Estate Planning for Millennials
If you are a millennial, creating an estate plan is probably not at the top of your to-do list. You are not alone, as many of those who are in their 20’s and 30’s believe that they are too young to think about estate planning. The truth, however, is that estate planning is not just meant for aging individuals.
If there is one thing that the Covid-19 crisis has taught us, it is that anyone’s life could be turned upside down due to factors that are beyond human control. With this in mind, it’s essential for you to have an estate plan in place so that your loved ones know what to do in the event of your incapacitation or death and inherit what is rightfully theirs without any intervention from the government.
Here are four key factors that millennials should consider while creating an estate plan:
One of the primary goals of estate planning is to make sure you have someone who can make important decisions on your behalf – in case you are not able to do so due to physical or mental incapacitation.
First, you need to create a durable power of attorney and designate someone who can handle your finances and make decisions on your behalf. Second, you need to create an advance directive and specify your preferences regarding medical treatment and designate someone who can make medical decisions on your behalf.
You can designate the same person to make financial as well as medical decisions on your behalf in the event of your incapacitation. At the same time, it’s a good idea to designate a second person, who can be authorized to make decisions on your behalf in case the original designee is unable or unwilling to perform their duties.
If you and your spouse were to die or become physically or mentally incapacitated due to an accident, what will happen to your children? Similarly, if neither of you can take care of your children due to unforeseen circumstances, who will take care of your children?
As unlikely as it might seem and as unpleasant as it might be for you to think about, it is a possibility you should plan for.
In the absence of a designated guardian, the court will be forced to step in and choose a guardian for your children. The problem with such an arrangement is that the person chosen by the court might not be someone you would have wanted to raise your children. Stemming from this, it’s critical to designate someone you trust as the guardian for your children as part of your overall estate plan.
It’s necessary to understand that guardianship is not specific to minor children alone. You can designate guardians to care for your aged parents, dependents with special needs, and pets as well.
Asset Management and Distribution
If you have inherited or acquired a significant amount of assets, it is important to make sure they are managed properly or divided up and distributed among your loved ones as per your wishes. One of the best ways to do it is to set up a trust.
Management of Digital Assets
As a millennial, you grew up in the digital age, and you likely own a significant number of digital assets – from financial accounts to social media accounts to photographs and videos that are stored in the cloud.
In the event of your incapacitation or death, your loved ones should not only be able to access these assets, but they should also know what to do with them. For that, you need to make a list of your digital assets, include them in your estate plan, and specify who should manage your accounts or access your data in the event of your incapacitation or death.
If you own valuable assets like revenue-generating blogs, domain names, or cryptocurrencies, it is even more important to include them in your estate plan, as you need to make sure your loved ones can access them and know what to do with them in your absence.
Choose the Right Estate Planning Attorneys in Louisville, Kentucky
At John H. Ruby & Associates, we are committed to helping people plan for their future. We offer personalized estate planning services for clients from all backgrounds. We can create an estate plan that takes your needs, preferences, and financial goals into account and make sure your assets are managed, divided, and distributed exactly as per your instructions after you are gone.
To find out how we can help you with your estate plan, call our firm today at 502-895-2626 or contact us online to schedule a free consultation with one of our experienced Kentucky estate planning attorneys.