Many of today’s 20 and 30 somethings (“Millennials”) are either unemployed or just recently employed, and due to financial concerns may still be living with their parents or roommates. Coupled with the general trend of having children later in life, it is likely that many Millennials either do not have children or have only started to grow their families. Since most people consider forming an estate plan only after they have amassed some assets (i.e. a savings, owning real estate, retirement plans) or after having children, it is highly unlikely that this population has even thought about estate planning. However, even for the textbook Millennial, it is never too early to start planning.
Most commonly, people think of estate planning as writing a Will. An estate plan actually consists of a number of documents including a Will, Trust(s), Living Will, and Powers of Attorney, each of which performs important tasks (for more information please click here). A Millennial with no children and few assets may not have a need for all of these documents but we recommend focusing on a few essential estate planning documents for now: Powers of Attorney and possibly a Will.
Powers of Attorney: After you turn 18, your parents no longer have a say in your medical treatment and may not have access to your bank account to pay your bills or complete financial transactions that you started (i.e. buying a house, a car, etc.). In the event of an accident that leaves you unable to make decisions for yourself, your parents or a loved one would have to go to court and ask for the authority to step in on your behalf. Then there is no guarantee that the person you trust most and who knows you the best will end up making decisions for you. The best way to avoid these problems and to plan for the unexpected is to have a Power of Attorney for Health Care and a Power of Attorney for Property. These legal documents name specific and trusted people as “agents” to make decisions for you, based on your wishes, when you are unable to.
Will: The state in which you live has a plan in place should you pass away without having made a Will. In Illinois, when you die and have no spouse or children, your estate (no matter the size) will be divided into equal shares to your parents and your siblings. If you are married with no children, your spouse inherits everything and if you have children but no spouse, your children will inherit everything. You may decide that this result is acceptable for your situation. However, in the event you would like to specify that certain people receive more or less of your estate, or if you want to protect your assets for your minor children, you will need to have a Will.
A Power of Attorney and
Will are not necessarily complex documents but they are very important. As long
as they are executed correctly, they are legally recognized and tell others
what your wishes are and what you authorize them to do on your behalf. Other documents
can be added to your estate plan and updated as needed when your circumstances change
(i.e. marriage, having
If you would like to begin creating your estate plan or if you have any questions, please feel free to contact Glick andTrostin, LLC at 312-346-8258.
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information contained herein as constituting legal advice. The information may
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