They will begin a new chapter in their lives with many sharing the same three short-term goals:
- Get a job.
- Pay off student loan debt.
- Move out of their parents’ house as soon as possible.
If you were to ask any new graduates if they have started the process of planning for their estate, you may get a funny look and most likely a response somewhere along the lines of, “Huh, why do I need an estate plan? I don’t own anything.” And with the average college graduate leaving school with over $37,000 in student loans, planning for their estate has probably never crossed their mind. This, however, is a big mistake.
A common misconception from younger generations when it comes to estate planning is that it is only for the elderly and those with many assets. As part of the generational millennial pool, I can say that estate planning doesn’t even cross our minds until we go through a major life event such as getting married, buying a house or having children. Although these are all excellent reasons to have an estate plan, we need to be thinking about our estate plan sooner rather than later. So here are four tips I have on estate planning for millennials – listen up, Gen Y.
Four Tips on Estate Planning for Millennials
By the time you turn 18, you should have considered the following documents:
- Healthcare Power of Attorney
- HIPAA Release (Medical Information)
- Advanced Health Care Directive
- Financial Power of Attorney
Once you turn 18, you are considered an adult in the eyes of the law. Having these documents will allow you to designate a loved one to make medical and end-of-life decisions for you should you be unable to do so. For example, if you were involved in a car accident that put you in a coma and did not have these documents, your family would not be legally able to make these decisions for you. This could result in doctors making decisions that you may not want.
Estate planning for millennials isimportant and not something to be put off until major life events take place. Please consider taking a step in the right direction for your future. The sooner you get started, the sooner you can protect yourself and your family.
