Ugh, millennials. As soon as they came of age, Boomers and Generation X seemed to have their number, accusing them of being entitled narcissists who lived like Lena Dunham from the TV show “Girls” – letting their parents pay the rent while spending their own cash on nonsense like avocado toast. For a while there, it seemed like this was the group everyone loved to hate. But fast-forward a few years and the impression is radically different. Millennials aren’t spoiled brats; in fact, they’re actually hard workers who are creative and thinking about the future. That’s right, it looks like millennials have been wrongly maligned all along.
In 2014 the Washington Post speculated that millennials couldn’t afford to buy a house because they had too many long brunches and spent all their money on avocado toast. Once that ridiculous criticism aired, it seemed to stick. However, new data shows that contrary to their reputation as self-involved brats, millennials are thoughtful about the world around them and their place in it. And unlike older generations, millennials are serious about estate planning.
No Fear of Their Own Mortality
According to Pew Research Center, the Millennial Generation includes people born between 1981 and 1996. Last year the first group of millennials turned 40, and as it turns out, they’re way ahead in the estate planning game. Surveys show that millennials are investing more than their parents and grandparents generations did at the same age. Millennials seem to be a little less anxious about passing away than their parents’ generation. This attitude could have something to do with everything millennials lived through already. They were just kids when 9/11 happened and they experienced multiple recessions and a once-in-a-lifetime pandemic. One survey showed that 17% of millennials decided to make a will because of COVID-19. Living through trying times has made millennials aware that they can’t take life for granted.
Side Hustles and Small Businesses
Millennials excel at turning hardships into opportunities. A 2020 study by GoDaddy revealed that 30% of millennials have a side hustle or small business in addition to their main job. This has made millennials more strategic about their finances and long-term plans. Many millennials are thinking about how to make their side hustle their main gig, and how to ensure their businesses stand the test of time. That’s why millennials are already considering business succession plans.
Tech Savvy about Digital Assets
Millennials are not only early adopters of technology, they’ve pioneered a lot of it. That’s probably why people between the ages of 20 and 40 own a whopping 94% of the cryptocurrency market. The law hasn’t quite caught up with what millennials are doing with digital assets, which also include social media, NFTs, and other investment products. That’s why millennials are leading the way by including these assets in their estate plans.
Independent and Unconventional
Millennials have always tended to go their own way, which often means they prioritize friends just as much as family. In estate planning documents, many people in this age group actually name non-family members as Trustees or as guardians for their children. They are also more likely to eschew traditional funeral options. Some millennials are even “going green” by opting for biodegradable caskets, choosing green cemeteries, and choosing not to be embalmed.
Philanthropic
Millennials have given a lot of thought to the state of the world and how they can contribute positively. They are more likely to question whether their investments are carbon neutral, for example, and they want their investments to be socially conscious. When it comes to estate planning, this means they want to leave some of their assets to charity.
Pet-Friendly
Millennials have a lower birth rate than older generations, but they are more likely to have pets. They also highly value their pets and want what is best for them. The law doesn’t have much to say about what happens to your beloved animals if you pass away, which is why it’s important to provide for them in an estate plan.
Tips for Millennial Estate Planning
How can millennials be forward-thinking about their estate plans? Here are FastWill’s top tips for millennial estate planners:
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Use AI technology to keep the wills process efficient, accurate, and affordable.
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Consider the positive tax benefits associated with charitable donations as part of the wills process.
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Think about business succession plans and whether you would leave your small business to your family, or partner, or make alternative arrangements.
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Consider naming a personal representative to handle your digital footprint. A personal representative can deactivate or memorialize your online accounts and make sure that any important information is preserved.
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If you don’t want a traditional funeral and burial, make your wishes clear in your living will.
