drafting a will, setting up a trust, or arranging advance medical directives seems like something for us to simply figure out "later." It's important to know that estate planning is already crucial at our age. It doesn't just ensure your assets are well managed; it also empowers you with a sense of control and peace of mind as you move through life’s inevitable transitions.
Thinking Beyond Financial Assets
The truth is that millennials are just as prone as anyone to experiencing the unpredictability of life — tragic accident, sudden illness, the unexpected loss of a loved one, or your own untimely death. Whether you're an older adult or a young professional, having designated beneficiaries or a medical proxy is essential. In our digital age, personal wealth is highly diverse. It's not just about real estate or traditional financial accounts but also digital assets. Who would you want to handle your Instagram account or manage your cryptocurrency if you couldn't? Without a plan in place that indicates your choices, the State of New York may be the decision maker! Proper estate planning includes making arrangements for the disposition of all of your assets to ensure that they are distributed to those you want to inherit. With a well-crafted estate plan, you gain control over who receives funds from a life insurance policy, savings from a bank account, or even the rights to that memoir you're working on, all while avoiding possible legal and familial complications.
A proper estate plan not only encompasses distribution of assets through a Will or Trust, but also important documents such as healthcare directives, a power of attorney, and naming a guardian if you have young children. Expressing preferences for end-of-life care, appointing someone to deal with financial affairs in case of incapacitation, and ensuring your dependents' security is as essential for someone in their 20s as it is for someone in their 90s.
Unique & Evolving Needs
As a generation, millennials have decided to navigate life our own way, and the result is that everyone's paths are unique and varied. From co-parenting to sharing financial responsibilities with friends or launching businesses, such a wide array of life choices demands personalized approaches to estate planning! What about purchasing or owning a home with someone who you are not legally married to? What happens if you decide to part ways? You may be stuck in a costly legal battle over ownership rights. If you're single, you have just as much, if not more, need for clear directives. Even if your only asset is a bank account, you still deserve to choose who should inherit its contents should the unthinkable happen! But also consider this scenario: what if you are in a car accident and need someone to make financial or healthcare decisions on your behalf? Wouldn't you prefer to choose that person yourself instead of leaving it up to New York State law? The real power of a well-crafted estate plan is its ability to adapt, an essential quality for a generation like ours. Whether facing changes like a new marital status, starting a business, or moving abroad, a well-crafted estate plan can seamlessly align with these shifts. It ensures that your assets and future plans align with your current situation and objectives.
The “How” of Estate Planning
Spending just an hour or two consulting with a professional can lay the groundwork for a plan that grows with you. The foundational documents — like the power of attorney, health care proxy, living will, and last will and testament — need not be overwhelming. When properly drafted, these tools are customized to fit your unique circumstances, making the process less about legalese and more about your personal preferences and legacy. While there's no shortage of do-it-yourself resources, seeking advice from a knowledgeable estate planning attorney is the wisest choice because they bring insight and expertise that transform generic forms into tailored plans, mindful of state-specific regulations and your particular needs. Competent counsel will help you navigate through the complexities of estate planning to ensure that every detail is covered. This tailored strategy protects against the potential pitfalls of one-size-fits-all planning or oversights that could lead to unintended consequences. Taking the time and resources to set up your personalized estate plan now can result in major cost savings in the long run!
Don’t Leave it to Chance
As millennials, navigating uncertainty isn't new. So let's not leave the big stuff — like our future — to chance. Estate planning is another way to take charge of what comes next, even when "next" feels like a giant question mark. This approach to planning isn't just about dotting the i's on legal documents; it's a form of empowerment. By putting the right plans in action, you can chart your path while knowing your legacy, whatever shape it might take, is secure and will be passed on just how you want. It's about seeing the value in everything you've built, from online profiles to personal passions, and making estate planning part of living life fully and on your own terms. Getting your ducks in a row has a way of bringing clarity and a bit of peace, making life feel a bit more manageable.