Estate planning is a component of financial responsibility and security.
For millennials, it might seem like a task for the distant future. In reality, it is a prudent move to consider at any stage of life.
1. Protecting your loved ones
Creating a clear and legally binding estate plan ensures that you can take care of loved ones even in the event of your untimely demise. It eliminates uncertainty and potential conflicts among family members, ensuring your assets get distributed as per your wishes. By naming beneficiaries and specifying the distribution of assets, you can provide for your family’s financial stability and peace of mind.
2. Navigating unexpected health challenges
Life is unpredictable, and health challenges can strike at any age. In the absence of a well-crafted estate plan, you might not have control over who makes medical decisions on your behalf or the management of your financial affairs during your incapacitation. By establishing a healthcare proxy and power of attorney, you can designate a trusted individual to make critical decisions for you.
3. Safeguarding digital assets
In an increasingly digital world, millennials possess a significant amount of digital assets, from cryptocurrency to social media accounts. In a recent study, 74% of millennials with an estate plan appointed a digital executor.
4. Preparing for life changes
Major life events, such as marriage, divorce or the birth of children, can significantly impact your financial situation and your wishes regarding asset distribution. Estate planning allows you to revise and update your plan to accommodate these life changes.
Estate planning may not be at the forefront of a millennial’s mind, but it is a responsible step that offers multiple benefits.