As a younger generation, many individuals assume that millennials do not need an estate plan yet—mainly because they are far from needing to use it. However, this is not always the case. Millennials are creating estate plans at a record rate. They recognize the importance of planning for the future and ensuring their loved ones will be taken care of—regardless of their net worth—and not delaying the process. Viewing the estate planning trends that many millennials are using can be instructive in finding the estate plan that works best for others. Below are some of these trends and how people can utilize them in their estate plans.
What Motivates Millennials to Create Estate Plans?
Everyone has a different motivation for drafting estate plans and planning for their future. According to a recent survey, millennials were most motivated to make a plan because they had a child. Often when someone has a child, they want to ensure they are financially and physically taken care of—this includes leaving them assets in their will and appointing guardians for the kid in case the parents pass away. More so than other generations, millennials are designating non-blood relatives as a guardian.
Other millennials are creating estate plans after buying a house. After going through this process, they created a will to include the property within it—so when they pass away, the house will go to a loved one.
Is Estate Planning Only for Rich Millennials?
It is a common misconception that only wealthy millennials, or that wealthy individuals in general, should have an estate plan in place. In fact, over two-thirds of millennials who are creating estate plans have a net worth of $500,000 or less. This is because there is more to estate planning than just creating a will and leaving assets to loved ones. Estate plans often include other critical documents like financial and medical power of attorney designations, HIPAA authorization forms, and discussion of end-of-life arrangements. These are important documents that can help a loved one’s decision-making process if the person cannot make choices for themselves in the future.
Regardless of income, an experienced estate planning attorney can help to create a will, power of attorney, and other critical documents for any millennial. Contacting an attorney as soon as possible can ensure that regardless of what happens in the future, the individual and their family are taken care of.
Do You Need the Assistance of a Texas Estate Planning Attorney?
If you or a loved one needs assistance creating an estate plan, reach out to the experienced Houston estate planning attorneys at McCulloch & Miller, PLLC. With decades of experience drafting estate plans, our attorneys are up to date on recent estate planning trends and can advise you on the trends that would work best according to your situation. Estate planning should not be overwhelming or complicated—we are here to make the process smooth and easy. To schedule a free, initial consultation and to speak with one of our knowledgeable attorneys, give us a call today at 713-333-8900.