Most Millenials, also known as Gen Y, are always reluctant to think about and plan for their own deaths. After all, no one wants to think about death when they are at the peak of their lives. However, some of life’s truisms hold for every adult regardless of their age or generation. One such truism is the need for an estate plan.
The thought of death is scary, and this is understandable. However, this does not change the fact that you need to think about and address the personal, legal and financial aspects of estate planning as soon as you can.
Here are important estate planning tips every millennial needs to keep in mind.
Financial and medial power of attorneys
Every adult ought to have an elaborate financial and medical power of attorneys. Contrary to the misconception, not all power of attorney documents are the same. An agent you nominate under the financial power of attorney will only act within the specifics of the document. For a Millennial, it is important that you authorize the agent in charge of your financial power of attorney to manage specific assets such as your digital assets, online bank accounts, cryptocurrency and activity memberships. It is unlikely that a generic downloadable power of financial attorney would have provisions for these assets. The same is true of a medical power of attorney. Perhaps you have undergone a cosmetic procedure, it is important that you have this captured in your medical power of attorney.
This is a simple way of protecting your financial assets without the hassle of complex planning. Typically, you can name beneficiaries on accounts such as health savings plans, 401Ks, life insurance policies and investment accounts. It is important that you keep your beneficiary designations up to date to ensure your assets go where you want them to do should you pass on.
No one wants to think about their death, especially during their youthful years. However, there is never a bad time to create an estate plan or take a look at an existing one. A little preparation can give you peace of mind – not only now but for your future, too.