As a millennial, you may have a lot of expenses, including student loans, mortgages, car payments and the like. Creating an estate plan is possibly one of the furthest things from your mind. Nevertheless, it’s essential to start thinking about certain aspects, even if you have limited assets to leave to your Illinois beneficiaries.
Essential estate documents needed
No matter what your age, if you are an adult, having certain estate planning documents is essential. No one plans on dying early in life, but many become incapacitated earlier than they think. Some important documents for millennials are durable powers of attorney for healthcare and financial matters and a living will. These designate who will be responsible for your financial affairs and healthcare decisions if you cannot make them independently. A living will spells out your end-of-life wishes and names a patient advocate to act on your behalf.
Some millennials may also need trusts and wills, depending on whether they have accumulated assets. Those with children should designate a guardian for them if both parents pass away. Other considerations include what to do with your digital assets and who should care for your pets.
Estate plans are fluid
Many people don’t realize that an estate plan is not just a one-time deal. Your life will change, and so must your estate documents. Estate plans should change when you get married, have children, or have other major life events. The good news is once you have embarked on this journey, you will already get peace of mind.
Remember that you can add elements such as trusts and retirement accounts to your plan throughout your life as you accumulate wealth. Reviewing your plan at least every three years to ensure it is relevant is a good idea.