Demand for Estate Planning Grows for Millennials Caring for Family
Estate planning decisions can be complicated for people of any age. This includes millennials, who have discovered the challenges of estate planning as more of them care for older family members. And unlike previous generations, millennials want to plan differently for the future, according to a recent study by Trust & Will as reported by Advisor News.
“Millennials are building their own families while also caring for their aging parents amid a global health crisis, prompting more caregivers to plan for the future,” Cody Barbo, Founder and CEO of Trust & Will, said in an interview with Advisor News. Barbo added that “millennials are taking the lead on writing wills and establishing trusts to set up their families’ financial health.”
Why are millennials interested in estate planning?
Many people do not have a last will and testament or an estate plan of any kind, according to Barbo. “The majority of American adults still do not have any plan in place,” Barbo said in an interview with Advisor News.
So why are millennials suddenly interested in estate planning? Trust & Will analyzed survey data from 22,850 individuals between the ages of 25 and 44 years old. Based on the survey, Trust & Will reported that millennials recently became interested in estate planning for several reasons:
- 81 percent wanted to specify whether to donate their organs.
- 77 percent of pet owners wanted to designate a pet guardian if necessary.
- 75 percent created an estate plan because they wanted to designate a guardian for their children.
- 57 percent wanted to specify their end-of-life care plans if their “benefits outweigh the burdens.”
- 34 percent decided to create an estate plan after having a child.
- 22 percent decided to create an estate plan because they’re caring for their children and their parents.
How are millennial estate plans different?
The study found that “millennials are flouting certain traditional family norms.” In particular, the Trust & Will study found that millennials “are steering away from tradition to create modern, personalized legacies.”
How are millennial estate plans different? First, many millennials list non-family members as their choice for the guardian for children and/or pets. Many millennials also chose non-family members as the executor of their will, trustee, or as a beneficiary.
In addition, millennials listed more people in their estate plans than previous generations. Specifically, the study found that most millennials list an average of seven people in their estate plans.
As for end-of-life plans, millennials also had different choices compared to previous generations. Nearly 40 percent have completed such health documents. Of those who completed their end-of-life plans, 57 percent only want to receive medical care “if benefits outweigh the burdens.”
Other millennial end-of-life choices include 48 percent choosing cremation, 25 percent choosing a traditional burial and 8 percent electing to donate their body for scientific research. Based on such findings, Trust & Will reported that “millennials are moving away from traditional end-of-life arrangements.”
Talk to an estate planning attorney about your goals
Deciding how to plan for your future can be an overwhelming task. This is why many people might not know what to do when it comes to creating an estate plan. There are many situations that need to be taken into account, including end-of-life decisions and the tax implications of different financial choices.
At the Law Firm of Brown & Jensen, our experienced estate planning lawyers can help you every step of the way. We’re familiar with the state and federal laws that apply to estate plans. As your legal advisor, we can also explain the different taxes that often apply in terms of estate planning. This often includes federal taxes, state taxes, and inheritance taxes.
Learn more about the estate planning options available to you. Contact us today for a free consultation. We have eight offices conveniently located throughout Arizona, including offices in Mesa, Tucson, and Scottsdale.