Over the years, Millennials have brandished headlines for a multitude of reasons—whether it’s claims they are technically savvy or that they have an affinity for avocado toast, the digital generation is very familiar with being in the news. Now, Millennials are in the spotlight again for embracing another cornerstone of adulthood by writing their wills and/or establishing a comprehensive, integrated, customized estate plan. Estate planning professionals and financial advisors have seen a drastic increase in millennial clientele during 2020-2021 thanks to COVID-19 and other economic factors.
General Unease Surrounding High Costs and COVID-19
The rise of millennials considering their mortality is even more evident if we look at the hard numbers. Caring.com, which is a senior-care referral service, released a report that claims 27% of people aged 18 to 34 years old have a will established. This is a stark contrast to the 2019 figures where only 18% percent of people in that same age range had drafted up a will. Millennials, especially those with young children, recognize that COVID-19 and its various variants will likely pose a risk for themselves and their families well into the future.
Another driving factor for millennials who wish to set up their estate plan is economic uncertainty. Millennials are not unfamiliar with historic economic calamity as they graduated high school in the late 2000s when the real estate market had crumbled, but they are now confronting high inflation costs for the very first time. The Growth Consumer Price Index, a primary measure of inflation, has been steadily rising for months and is close to its highest recorded level since 1999. The ambiguity of not knowing what may happen next financially is causing many millennials to act on their estate plans.
These Conversations Are Hard—But Important
Prior to the pandemic, many millennials never considered creating a will or living trust as well as establishing other important documents such as a durable financial power of attorney and an Advance Health Care Directive. They understood the roles these documents had but did not feel any feel pressure to complete them any time soon as they were young and childless. Once the pandemic hit, millennials began to drastically change their tune.
Interested in Estate Planning? Here Are Your Options
According to various statistics by Gallup, under half of all American citizens have a will at just 46%. The majority of these statistics, however, are peopled aged 65 and older. Many young people are put off by estate planning because they consider it to be labor-intensive, expensive, and the process forces them to address difficult questions..
The cost surrounding a persons’ estate plan is dependent on several factors including the number and nature of the estate’s assets, the dynamics within the family, how vulnerable these assets may be to creditors, the individual’s long-term care plan, and the jurisdiction in which it’s being prepared just to name a few.
Without a Living Trust, Probate Can Be a Nightmare
Those who die without a living trust may have their estates subject to probate. l. Depending on how complex and disputed the estate is, the process could take years as well as cost the decedent’s family thousands and thousands of dollars in attorney’s fees.
Not having an estate plan can be a catastrophe in some situations. For example, beneficiaries with special needs who rely on government benefits may lose them if they inherit funds without utilizing a supplemental needs trust. Issues such as these can be appropriately addressed if the decedent had set up an estate plan using the proper vehicles.
If you’re interested in speaking with an experienced California estate planning lawyer about your legal options, call Botti & Morison Estate Planning Attorneys, Ltd. at (877) 585-1885. Both Chris Botti and Paul Morison have decades of experience helping individuals and families set up comprehensive, effective and customizable estate plans. Botti & Morison Estate Planning Attorneys, Ltd. has several locations in the state of California including Ventura, Valencia, Bakersfield, Westlake Village, San Luis Obispo, and Santa Barbara.