When it comes to legal issues that millennials probably have not thought about, estate planning is almost certainly chief amongst them. Young people don’t really give much thought to the idea of dying or becoming incapacitated, and naturally don’t really consider estate planning something they need to do. But every capable adult, regardless of how young, needs an estate plan in place. Further, there are several issues that are more common to millennials than other age groups for which estate planning can provide specific benefits. So, today, let’s take a look at some estate planning issues that millennials need if they haven’t already done so.
Millennials and Incapacity Planning
Young people are far less likely to die, suffer serious illnesses, or become incapacitated when compared to the elderly. Yet there are groups of young people who are much more likely to become incapacitated or die then others.
For example, if you are young person who owns a motorcycle, your chances of being significantly injured or killed in an accident are much higher than those who drive passenger cars or light trucks. Similarly, should you engage in other risky behaviors, the chances that you might become incapacitated or die are much higher when compared to others who don’t engage in the same activities.
For millennials engaged in such high-risk activities, having an incapacity plan is essential. Your plan will allow you to control what happens to you should you lose your ability to make decisions, and the plan will also give you the ability to name representatives that will make choices while you are unable to do so.
Millennials and Student Loan Debt
If you have to take out private student loans to attend college, vocational school, or any other educational institution, you will need to create an estate plan that addresses this important issue. Should you die, it could fall upon your loans’ cosigner to retain the remainder of your loan even if that cosigner never used a loan to attend college. This can be a significant problem, but it’s also one you can avoid by taking precautionary steps.
For millennials with private student loan debt, acquiring the appropriate amount of life insurance is often an excellent option. As long as you have enough insurance to cover the remaining outstanding balance on your student loans, you can use the insurance benefit to repay the loans after you die.
Millennials and Children
If you are a young person who has a child, your need for an estate plan is much greater than your childless peers. Your estate plan will need to address what happens to your child in the event you are no longer able to care for him or her, as well as a host of other issues that you may have not thought about. If you have a child and have not yet crafted an estate plan, you need to talk to an attorney as soon as possible.