It’s Never Too Early to Start Planning
First comes love, then comes marriage, then comes planning for your future together. And between buying a house and building a family, planning your financial future will be a topic you and your spouse won’t want to forget! We’ve teamed up with our friends at Bestow to help you navigate adulthood. What’s an estate? It’s simply all the things that an individual owns and comprising of their net worth at any time. We’re breaking down the ultimate guide to estate planning for millennials!
Why Do Millennials Need an Estate Plan?
You might be asking yourself the question “why do I need an estate plan?”. Contrary to common belief your estate is much more than simply your material belongings. An estate covers just about every financial aspect of your life, making it a pretty important detail to have for the future.
Give Your Partner Legal Power
In the event of your unexpected passing or hospitalization, it’s important to consider now who’d you like to give legal power to. You might want to give your spouse, a parent, an unmarried partner, or someone else you trust this responsibility in the case you are unable to make decisions yourself. When estate planning, you’ll be able to decide if this individual will have medical power of attorney and or financial power of attorney.
Protect your Digital Assets
Something many millennials will have to consider now when estate planning is the process of protecting all their digital assets. Your digital assets might include personal websites, social media accounts, and any of your saved photos and videos you’ve captured throughout your life. When you plan your estate, you’ll be able to compile all your account information in a secure place.
Your Children Are Likely Minors
When planning for the future, you should always consider those who will be impacted the most from your passing. If you currently have children, are expecting, or plan on having kids in the future, you should make plans to ensure your children are taken care of. Think about who you would trust to take guardianship of your youngsters and include them in your estate plans.
You’re Capable Now
There’s no telling what the future may hold which is why you should always be prepared. Planning now while you are in good health will ensure that your loved ones are covered, and your assets are handed over to those you trust.
What Does an Estate Plan Include?
Photo: @sammisheaphotography
Now that we’ve covered why it’s important to have an estate, it’s time to walk you through some of the items your plan might include. It’s important to remember that everyone is different and because of that no two estate plans will look alike. However, there are a few select documents and items that almost every estate has.
Last Will & Testament
The first thing you’ll want to include is a last will and testament. This is an in-depth look at what will happen to your estate when you pass away. More specifically this will dictate where your assets including your finances, house, car, and material belongings etc. will go.
Living Will
When you are unable to make decisions for yourself, a living will come into play. Different from a last will & testament, a living will details your wishes should you become incapacitated. This would include your designated medical power of attorney and any other final requests you’d like.
Beneficiary & Guardian Designations
Another important aspect of your estate will be your beneficiary and guardian designations. Your beneficiaries are the individuals that you will designated to receive your financial and or material assets. For individuals with children, guardian designations are the individuals you will select to help provide and care for your children while under 18. These could be a spouse, a parent, or a close friend. Whomever you decide to fill these roles in your plan, makes sure these are people you trust will take care of things after your passing.
Life Insurance Documents
To ensure your family is supported financially in the case of unexpected events it’s crucial to include your life insurance information in your estate plan. Having plans in place for those you leave behind will ensure they are protected. Haven’t thought of getting life insurance yet? No worries! Bestow makes it applying for life insurance quick and easy! Get a quote right now from your phone or computer.
3 Essential Documents for Building a Healthy Estate
Like mentioned previously, no two estate plans look the same, but there are some crucial documents you should include in order to be effective!
Health Care Power of Attorney
Your health care power of attorney will be the individual you choose to make all the important medical decisions in the event you are unconscious, in a coma, or even on life support. It’s important to select an individual you trust and believe will understand what your wishes would be in such an event.
Springing Power of Attorney
A springing power of attorney will be able to make financial decisions once certain criteria (dictated by you) is met. This might include events such as being incapacitated, mentally unable, or even deployed overseas in the military.
HIPPA Release
A HIPPA, or Health Insurance Portability and Accountability Act, release gives access to medical professionals to share your personal information with. In most cases, individuals typically include their spouse, parents, siblings along with any other close family and friends.
Tips for Millennials Planning an Estate
Photo: @bemirophotography
Use the below lists to help keep you on track and plan an effective and thorough estate.
Documents for Estate Planning
- HIPAA release
- Springing power of attorney choice
- Health care power of attorney choice
- Living will
- Any healthcare documents
- Business documents (If you have any)
- Beneficiary choices
- Letter of intent
- Guardian choices
Take Inventory of Your Assets
- Checking account
- Savings account
- Stocks
- Retirement funds
- Life insurance
- Small personal belongings
- Digital assets
- Family heirlooms
- Automobiles
Power of Attorney Considerations
- Level of trust
- Location of the person (closer is better)
- Their age and life experience
- The person’s qualifications
- Family dynamics
Now that we’ve given you tips on estate planning for millennials, like yourself, it’s time to get started! Head to Bestow to explore next steps when applying for term life insurance!
Featured image by: @jacqueophoto
T/C’s:
Life insurance quotes provided by Bestow Agency, LLC dba Bestow Insurance Services in CA, who is the licensed agent. Term Life Insurance Policies offered by Bestow are issued on policy form LS181 and LS182, or state version including all applicable endorsements and riders, by North American Company for Life and Health Insurance®, Administrative Office, One Sammons Plaza, Sioux Falls, SD 57193. Products or issues ages may not be available in all jurisdictions. Limitations or restrictions may apply. Not available in New York. Our application asks about your lifestyle and health to avoid requiring a medical exam.
