Up until a few years ago, estate planning was regarded as a general term – with seniors and millenials understanding the concept the same way.
Times have changed rapidly.
As time goes by and lifestyles change, research has found out that the estate planning needs for millenials are totally different from the needs of other age groups.
In 2020, we define a millennial as someone born between 1982 and 2000. As part of this group, your estate planning needs differ from the needs of your parents, or anyone older than you. To find out where you lie, talk to your local Estate planning attorney to start planning.
The Millennial View of Financial Planning
Ask any millennial to write down a list of future plans, and you will be surprised that 90 percent will be all about career progression and upcoming vacation plans. Their mind is focused on graduating, getting a good job, finding a spouse, starting a family, purchasing a home, and exploring the world. Way down the list will be a scribble, not clearly brought out, on planning their estate. Odds are 90 percent of them won’t have this vital task on the list.
This comes as no surprise, given that concept of designing legal documents, investment plans, possible trusts, and powers of the attorney for financial and medical well-being is jargon, especially to those that are not yet married, or that don’t have much wealth.
Many people believe the best period to start handling these plans is when they hit 45 years or later – big mistake. The truth is that a well-laid out estate plan should be at the top of your list, whether you are 20 years old or 50 years old.
Most millenials brag about their financial prowess, how they handle money well – this is good, but it isn’t enough. Part of being responsible with your life and your finances is to plan.
Barriers to Estate Planning for Millenials
Although estate planning is a fundamental fragment of any future plan, it isn’t as easy as it looks, making most people to postpone it or give up on it outright. The topic and process itself is tough, albeit scary for some, but not as tough as the state you leave the people close to you when you don’t have an estate planning strategy set out.
You might think that life is all about developing the right serenity, but it is more about making sure your beneficiaries don’t have an extra issue to handle when hardship strikes.
A recent study shows that more adult Americans are shying away from making a will – a whole 25 percent drop from 2017. The key reason is that few resources exist to educate millenials on the importance of estate planning.
Additionally, millenials are busy individuals. The current lifestyle is such that more time is spent behind an office desk handling deadlines rather than spending time with an estate planning lawyer to plan for the inevitable.
A big percentage doesn’t know why this process is important, which gives rise to the question, “why should you plan your estate?”
The Benefits of Estate Planning to Millenials
Before you pack a bag and head to Mombasa for a vacation, or any other form of adventure, protect your estate. Here are reasons why:
Your Estate is Vast Beyond Your Imagination
Millenials believe they only have to plan their estates when they are wealthy to a certain extent. This is a wrong notion. Instead, understand that you owe your beneficiaries more than what you can account for.
Your house, vehicle, retirement account, commercial and personal belongings, insurance policies and inherited properties are all included in the estate. Try to ensure all these resources get to the intended beneficiaries before you board that plane.
Allows you to Adjust to the Situation
Circumstances change, albeit positively or negatively. When this occurs, update the list of your heirs as necessary. When you are single, your parents are automatically your beneficiaries, but the situation changes when you get married – your wife and kids become top priority.
Gives you a Chance to Select a Legal Representative
In the event that something happens (unfortunately), you will need someone to handle your financial affairs to ensure the assets are allocated accordingly.
Apart from protecting your physical assets, having an attorney makes it easy to handle your digital assets as well.
Estate planning protects you against ills that happen to millenials that lack a plan for their property. If something happens, your loved ones are protected. Work with an estate planning attorney to understand the process entails, and secure your future…today!