Millenial Estate Planning

Kickstart the Millennial Estate Planning Process

The One Thing You Can Do TODAY to Start Your Millennial Estate Planning Journey

Now that you’re entering middle age, your days are likely packed with the dual responsibilities of caring for your children and aging parents. Unfortunately, this gives you very little time to think about yourself—and making an estate plan might not be high on your list. Let’s unpack the biggest thing you can do to make the rest of the millennial estate planning process a breeze: making a Will.

TABLE OF CONTENTS

Last Will and Testament: The Crucial First Step in Estate Planning

Estate planning should begin with your Last Will and Testament, the guiding instructional document and backbone of your plan. Shockingly, 62% of Trust & Will survey respondents aged 25 to 44 admitted they don’t have a Will or Trust in place. If millennials don’t have the first step in estate planning completed, odds are good they’re leaving out some (or most likely all) of the rest.

Why Estate Planning Is Important for Millennials

If you die without a Will, your property is given away according to the state’s intestacy laws. These laws may run contrary to your wishes and cause your loved ones undue stress, hardship, or costly legal battles.

A Will is a legally-binding document that leaves no doubt about your intentions. It outlines your wishes for distributing your assets—such as personal property, real estate, and bank accounts—after your passing. It can also designate a legal guardian for your minor children. When you create a Will, you help ensure that everything dear to you in this world will be in good hands when you leave it.

Minimum Requirements to Make a Will Legal in Florida

Certain legal requirements must be met for a Will to be valid in Florida. At the bare minimum, a valid Florida Will must be:

  • Created by someone at least 18 years old
  • Created by someone of sound mind, meaning you understand what you are doing when creating the will
  • A written document (oral wills are not valid in Florida)
  • Signed by you or someone who signed it on your behalf in your presence
  • Signed before at least two witnesses who are not beneficiaries of the will

These requirements ensure your Will is legally binding and that your wishes will be respected, allowing you to rest easy.

Can I Really Do This Today?

You’re my age, so I’m guessing you’re busy. But like me, you probably have a few precious extra minutes in the car—after lunch, before work, between pickup and drop-off—that you’d spend idly scrolling on your phone. Instead, pull up a note-taking app (or a pad and paper for old-school security) and create the following headers to list your:

  • Executor/Personal Representative. Designate a trusted individual to execute the provisions in your will. This person will manage your estate, pay off debts, and distribute your assets.
  • Beneficiaries. Clearly identify each individual who will inherit your property. This can include family members, friends, or even charitable organizations.
  • Assets. Broadly list your significant assets, including physical property (real estate, houses, land), bank accounts (checking, savings, investment accounts), trading accounts (stocks, bonds), retirement accounts (401(k), IRA), life insurance policies, and personal items of value (vehicles, antiques, jewelry). Keep it general: bank names are fine, no need to list account numbers. You can always go into more detail later.
  • Guardianship. If you have minor children, name the guardians who will care for them in your absence. Make a list of potential candidates in order of preference to discuss with your partner before finalizing your plan.
  • Special Instructions. Include any specific wishes regarding your funeral arrangements or how you want your assets divided.

Congratulations! You just completed three of the five requirements of a legally binding Will while waiting for curbside delivery. Feels good, doesn’t it?

When Should You Start Estate Planning?

While you may feel young and invincible, planning for the unexpected is vital. Life is unpredictable, and many millennials have estate planning concerns previous generations never dreamed of. Here’s why it’s crucial to start now:

  • Inherited Wealth. You may not have much to leave your children now, but your parents could leave you a tidy sum that will go to your heirs. Are they equipped to manage a large inheritance without your help? 
  • Investments and Benefits. Millennials are more financially aware and more likely to have multiple employers, increasing the number of investment and savings accounts. Tracking these now can help you devise the best structure for your estate plan.
  • Debt. Millennials often carry significant liabilities that can affect the value of their estates, such as student loans, credit card balances, or mortgages.
  • Family Dynamics. Many millennials have children, partners, or blended families. A Will is essential for ensuring your children are cared for according to your wishes. 
  • Health Problems. Life is unpredictable. If you are suddenly incapacitated, your Will can provide instructions for end-of-life care and select someone to make medical decisions for you.
  • Digital Assets. In today’s digital age, you may have significant online assets (like social media accounts or cryptocurrencies). A will can specify how these should be handled after your death.

There’s an App for That, Right?

The latest craze of AI, chat bots, and celebrities/athletes hawking one-size-fits-all preparation of estate planning documents is a modern version of snake oil. Here are three reasons to avoid these tools like the plague.

  1. If you’ve ever customized anything in your life, you’ll both need and want to customize your estate planning documents. Who uses default settings for anything? Re-read the above areas that a will covers. Could you reduce your entire plan to a few sentences?
  2. AI is known to make errors in legal drafting. Indeed, lawyers using AI to draft legal documents have been sanctioned (penalized and fined) for not disclosing that a bot was involved in the creation of the documents. What’s worse is that the information in the AI created documents was WRONG!
  3. Dirty industry secret – the process for actually using a will is called “admission to probate”. In Florida, attorneys who file probate cases on behalf of an estate are entitled to charge their fees based on the total value of assets in the estate. If you’re using AI, a chat bot, or one of these document creation services, the low or no price you’re paying will 100% result in your loved ones having to clean up the mess and pay a significant amount of money for the privilege.

We can guide you safely through millennial estate planning concerns and ensure your final Will meets all Florida legal requirements. Email Yolofsky Law at [email protected] today or schedule a 15-minute call to get the peace of mind you didn’t know you needed.