78% of Americans under the age of 36 do not have a will or a trust in place. Frankly, most millennials show little interest in estate planning. This can create quite the mess if you are ever (God forbid) involved in a tragic accident. As discussed in a Wealth Management article, planning your estate is an important step in in preparing for the future and adulthood.
Here are a few reasons millennials need to plan their estate:
- Designate beneficiaries. Many young people only have retirement accounts as assets. It is very important that beneficiary designations are kept up to date.
- The state has a plan for you – and perhaps not what you would like. Without a will or trust, the estate of unmarried individuals with no children will typically go to their parents. If the individual had a spouse, the estate goes to them. However, some people would prefer different beneficiaries such as siblings or nieces or nephews.
- Make it easier on your parents. If you become incapacitated and do not have powers of attorney, your parents (or other loved ones) will have to file for guardianship and conservatorship. This can be avoided by having a durable power of attorney and health care power of attorney in place.
- You have valuable assets. While many young people may claim “I don’t have anything”, you have more assets than you think. An estate plan can make sure all property is distributed as desired.
- Don’t forget pets. You can create a trust for your pet to make sure they are cared for you if you die or become incapacitated.