Estate planning is often thought of as something that only older adults need to worry about. But the truth is, everyone – regardless of age – can benefit from having an estate plan.
Millennials, in particular, face unique estate planning challenges that other generations don’t. From student loan debt to the gig economy, there are a number of factors that make estate planning for millennials different.
- Protecting Digital Assets - Millennials tend to have a lot of digital assets, from social media accounts to online banking and investment accounts. Without an estate plan, these assets can be lost or inaccessible to loved ones after their passing. An estate plan can include information on how to access and manage these digital assets after death, ensuring that they are properly transferred or deleted according to the individual’s wishes.
- Addressing Student Loan Debt - Millennials are burdened with more student loan debt than any generation before them, and many of them may have co-signed loans or have their parents as co-signers. An estate plan can help address this debt and ensure that debts are paid off according to the individual’s wishes after death. For example, life insurance policies can be used to pay off outstanding student loans, so co-signers are not left with the debt.
- Planning for the Gig Economy - Millennials are more likely to have non-traditional work arrangements, such as freelance or gig work, which may not come with the traditional employee benefits like healthcare and retirement plans. An estate plan can help address these issues by outlining how retirement savings will be transferred and how healthcare will be covered after death. It can also include provisions for incapacity, such as appointing a trusted person to make healthcare and financial decisions if the individual becomes unable to do so themselves.
Overall, estate planning is important for everyone, but millennials face unique challenges that make it especially important to consider implementing an estate plan. By taking a proactive approach to estate planning, millennials can ensure that their assets and debts are properly addressed, and their wishes are carried out after their passing.
The opinions voiced in this show (program; podcast) are for general information only and are not intended to provide specific advice or recommendations for any individual.
This information is not intended to be a substitute for specific individualized tax or legal advice. We suggest that you discuss your specific situation with a qualified tax or legal advisor.