Estate Planning for Millennials: Why You Should Start Now

Estate planning isn't just for the older generations. In fact, it’s an important step for millennials, especially in a world where the unexpected can happen at any age. Estate planning doesn’t just mean leaving behind money or property; it’s about making sure your wishes are known, your assets are protected, and your loved ones are taken care of. Here’s why millennials should start thinking about estate planning now, and what it involves.

Why Should You Create a Plan Now Vs. Later?
You might think you don’t need to plan yet. After all, you are likely still young, healthy, and in the midst of raising a family and working hard to advance in your career. But life is unpredictable. Having a plan now can help in situations like:

• Unexpected Accidents or Illness: It is likely that millennials no long feel the same level of invincibility that they felt in their 20’s and have seen loved ones and possibly peers pass away due to varying reasons. Mortality is real. If something happens to you, it’s important to have a plan for your medical and financial decisions.
• Sizable Digital Presence: In the age of social media and lives that are increasingly lived digitally, you likely have numerous online accounts. From social media accounts to your online bank accounts and everything in between. These need to be handled if something happens to you.
• Extensive Debt: It is more likely in this stage of your life that you have larger debts like car notes, mortgages, and credit card debts. According to a 2024 Lending Tree report, Millennials have the highest rate of personal loans and the second-highest auto loan debt across generations.  Having a plan can help protect your family from inheriting these debts.
• Caring for Dependents (Including Pets): If you have children, you’ll need to choose who will look after them. And according to a study by Forbes, millennials make up the largest percentage of pet-owners. Who looks after Fluffy when you pass is almost as important to some millennials.

Key Elements of Estate Planning
Here are the basics of estate planning that you should consider: 

• Will: A document that explains who gets your stuff when you die. Without one, the state decides what happens to your belongings.
• Living Will: A document that outlines what medical treatment you want if you're unable to make decisions yourself.
• Power of Attorney: A trusted person makes financial or healthcare decisions for you if you're incapacitated.
• Beneficiary Designations: Some accounts (like insurance or retirement) let you name who gets the money. Make sure your choices are up to date.

How to Get Started
List your stuff: Write down what you own, from property to online accounts.

• Choose a person to make decisions for you: Pick someone to carry out your wishes if you can’t.
• Pick guardians for your kids or pets: Decide who will care for them if you’re no longer around.
• Create legal documents: You can use online tools or get a lawyer to help make your plan official.
• Keep it updated: As your life changes, make sure your plan does too.
• Work with a dedicated estate planning attorney to get started or talk to an XML Wealth Advisor who can point you in the right direction. 

Final Thoughts
It might seem like estate planning is something you can put off, but starting early gives you peace of mind. You’ll know that your wishes are clear, and your loved ones are taken care of, just in case. 

Have questions about how these insights and ideas could impact your personalized wealth management strategy? Let’s talk.

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