The Millennial generation is comprised of people that were born between 1981 and 1996, so they are between 28 and 43 right now.
Caring.com has been conducting annual surveys to measure the estate planning preparedness of American adults, and they break it down to age groups.
The most recent survey that was released earlier this year found that just 24 percent of people between 18 and 34 had estate plans in place.
The next oldest group was about the same at 25 percent, and a surprisingly low 43 percent of respondents 55 years of age and older had wills or trusts.
Young Families
Many people think that estate planning is something that is only relevant to senior citizens, but in reality, it is more important for younger families. Millennials are the parents of most dependent children, and young married couples usually rely on two incomes.
On the other hand, for the most part, the children of senior citizens are grown and self-supporting. Seniors should certainly have plans in place, but the potential for absolute disaster is greater for unprepared people that have children depending on them.
Estate Plan Basics
The best way to proceed from an estate planning perspective will depend on the circumstances, and this is why it is important to work with an attorney to create your plan. This being stated, there are some components that are necessary for everyone.
First, you need an income replacement strategy. Life insurance can provide a solution, and term life is surprisingly affordable for younger adults. Whole life insurance is more expensive, but it accumulates a cash value, so it is an investment of sorts.
Trusts for Minor Children
A minor child cannot handle their own financial affairs, and you have to consider this when you are planning your estate. You could use a revocable living trust as the centerpiece of your estate plan, and the trustee that you name in the document would administer the trust after your passing.
They could manage the resources that have been set aside for a minor child until they reach the age of majority. We should point out the fact that you do not lose control of assets that you convey into a living trust while you are living because you would act as the trustee.
It is also possible to use a testamentary trust to name someone to manage assets on behalf of a child. This is a trust that is contained within a will, and it would not be created until the testator passes away.
Incapacity Planning
You should also account for possible incapacity when you are planning your estate, because a devastating accident or illness can take away your decision-making capacity.
A living will is an advance directive for health care that is utilized to state your life support preferences. You can go down the list with regard to your feelings about all different types of life-support, and you can include your organ and tissue donation and comfort care medication preferences.
To account for medical scenarios that are not directly related to the use of life-support, you can add a durable power of attorney for health care. You name an agent to make decisions on your behalf in this document, but you have to include a HIPAA release to give them access to your medical records.
On the financial front, you can name a disability trustee to step into the role in the event of your incapacity if you have a living trust. A durable power of attorney for property can be added to name a representative to manage assets that are not held by a trust.
Attend a Complimentary Seminar!
You are here because you are looking for information about estate planning, and we are offering an ideal opportunity to build on your knowledge. We conduct seminars on an ongoing basis that cover all of the most important topics in an easy-to-understand manner.
There are offered on a complimentary basis, so this is a great way to invest some spare time. To obtain more information, visit our Seminars Schedule Page and follow the simple instructions to register so we can reserve your spot.
Need Help Now?
If you have already decided it’s time to work with a lawyer to put a plan in place, we can help. Call us at 860-548-1000 to set up a consultation at our Westport or Glastonbury, CT estate planning offices or send us a message through our contact page.
