Estate Planning as a Financial Strategy for Millennial Families
If you are a young family, estate planning may not be the first thing on your mind. After all, you have many other financial obligations to worry about such as paying off student loans, saving for a down payment on a house, and raising children. However, it is important to consider estate planning as part of your overall financial strategy.
This article will explore the fundamentals of estate planning and its critical role in the financial strategy of millennials. From organizing your digital assets to managing student loan debt, we will dive into the specific considerations that young families should keep in mind when creating an estate plan.
Article Summary:
- Understanding Estate Planning
- Why Millennials Need Estate Planning
- Choosing the Right Estate Planning Lawyer
- Digital Assets and Estate Planning for the Tech-Savvy Generation
- Navigating Non-Traditional Family Structures in Estate Planning
- Estate Planning Strategies to Manage Student Loan Debt
- Estate Planning in Wauwatosa and Milwaukee
1. Understanding Estate Planning
Estate planning entails the preparation for the handling and passing on of your assets should you become incapacitated or pass away. It requires making crucial choices regarding the inheritance of your estate, the method of distribution, and appointing someone to oversee your affairs if you’re not in a position to do so. This process can involve drafting a will, setting up trusts, and identifying beneficiaries for retirement savings, life insurance policies, and various other assets.
2. Why Millennials Need Estate Planning
Contrary to popular belief, estate planning is not just for the rich or elderly. It is an essential tool for individuals of all ages, especially millennials who are building their wealth and starting families. Here are some reasons why estate planning is crucial for the younger generation:
- Protecting minor children: Estate planning allows you to appoint guardians for your children in the event of your incapacity or death. This ensures that their care and upbringing will be in line with your wishes.
- Managing digital assets: With the rise of technology, millennials have a significant amount of valuable digital assets such as online accounts, cryptocurrency, and social media profiles. Estate planning allows you to designate who will have access to these assets and how they should be managed.
- Avoiding intestacy laws: If you die without a will or estate plan, your assets will be distributed according to state intestacy laws. This may not align with your wishes and could result in loved ones being left out or receiving assets they may not be equipped to handle.
- Planning for incapacity: Estate planning also includes documents such as a power of attorney and healthcare directive that designate someone to make important decisions on your behalf if you become incapacitated. Without these, your loved ones may have to go through the costly and time-consuming process of seeking guardianship.
3. Choosing the Right Estate Planning Lawyer
Estate planning involves complex legal, financial, and tax implications. Therefore, it is essential to work with an experienced estate planning lawyer who can guide you through the process and ensure your wishes are accurately documented.
When choosing an attorney, consider their experience in estate planning, their specialization in relevant areas such as trusts and taxes, and their approach to communication and transparency. Make sure to discuss their fee structure upfront and clarify any questions you may have before making a decision.
4. Digital Assets and Estate Planning for the Tech-Savvy Generation
As mentioned earlier, estate planning also involves managing digital assets. This includes everything from social media profiles to online banking accounts. This is important for millennials because much of their wealth is tied to their digital presence.
When creating an estate plan, be sure to make a comprehensive list of your digital assets and include instructions on how you want them managed or transferred. It is also important to regularly update this list as your assets may change over time.
5. Navigating Non-Traditional Family Structures in Estate Planning
In today’s society, the definition of family extends far beyond traditional boundaries, encompassing unmarried partners, blended families, same-sex couples, and other non-traditional structures. For millennial families, navigating estate planning within these diverse dynamics presents both unique challenges and opportunities.
It’s crucial to ensure that your estate plan reflects the reality of your family’s structure, safeguarding the rights and futures of all members, regardless of their legal or biological ties to you. This includes specifying guardians for minor children from previous relationships, protecting the inheritance rights of stepchildren, or ensuring that unmarried partners have the necessary legal authority to make decisions on each other’s behalf.
6. Estate Planning Strategies to Manage Student Loan Debt
Millennials are known for carrying significant amounts of student loan debt. This can pose a unique challenge when it comes to estate planning, as this debt may be inherited by loved ones if not properly addressed.
One strategy to manage student loan debt in your estate plan is through life insurance policies. Naming a beneficiary for your life insurance policy allows them to receive the death benefit tax-free and use it to pay off your outstanding loans. Additionally, setting up a trust can also provide structure for how your assets will be used to pay off debts after your passing.
7. Estate Planning in Wauwatosa and Milwaukee
As many millennials choose to settle down in places like Wauwatosa and Milwaukee, it’s essential to understand the unique estate planning considerations for these locations. For example, Wisconsin has specific laws regarding spousal inheritance rights and community property that may impact your estate plan. Additionally, understanding local tax laws can help minimize potential tax implications on your assets.
For a professional estate planning lawyer in Wauwatosa and Milwaukee, consider Margerie Law. With a focus on providing personalized, comprehensive, and transparent estate planning services to young families, Margerie Law can help you navigate the complexities of estate planning with confidence. Contact us today to schedule a free consultation and begin securing your family’s future.
By Paul Margerie, Owner of Margerie Law
Paul Margerie of Margerie Law is a knowledgeable and experienced estate planning attorney based in Wauwatosa, WI. With years of experience helping families and individuals with their estate plans, he offers a gentle touch that puts his clients at ease. He understands the sensitive nature of this work and ensures that all details are taken care of with precision and accuracy. He strives to help each client achieve peace of mind that their future is protected by providing personalized advice and creating tailor-made solutions that fit their individual needs.
