Fortune

Nov 18, 2024

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Why millennials and Gen Z should have a basic estate plan

Though “estate planning” may bring to mind visions of rich families squabbling over the ancestral silver, it isn’t just for the wealthy or older people, financial planners say. It can be beneficial for families with more modest assets and 20- and 30-somethings, as well.

 

The first time many people start considering creating an estate plan—which can include something as simple as crafting a will, to more complex maneuvers like establishing irrevocable trusts—is when they have children. That’s a good time to do so, says Jessica Majeski, wealth management advisor at Northwestern Mutual. But it can also make sense to do it sooner.

 

In particular, it makes sense for all adults to have a durable power of attorney and healthcare power of attorney drafted. These legal documents allow an individual to appoint another person to make financial and medical decisions, respectively, on her behalf if she becomes incapacitated or is otherwise unable to do so.

 

For those without children or a spouse, Gene Farrell, CEO of estate planning software Vanilla, says to consider extended family members, friends, community organizations, or causes you care about when drafting a will.

 

“Just because you don’t have children doesn’t mean you can’t have impact,” he says. “Many charities are thrilled to have benefactors name them in their estate plans, but a lot of times people just don’t think about it.”

 

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Read more: Why millennials and Gen Z should have a basic estate plan

[Fortune, Alicia Adamczyk]