Did you know Millennials need estate planning? Many adults are helping their aging parents get their affairs in order and don't realize they too need estate planning, reports a recent article, “I’m Way Too Young For Estate Planning. Or Am I?” from The Wall Street Journal. Yes, even if you’re young (er), you need an estate plan! Here’s why it’s not just for your grandma —it’s for everyone who’s a legal adult, including you.
Your Health Matters: The Advanced Healthcare Directive
Let’s start with the big one: What if you got sick or injured and couldn’t make your own medical decisions? Who steps in? At 18, you’re a legal adult, which means your parents or anyone else can’t just waltz in and make choices for you.
With an Advanced Healthcare Directive (also called a healthcare proxy or healthcare power of attorney), you can name someone you trust to make medical decisions for you if you’re incapacitated. Think of it as your way of saying, “Hey, if I can’t say it myself, you’ve got my back.”
Show Me the Money: Financial Power of Attorney
An estate plan isn’t just about what happens when you’re gone—it’s also about what happens if you’re temporarily out of commission. That’s where a Power of Attorney (POA) comes in. This document lets someone you trust handle your finances if you’re unable to do so. They can pay bills, manage bank accounts, and keep things afloat.
Even if you don’t have a mansion or a yacht, you still have bills and financial accounts that need managing. With a POA, you’re covered.
Your Last Wishes: The Importance of a Will
Yes, even in your 20s or 30s, having a Last Will and Testament is a smart move. A will allows you to decide who gets what after you're gone. Maybe you want your sister to have your vinyl collection or your best friend to get that quirky mug collection—they won’t know unless it’s in writing.
Most importantly, if you have minor children, you need to establish who will care for them and how they will access your estate to provide of your children..
And if you think you don’t own enough to warrant a will, think again. A will lets you designate a person to manage your affairs, and more importantly, it sets a precedent for planning your future.
Living in the Digital Age: Managing Digital Assets
Got social media, email accounts, or a little cryptocurrency on the side? That’s your digital estate. You can’t just leave it floating around. Some platforms allow you to designate a “legacy contact” or assign specific instructions. An inventory of these digital assets helps your family handle them, so they’re not left guessing about your Netflix login or Bitcoin stash.
School Loans, 401(k)s, and Accounts Galore
Yes, millennials need estate planning for inventorying things like student loans, retirement accounts, and other financial details is a big part of estate planning. However, don’t throw these details in your will—once a will is probated, it becomes public, so it’s best to keep your account specifics in a separate, secure document.
Starting the Tough Talks: Family Conversations on End-of-Life Care
Creating an estate plan isn’t just about you; it’s an invitation to open conversations with loved ones about end-of-life care and plans. It may feel like a tough topic, but getting everyone’s wishes on the table can prevent a world of confusion and heartache later.
Life Changes, Estate Plans Change
Got a new partner? Lost a loved one who was listed as an executor? Estate plans aren’t one-and-done; they evolve with your life. Updating your plan regularly is part of being a responsible adult.
Millennials need estate planning. Creating or updating an estate plan may not be on the top of your “fun things to do” list, but it’s one of the most important. Think of it as a love letter to your future self and your loved ones, ensuring they know exactly what you want when the time comes. Let’s take this step together and start planning for peace of mind. Book a call with Vick Law, P.C. today to start planning.
Reference: The Wall Street Journal (Oct. 18, 2024) “I’m Way Too Young For Estate Planning. Or Am I?”
