Why Millennials Should Consider Estate Planning

One family fondly refers to their mother’s comprehensive blue binder as “Mom’s Book of Life.” Inside, she has organized important estate planning documents, medical directives, account details, passwords, and a complete list of assets. While her adult children initially dismissed this as unnecessary for themselves, a recent Wall Street Journal article, “I’m Way Too Young For Estate Planning. Or Am I?” helped them see the value of creating their own estate plan.

Starting at age 18, anyone can benefit from having a basic estate plan. Once someone reaches adulthood, their parents lose the legal authority to make financial or health decisions on their behalf without proper estate planning documents. Here’s what everyone—especially millennials—should consider:

1. Healthcare Directive

An advanced healthcare directive (also known as a healthcare proxy or medical power of attorney) allows a designated person to make medical decisions on your behalf if you are unable to do so. This ensures that your healthcare wishes are respected, even if you’re too ill or injured to communicate them.

2. Power of Attorney

A financial power of attorney grants someone you trust the authority to manage your finances in case you’re incapacitated. This person can access accounts, pay bills, and handle other financial matters on your behalf.

3. Last Will and Testament

A will specifies how you want your assets distributed after you pass away. Even if you don’t have significant assets, you might have sentimental belongings you want to pass on to specific individuals. Writing a will is a great step toward building the habit of future planning.

4. Digital Assets

With a significant portion of life stored online, planning for digital assets is increasingly important. This includes social media accounts, email, apps, cryptocurrencies, and personal media like photos and videos. Maintaining an inventory of these assets can help a digital executor manage your online presence. Some platforms allow you to set a “legacy contact” or outline your wishes directly.

5. Financial Accounts and Debts

For items like student loans, retirement accounts, and other financial investments, create an inventory—but keep sensitive details out of the will, as it becomes public in probate court. A separate, secure list can serve as a reference for your executor and loved ones.

6. Opening the Conversation with Family

Creating your estate plan can also help you approach a conversation with older family members about their own plans. Understanding their wishes before an emergency allows everyone to make informed decisions with less stress and worry.

7. Updating Over Time

Estate plans aren’t static; they should grow and change with you. Major life events, like marriage, adding new beneficiaries, or naming a different executor, call for a review and update of your plan.

Estate planning is not just a task for older generations; it’s a smart, proactive approach to protect yourself and your loved ones as life changes. The Werner Law Firm’s experienced estate planning attorneys can help you create a plan that adapts with you, offering peace of mind and security for the future.

If you have any questions, schedule a free appointment with us through our online appointment page.

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Reference: The Wall Street Journal (Oct. 18, 2024) “I’m Way Too Young For Estate Planning. Or Am I?”