Part 1 of a 2-Part Series
Born between 1981 and 1996, many Millennials identify with distinctiveness. You applaud their ability to walk to the beat of a different drummer. As a result, many members of this generation follow paths and set goals decidedly different from those chosen by previous generations. Highly diverse, better educated, more socially conscious, you await longer to start families than their parents and grandparents. But one thing you have in common with other generational groups is the need for estate planning. In this two-part series, we will cover the reasons why.
Unfortunately, a startling 79% of millennials admit they never created basic estate plans in place. While your needs and goals may vary, nevertheless, estate plans offer important protection for every adult – including you! No one know what the future holds. We set plans in place to not only provide for future needs not only for you but also for your loved ones and pets.
Will and/or Trust
As a millennial, your accumulated wealth may not match that of members of older generations. So, designate your money and property to go to the family members or loved ones you choose in case something happens to you. Without a will or trust, your money and property will pass to the person designated by state law. This may not reflect your wishes. In addition, married Millennials with young children should to take steps to provide for their spouse and children. A trust often most elegantly solves this problem.
If your spouse inherits your money and property outright under a will, and your spouse eventually remarries, your assets could go to the second spouse instead of your children. In addition, the inheritance will be vulnerable to claims made by your spouse’s creditors. A trust can avoid these results by allowing you to choose who receives your property and money, as well as the timing and size of the gifts.
Pet Trust
If you are one of many millennials, especially those who live in large urban areas, who chose either to delay having children or to remain childless, you may have adopted pets that you love and dote upon just as you would a child. Especially if you are single, you should consider a pet trust to provide for your pet’s care if something happens to you. The pet trust can allow you to make arrangements for your pet if you die or are physically unable to care for them yourself. The pet trust can not only specify a caregiver for your pet, it can also provide care instructions and set aside funds sufficient to care for your pet’s needs (medical care, grooming, exercise, etc.). You also have the ability to name an additional person to manage the money you have set aside for your pet, if you would rather have someone other than the caregiver in charge of the money.
Charitable Remainder Trust
Millennials are well known for being socially conscious and wanting to make a positive difference in the world. If you want your money and possessions to support a charitable cause when you pass away, you may be interested in establishing a charitable remainder trust, which enables you to benefit from a stream of income for your own life, with the remaining money in the trust going to a charity you have selected upon your death.
Check back next week to read part 2 in this series about Millennial Estate Planning.
Let Us Help You Prepare for the Future
You may think that estate planning is only for the elderly. However, even if you are young, an estate plan is crucial, regardless of whether you have accumulated much money or property. A properly executed estate plan provides not only for the well-being of your family, loved ones, and pets, but also allows you to put plans in place in case you become ill or are severely injured and cannot make medical and financial decisions for yourself. Call us today to prepare for the future.
About Skvarna Law Firm in Glendora and Upland, California
A skilled attorney can assist with your estate plan. Contact us today to learn about your options (909) 608-7671. We operate offices in Glendora and Upland, California. We provide legal services for individuals living in San Bernardino, Los Angeles, Orange and Riverside Counties. This includes the cities of Upland, Ontario, Rancho Cucamonga, Fontana, Colton, Rialto, Chino, Chino Hills, Glendora, Claremont, Montclair, Pomona, La Verne, San Dimas, Azusa, Covina, West Covina, Diamond Bar, Walnut, La Puente, Corona, Norco & Mira Loma. Visit SkvarnaLaw.com to learn more.
