In the past, Californians and people throughout the United States might have been under the impression that creating an estate plan was something that could wait until they were older and more established. The lack of urgency often resulted in confusion as to how a person’s assets were to be distributed, what type of care they would receive if they were incapacitated and how to handle various personal issues if they were unable to do so themselves. In recent years, however, a growing number of younger people – notably millennials – is understanding the importance of estate planning. Those who are unsure of its usefulness may want to take the lead of others who have created an estate plan and consider their options.
Study shows more millennials are creating an estate plan
Events over the past three years gave millennials a new perspective on estate planning. A recent study comprised of nearly 23,000 people ages 25 to 44 showed that three of four participants reported that they had completed a will. Among the stated reasons were concerns about children, their health care and their pets. One-third said it was because they recently had a child. A loved one’s death was a fundamental factor for 11%. Nine percent said they did so because they had recently purchased a home.
Fewer than one in five created a trust. There is a combination of other factors involved in this spike in millennials moving forward with estate planning. The combination of young children and parents who are aging make it a priority to ensure these issues are addressed. Wealth is secondary to having a basic plan. In the study, 71% had a net worth that was half-a-million dollars or less. Sixteen percent had a net worth that surpassed $1 million. Despite this newfound attention to estate planning, the facts show that a majority of Americans have not created an estate plan at all.
The value of estate planning should not be understated
Regardless of a person’s age, family situation and financial station, it is important to know the value of an estate plan. Estate planning does not need to be complicated. Even a basic estate plan can provide coverage for all the various aspects of a person’s life to ensure disputes, disagreements and confusion is kept to a minimum. Those who have substantial assets, a business, a growing family and other areas of concern should know what options there are. Whether it is a simple will, a trust, incapacity planning or asset protection, having assistance can give advice and strategies with an estate plan.