However, estate planning is just as crucial for younger generations. Whether you’re a millennial buying your first home or a Gen Z professional with savings, now is the time to take estate planning seriously.
Why Should Younger People Consider Estate Planning?
Unexpected Life Events: Life is unpredictable, and having a plan in place provides a safety net for your loved ones. Whether it’s a medical emergency, sudden disability, or untimely death, an estate plan ensures that your assets and wishes are handled according to your preferences.
Property and Digital Assets: Younger generations are accumulating property and wealth earlier than before, including digital assets like cryptocurrency, online accounts, and intellectual property. Planning for the management of these assets can prevent future complications.
Student Debt and Financial Responsibilities: While student loans are typically written off upon death, many young people also accumulate other types of debt, such as overdrafts, credit card debt, or personal loans. Estate planning ensures that these financial responsibilities are addressed, and any remaining assets are distributed efficiently to beneficiaries, without additional burdens on your loved ones.
Key Elements of an Estate Plan for Younger Generations
Creating a Will: This foundational document specifies how your assets will be distributed. Even if you don’t have children yet, your will ensures your assets are handled according to your wishes. In the future, it can also designate guardians for any dependents, and outline how you want your money spent, your funeral plans, and any other preferences you may have.
Power of Attorney: A lasting power of attorney (LPA) ensures that someone you trust can make decisions on your behalf if you’re incapacitated. There are 2 types of LPA, health and welfare and property and financial affairs
Healthcare Directives: This allows you to outline your preferences for medical care, ensuring that your wishes are respected even if you’re unable to communicate them.
Beneficiary Designations: Younger generations often have life insurance policies or retirement accounts. Ensure these are up to date and reflect your current wishes to prevent disputes and ensure smooth asset transfer.
Why Start Now?
Duncan Edwards, Estate Planning Adviser at Brunsdon Financial states that “Starting estate planning early allows young people to build a foundation for financial security. It’s not just about death—it’s about preparing for life’s uncertainties, safeguarding assets, and making your intentions clear. The peace of mind that comes with knowing you’ve protected your loved ones is invaluable.”
A Flexible Approach for the Future
Your life, assets, and goals will evolve over time. Starting early means you can regularly update your estate plan as your situation changes—whether that’s a new job, a home purchase, or starting a family. Flexibility is key.
Conclusion
Estate planning is no longer something to delay until later in life. For younger generations, it’s about proactive preparation, ensuring that your wishes are respected, and your loved ones are taken care of, regardless of what the future holds.
