Millennials, like all adults, should plan for the unexpected. Youth is not a reason to avoid Estate Planning. However, Millennials present an interesting Estate Planning challenge – planning for inheritance and death simultaneously.
The Boomer generation is poised to transfer more wealth than ever before ($30 trillion over the next 30 years) and the Millennials will be the recipients of the lion’s share. This presents two significant issues: (1) Dramatic increases in net worth, and (2) family business succession.
The first thing to do is to sit down and think about the details: who should be your executor, who should be your beneficiaries (spouse? children? siblings? friends? charity?). Next, develop a plan.
Planning for Millennials normally follows a life event. Some are happy – like marriage, the birth of a child, getting a great new job. Some are not – divorce, the death of a loved one, or losing a job.
The inheritance aspect can be more difficult to plan since, most often, beneficiaries don’t normally know the details of what they will eventually inherit. Proper planning can address unknowns and can be amended to reflect changes in circumstances.