Estate planning is often considered a task for older adults, those who are well-established in their careers, have accumulated assets, and have families to consider. However, millennials, are notorious for putting off estate planning despite its importance. A 2024 study by Trust & Will found that an overwhelming 62% of millennials do not have a Will or Trust. Furthermore, more than half do not know what would happen to their assets if they died without an estate plan. Here are twelve reasons why millennials might be delaying this critical task
1. Feeling Invincible
Many millennials perceive estate planning as something for older generations, leading them to believe they have plenty of time to address it later. Millennials are often referred to as the ‘sandwich generation’, meaning that they are often left caring for both their young children and their aging parents. With a greater emphasis on their parent’s care, many millennials are neglecting to protect their own assets.
2. Prioritizing Immediate Needs
Millennials often focus on paying off student loans, saving for a home, or starting a family, relegating estate planning to the back burner. Due to high inflation, much of millennial’s focus is on making ends meet today, with little forward-thinking.
3. Financial Insecurity
With the burden of student loan debt, stagnant wages, and rising living costs, many millennials feel financially unstable, making them hesitant to invest in estate planning. Many millennials question whether they have enough saved to actually warrant undergoing the estate planning process.
4. Digital Assets Complexity
Unlike previous generations, millennials have significant digital footprints, including social media accounts, cryptocurrency, and online banking, which can complicate estate planning.
5. Lack of Knowledge
Estate planning can be complex, and young adults may not fully understand its importance or know where to start. Reaching out to a lawyer is a first good step to start the estate planning process.
6. Changing Family Dynamics
Millennials are more likely to delay marriage and starting families, leading to uncertainty about who should be included in their estate plans.
7. Distrust in Institutions
Some millennials have a general distrust of financial institutions and may be skeptical about the integrity of financial advisors.
8. Fear of Mortality
Confronting mortality is uncomfortable for many people, and millennials are no exception. Avoiding estate planning may be a way to sidestep thoughts of mortality and aging.
9. Preference for Experiences Over Assets
Millennials often prioritize experiences over material possessions, leading them to underestimate the importance of protecting their accumulated assets.
10. Delaying Due to Perceived Complexity
The legal jargon and complexities involved in estate planning can be overwhelming, leading millennials to procrastinate on taking action.
11. Optimism Bias
Many millennials have a positive outlook on the future and may believe that they will have more time and resources to address this necessary task later in life.
12. Misconceptions About Cost
Millennials may overestimate the cost of estate planning, assuming it is an expense they cannot afford at their current stage in life. Most estate planning costs range from $1,000-$5,000 but can vary based on the estate’s complexity.
Tackling Estate Planning
Despite these reasons for procrastination, estate planning is crucial for individuals of all ages, including millennials. It ensures that their assets are distributed according to their wishes, minimizes tax liabilities, and provides protection for themselves and their loved ones in the event of incapacity or death.
Why You Shouldn’t Delay Estate Planning
Millennials who have been delaying estate planning should consider seeking guidance from financial advisors or estate planning professionals to navigate the process and gain peace of mind knowing their affairs are in order. By addressing estate planning early, millennials can safeguard their legacy and ensure their loved ones are taken care of according to their wishes.
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