As of 2025, Millennials are between the ages of 29 and 44. We are at a stage in life where careers are building, families are growing, and futures are being forged. While thoughts of “estate planning” might seem premature (we get it, you’re not exactly staring retirement in the face!), it is still relevant – even beneficial – right now at our ages. How? Well, estate planning isn’t just about what happens after you’re gone; it’s about protecting yourself and your loved ones today. Think of it as a smart strategy for managing your assets, your healthcare, and your peace of mind. Plus, there can be real tax advantages to setting up things like trusts, which you can benefit from while you’re still around to enjoy them!
Why millennials need estate planning
While ‘estate planning’ might conjure up a mental image of an elderly millionaire divvying up his or her fortune, it’s actually incredibly relevant for millennials – and offers benefits that go way beyond a simple will:
- Ensure your wishes are honored: Determine exactly how your assets are distributed, ensuring your loved ones are taken care of according to your desires.
- Protect your children: If you have young children, estate planning allows you to designate guardians to raise them in the event of your unexpected passing.
- Plan for your pets: You can even make arrangements for the care of your fur babies, too!
- Make healthcare decisions in advance: A healthcare directive lets you specify your medical preferences if you become unable to communicate them yourself. You can also appoint a “medical power of attorney” who would make your medical decisions on your behalf.
- Manage your finances if you’re incapacitated: A power of attorney allows a trusted person to handle your financial and legal affairs if you’re unable to do so.
- Potentially reduce your tax burden: Placing assets in a trust can offer tax advantages and help avoid probate, simplifying the process for your loved ones.
Estate planning provides peace of mind, knowing that you’ve taken steps to protect yourself and your family, no matter what life throws your way and no matter what stage of your life you are in.
Key estate planning documents for millennials
What type of documents do you need in your estate plan? Here are the different types of estate planning documents that you should consider including in your estate plan:
- Will: A last will and testament can devise your assets to your beneficiaries, name a guardian for your minor children, and give your pet to a certain person. It can also list out final arrangement wishes.
- Trust: A trust can help avoid probate and can even allow you to enjoy your assets while you’re alive and then pass it on to your beneficiaries when you die.
- Medical proxy: A medical proxy document effectively appoints a person to make medical decisions on your behalf if you become incapacitated and are unable to do so.
- Living will: A living will allows you to list out your specific healthcare wishes if you become incapacitated, such as whether you’d want life support, etc.
- Power of attorney: A power of attorney document allows you to appoint a person to act on your behalf in regards to financial and legal matters if you become unable to do so.
- Beneficiary designations: If you have life insurance or retirement funds you’ve likely designated a beneficiary for these assets. Make sure you have listed the correct beneficiary for these and update accordingly.
You don’t need to create all of the above documents, but doing so can be beneficial in certain situations, so it’s important to speak with an attorney to determine which documents are right for you.
Millennial-specific estate planning concerns
Millennials have been blamed for killing everything from napkins to department stores. (Apparently, avocado toast is the real culprit behind our inability to afford houses… who knew?) But when it comes to estate planning, there are some serious myths floating around. Let’s debunk a few:
“I don’t have any money so I don’t need an estate plan yet”
There’s more to estate planning than just devising assets upon death. There’s also ways to make sure your minor children get the guardian you want them to, pets to receive continuity of care, and medical plans for if you become incapacitated. Its more than just having assets.
“It’s too expensive”
As millennials, we all love a good online/virtual product where we don’t have to leave our home to get something done. And guess what? You don’t have to leave your home anymore to get your estate plan done. There are legitimate online services that can help you get your estate planning journey started.
“I don’t know where to start”
Start with a google search on whatever is most important to you. Maybe it’s guardianship for minor children. You can get this done online in a standalone document or within a will. Taking it one step at a time can help make the whole process a little easier.
“I have digital assets like crypto and a large social media following”
Yes, you can make sure your digital assets are protected in an estate plan–whether through a will or a trust. You should also consider how you want your accounts to be treated once you pass or become incapacitated – should they be deleted or memorialized?
“I have student loan debt”
Federal student loan debt gets cancelled once a person dies. However, private student loan debt may not and your estate may be required to pay off the loans. This means whatever you owe in loans, your leftover stuff will have to cover the debt first before it can pass on to your loved ones.
The bottom line is that its never too late to start
While it’s not fun to image all the awful and unexpected things that can happen in life, it’s the reality. Making sure your children, pets, stuff, and healthcare wishes are taken care of in any scenario can give you an immeasurable amount of peace of mind that you and your loved ones are protected. From a simple will to a medical proxy to beneficiary designations, there are so many ways to handle estate planning as a millennial, it’s up to you and your loved ones to determine what makes the most sense. Happy planning!
Nicole Sheehey is the Head of Legal Content at HelloPrenup, and an Illinois licensed attorney. She has a wealth of knowledge and experience when it comes to prenuptial agreements. Nicole has Juris Doctor from John Marshall Law School. She has a deep understanding of the legal and financial implications of prenuptial agreements, and enjoys writing and collaborating with other attorneys on the nuances of the law. Nicole is passionate about helping couples locate the information they need when it comes to prenuptial agreements. You can reach Nicole here: Nicole@Helloprenup.com
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