Millennials are typically defined as someone born between 1980 and 2000 – so they might be aged anywhere between 20 and 40 years old. But there is not typical millennial – they might still be college students or parents who’ve been working for over 15 years. But millennials typically do have a lot of plans – and probably none of those plans is an estate plan. Many millennials may equate having an estate plan with having a will – and all millennials can protect their loved ones by having a will or trust. But there are many more aspects to an estate plan than having a will.
1. Medical Decision If They Become Seriously Ill or Incapacitated
If a millennial becomes ill and they aren’t married, who’s going to make medical decisions? A medical power of attorney allows your child to name a parent as their agent to make health care decisions if they are unable to make and communicate decisions at a later date, including withholding or withdrawal of life-sustaining procedures. The Health Care POA also allows the agent to choose whether to donate organs and to make burial arrangements.
2. Financial Decisions If They Become Seriously Ill or Incapacitated
If a millennial becomes ill, who’s going to pay their bills? A durable power of attorney lasts indefinitely. In most cases, a durable power of attorney (DPOA) is used to allow the designated person – such as a parent – to handle affairs in a specific area of a person’s life, such as in financial or health matters if you become incapacitated.
3. Beneficiary Designations
Most millennials who are working have a life insurance policy, a bank account and a 401(k). They may own a car or a condo or house. Who is going to inherit their assets if they die? A will or trust indicates who you’re leaving your assets to, but many policies need beneficiary designations.
4. Student Debt
Millennials are notoriously saddled with student loan debt. Depending on whether you have a federal student loan or a private student loan, your death will impact what happens to your student loan debt. A life insurance policy in the amount of the student loan debt still owed would provide funds to pay back the balance owed on your student debt and keep your estate solvent.
In Illinois, concerned pet owners can now set aside funds for the care of their animals, and can designate a trustee to manage the fund for the care, support and medical needs of their pets. They also can name the physical custodian of their pet.
Estate planning is not something most millennials have experience with – but millennials need an estate plan. A knowledgeable estate planning attorney can help you ensure you are protected if you become ill and your assets are distributed how you want. For help setting up a will, trust and other estate planning assistance, contact the experienced estate planning attorneys at Estate and Probate Legal Group at 630-800-0112.