Estate Planning For Young People: Why Gen Z And Millennials Need To Write A Will
Many young people believe estate planning is unnecessary, especially since they are still starting their careers and have no significant assets. However, the COVID-19 pandemic has changed this perception, with more young people now seeing the importance of planning for the future and preserving their wishes. Ramsden Lawyers Will & Estates team highlights why it is essential for Generation Z and Millennials to have an estate plan in place, regardless of age, health status, or financial situation.
Introduction: Why estate planning matters for young people
Many young adults focus on building their careers, starting a family, and finding their way. However, death is an inevitable part of life, and no one knows what the future holds. Ramsden Lawyers Will & Estates team explains that not having an estate plan in place is risky, similar to riding a motorcycle on the highway without wearing a helmet. With Generation Z comprising around 20% of Australia’s population and almost 30% of the world’s population, many of whom are now above 18 years old, it is crucial to consider estate planning.
Why young adults need to plan their estate
Young adults need to plan their estate, even if they may think they have little wealth. Many assume that estate planning is only necessary for the elderly or those with large estates, but this is a common misconception. Everything that belongs to a young adult, including personal possessions, motor vehicles, and non-estate assets such as superannuation and life insurance policies, forms part of their estate.
Young adults increasingly invest earlier in life, and the percentage of young Australians exposed to stocks and other investment strategies is much higher than in previous generations. This means that even if they do not have significant liquid assets, their portfolio and net worth could grow substantially in the future. Moreover, millennials are expected to inherit trillions of dollars in human history’s largest intergenerational wealth transfer. Inheriting assets such as property, investments, and businesses can bring significant wealth and assets into a young adult’s estate, making estate planning even more critical. By planning their estate early on, young adults can ensure that their assets are distributed according to their wishes and that their loved ones are cared for in the event of their untimely death. Estate planning can also help to minimise disputes among family members and reduce the tax burden on their estate.
The COVID perspective: Why more young people are engaging in estate planning
Recent research has shown that 70% of Australians still need to prepare a Will, but the COVID-19 pandemic has caused a shift in mindset, with more people planning for the future. Caring.com’s annual survey revealed that nearly 1 out of 2 younger adults was prompted by COVID-19 to engage in estate planning. In 2021, 18-34-year-olds were more likely to have a Will than 35-54-year-olds, highlighting the importance of planning for the future.
Estate Planning 101: What young people need to know
Estate planning is documenting your wishes for what happens to your assets when you die, giving you peace of mind that your assets will be distributed according to your wishes. This includes making a Will, nominating beneficiaries to receive your superannuation, appointing a Power of Attorney, and documenting your wishes around medical treatment and who will manage your affairs if you lose capacity. Having an estate plan ensures your loved ones are cared for and prevents family disputes.
The consequences of not having a Will
If you pass away without a Will, it means you die intestate, which can result in difficulties in managing your estate and distributing your assets according to your wishes. Ramsden Lawyers Will & Estates team stresses the significance of creating a Will to guarantee that your wishes are acknowledged, and your loved ones receive their intended shares. By creating a Will, you can prevent unnecessary complications and uncertainties and ensure that your assets are distributed how you want them. Ramsden Lawyers Will & Estates team underscores the importance of creating a Will to ensure that your loved ones are taken care of, and your legacy is preserved according to your wishes.
Conclusion: Planning for the future
It is imperative to plan for the future; regardless of age, health status, or financial situation, estate planning is crucial. Estate planning can alleviate the burden on your loved ones and ensure your wishes are fulfilled after your passing. Ramsden Lawyers Will & Estates team encourages young people that it is never too early to plan their estate and encourages them to consider creating a Will to avoid future complications and provide their loved one’s peace of mind. By taking proactive steps towards estate planning, they can safeguard their legacy, protect their assets, and ensure their loved ones are provided for according to their wishes.
RAMSDEN LAWYERS – ESTATE PLANNING SERVICES FOR A SECURE FUTURE
At Ramsden Lawyers, we understand the importance of having an estate plan, even at a young age. Doing so can safeguard your assets and relieve your loved ones of any burdens they may face after you’re gone.
Our experienced estate planning lawyers can guide you through creating a personalised plan that meets your unique needs. Whether you want to ensure your family is taken care of, leave a legacy to a charity, or plan for business succession, we can help.
We take pride in having one of the country’s most experienced Wills and Estates departments, and our team is passionate about helping clients document their wishes for peace of mind. With us, the estate planning process is simple and stress-free.
To get started, you can book an appointment with any of our lawyers through our website’s online booking app.
We have conveniently located offices in Gold Coast, Brisbane, and Sydney, and our lawyers are always available to meet with you. Protect your future with Ramsden Lawyers today.