Millennials and Estate Planning

Millennials and Estate Planning

Millennials and estate planning might not sound like two terms that can go together. However, many members of this generation understand the importance of planning for the future. In the past, younger individuals did not put much thought into their wills and estate plans. Today, millennials are creating a plan to protect their loved ones and assets. If you are a millennial and want to learn more about an estate plan, schedule a consultation with Jennifer V. Abelaj Law Firm by calling 212-328-9568.

What Is Estate Planning?

According to the American Bar Association, estate planning covers the legal and financial matters that relate to the handling of assets and care in the event of a disability or death. Over the past years, millennials and estate planning has become a hot topic. While some individuals in this generation have taken their estate plans seriously, many still do not have a plan in place. An estate plan is much more than a Last Will and Testament (Will). Estate planning does not require having great wealth or a large estate. Anyone with any type of assets, even a small bank account, should consider creating an estate plan.  An estate plan ensures that all your wishes are met in the event of your death or incapacity. When it comes time to create an estate plan for you, schedule a consultation with the experienced estate planning attorneys at Jennifer V. Abelaj Law Firm.

Millennials Need an Estate Plan

According to the United States Government Accountability Office, millennials have less assets than previous generations, however, they still need to think about estate planning. Here are a few points to take into consideration.

Designates Beneficiaries

While many younger millennials might not have a lot of money, most have a bank account. Those who have been in the workforce for a few years could have a 401k retirement plan and/or a life insurance policy. When that person passes away, who will inherit all those assets? With an estate plan, the beneficiaries are clearly designated. Unfortunately, some people die without a will, trust, or an estate plan. In that case, the assets may have to be divided between the living relatives, leading to lengthy court proceedings. Having relatives fight for assets is the last thing anyone wants to happen after they die. 

Medical Power of Attorney

What happens if you become incapacitated or seriously ill? With a medical power of attorney, a designated party can make medical decisions according to your wishes in the estate plan. If a person cannot communicate or make decisions, a power of attorney gives the designated person the right to make any health decisions, including withdrawing life-sustaining medical care. Along with a power of attorney, an estate plan will often include all the burial arrangements and specifies whether the individual wants to donate their organs. Many millennials do not realize that these documents are very important, especially if someone wants to have unique end-of-life wishes. This part of the estate plan allows an individual to appoint someone to act on their behalf regarding any financial or medical decisions. 

Durable Power of Attorney

Power of attorney is centered around more than just medical decisions. If a person becomes incapacitated or seriously ill, then that same person can also make decisions about other affairs in the person’s life, such as paying bills or caring for pets. With a durable power of attorney document, an individual can choose someone to handle depositing checks, dealing with health insurance, or paying rent. The durable power of attorney will remain in effect until the individual withdraws it. Without a durable power of attorney document, then the issue is handled by the probate court. In those cases, a judge will appoint someone to take care of those duties. Creating a comprehensive estate plan provides peace of mind and ensures that all major decisions will be handled by a person you trust. 

Guardianship for Children and Pets

Unfortunately, parents can pass away, leaving custody issues in doubt. The other parent will often raise the children, but there are times when that person is not capable or unwilling to take on the responsibilities. In that case, millennials will want to specify someone to be a guardian to the children. These issues are crucial because if no guardians are appointed, the courts designate someone to care for the children. Choosing a person to provide for your children should not be taken lightly. This individual should have a bond with the kids and be willing to take on this difficult task. Also, only name someone as a guardian after discussing it with them first. Sometimes, people may not want to take on the responsibility of being a “parent” for someone else’s children. 

Many millennials also have pets. Usually, when a person passes away, a friend or relative will take the pets. There have been horror stories about beloved pets being left at shelters with no place to live. For anyone who loves their pets, outlining end-of-life arrangements for them is essential. Like child custody, these arrangements will allow you to choose someone who will uphold your wishes and give your pet a great home in the event of your death. 

Let a New York Estate Planning Attorney Help with Your Estate Plan

Millennials and estate planning might not seem like an expected combination, but most members of this generation realize the importance of these documents. Millennials need to think about what could help in the future with their assets, children, and pets. An estate planning attorney can help ensure the proper distribution of assets while protecting your wishes if you become ill or pass away. If you want to set up a trust, will, or need other estate planning assistance, contact the Jennifer V. Abelaj Law Firm at 212-328-9568.