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To the Millennials: The Time to Plan Is Now

As a millennial, you are making significant contributions to the workforce and positively impacting the world around you. We understand that your concerns may differ from those of other generations, and we are here to help you craft an estate plan that protects your future and addresses what matters most to you. Here are some essential steps to ensure you have a comprehensive estate plan.




Choose Your Key Decision-Makers

If you become incapacitated due to a severe injury, dementia, or a stroke, and can no longer manage your affairs, no one can step in for you without court intervention unless you have legally designated someone to act on your behalf. By law, no one can automatically make your medical decisions or manage your finances—not even your parents or spouse.


If the court is required to appoint someone to make decisions for you and you are unmarried, state law generally prioritizes your immediate family members over a significant other or friend. You need the right legal tools to ensure that you choose who will make these important decisions.

Appoint an agent under a financial power of attorney to manage financial decisions and a medical power of attorney for healthcare decisions. These are two different roles, and you can select the same or different people based on skill sets or other considerations.


Fill Out Employment Forms Appropriately

According to a 2023 article analyzing U.S. Census Bureau data, millennials are the largest group in the workforce at 49.5 million people. Many jobs come with employer-provided life insurance and retirement plans, both vital financial tools. Ensure that beneficiary designations for these tools are completed correctly to avoid probate and to make sure your loved ones receive the benefits without hassle.


Naming a Life Insurance Beneficiary

Leaving a lump sum to a loved one can be simple, but it can also be vulnerable to creditors, divorcing spouses, or lawsuits. Consider naming a trust as the beneficiary to protect the inheritance. The trustee can use the money according to your instructions, adding a layer of protection.


Retirement Beneficiary Options

  • Spouse: Naming your spouse as the primary beneficiary of a retirement account allows for a spousal rollover, providing additional asset protection.

  • Minor Child: A minor child can take required minimum distributions (RMDs) until 21, then withdraw the remaining balance within 10 years.

  • Adult Loved One: An adult must receive the entire account within 10 years unless another exception applies.

  • Trust: Naming a trust as the beneficiary can protect the funds and ensure they are used as you wish.


Charitable Beneficiaries

Naming a charity as the beneficiary of your life insurance or retirement account can leave a philanthropic mark and reduce estate taxes.


Unmarried Planning

According to Statista, only 44% of millennials were married between ages 23 and 38 in 2020. Without a proactive estate plan, your money and property will be distributed according to state rules, prioritizing family members over significant others. An estate plan allows you to provide for your loved ones according to your wishes.


Don’t Forget Your Pets

Millennials make up the largest percentage of current pet owners. It’s crucial to address your pets in your estate plan. Choose a caregiver, possibly set aside funds for their care, and consider providing compensation to the caregiver.


Now Is the Time to Plan

Planning for the future can be daunting, but it's essential to ensure that you and your loved ones are prepared. Our team is here to guide you through these important considerations, providing peace of mind. Contact The Law Office of S.K. Bridges to schedule your appointment today.


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