Why Millennials Need an Estate Plan Now More Than Ever
How an Entire Generation of Young Adults Can Reduce Unnecessary Risk in an Uncertain World to Better Prepare for the Future
Introduction
What comes to mind when you think of estate planning?
Most people picture a nursing home, or a funeral parlor, or even a cramped office space filled with gray-haired lawyers and aging clients.
They imagine stacks of boring legal documents related to tax issues impacting 7- and 8-figure earners.
In short, they picture something not meant for everyday people.
There’s some truth to these beliefs. Once upon a time, estate planning was a tool reserved primarily for affluent and high-net-worth families who could afford the historically expensive legal services required to fend off Uncle Sam at death.
Nowadays, however, given the advent of new technologies, more affordable services, and a federal estate tax exemption threshold (i.e., the level at which your estate becomes taxable) that surpasses the net worth of approximately 99.3% of households, estate planning is more accessible than ever before.
In fact, a basic estate plan for a married couple with kids usually costs anywhere from $2,500 - $5,500, depending on your particular circumstances and the cost of living in your area. Considering that not having a plan in place could, on average, cost you 3-7% of your loved ones’ estate and 6-18 months in court working through the probate process, the math is in your favor.