Estate planning is vital for everyone, but it is crucial for millennials. Why? Because many millennials are just starting their careers and have young families. They need to make sure they have a plan if something happens to them. This guide will provide information on estate planning for millennials in Florida.
What is Estate planning?
Estate planning is creating a plan for what will happen to your belongings and children if you pass on or become incapacitated. The process includes creating documents such as a will, trusts, and Powers of Attorney. These documents allow you to specify how you want your estate distributed and who will manage it if something happens to you.
Why is estate planning important for millennials?
As this article stated, estate planning is vital for millennials because they are just starting their careers and have young families. If something happens to you as a millennial, you must ensure that your belongings and children are taken care of. Additionally, estate planning can help you avoid probate. Probate is a legal process that can be expensive and time-consuming. By having a plan in place, you can avoid this process.
What Estate planning documents do I need?
There are many different estate planning documents that you can create, but some of the most important ones for millennials are wills, trusts, and Powers of Attorney. These documents will allow you to specify how you want your estate to be distributed and who will manage it if something happens to you. Other important estate planning documents include:
-Living will: This document allows you to specify your medical wishes if you cannot communicate them yourself. For instance, you can specify whether you want to be on life support or not.
-Funeral plans: This document allows you to specify your funeral wishes and designate someone to carry out those wishes. This can be a helpful document because it can take the burden off of your loved ones during a difficult time.
-Beneficiary designations: This document allows you to specify who will receive your assets, such as your retirement account or life insurance policy if you pass away. This is an essential document because it can help ensure that your assets go to the people you want.
-Durable Power of Attorney: This document allows you to designate someone to make financial and legal decisions on your behalf if you cannot do so yourself. This can be a helpful document in case you become incapacitated and cannot make decisions for yourself.
How can a Millennial create an estate plan?
There are many ways that you can create an estate plan. You can hire an attorney, use an online estate planning service, or do it yourself. If you decide to do it yourself, many estate planning resources are available online, but doing it yourself isn’t the best way because estate planning can be complex. The best way to create an estate plan is to hire an attorney specializing in estate planning.
Estate Planning Issues for Millennials in Florida
Florida is a unique state when it comes to estate planning. Here are some estate planning issues that you should be aware of as a millennial in Florida:
-Florida is a community property state. If you are married, your spouse will automatically inherit half of your estate unless you have specified otherwise in an estate planning document.
-Florida has estate taxes. If your estate is valued at over $11.18 million, you will owe estate taxes to the state of Florida.
-Florida has a probate process. As previously mentioned, probate can be expensive and time-consuming. You can avoid probate by having a plan in place.
-Florida has hurricane risk. If you live in Florida, you need to consider hurricane risk when planning your estate. You should plan what will happen to your estate if a hurricane damages or destroys your property.
Factors Millennials should consider during Estate planning.
There are many factors that you need to consider when estate planning, but here are some that are especially important for millennials:
The most significant difference between the requirements of older adults and those of other generations is the style in which their wills are written. Millennials were born into a digital world with computers, mobile devices, and computers that offered them constant access to the internet’s online activities.
They also have a greater capacity than previous generations to acquire access to technology assets. You can decide what digital asset your loved one will have if you pass on when creating a digital estate plan. A digital estate plan details all of your valuable digital possessions as well as who has access to these assets when you pass away. Your estate planning attorney will guide you through the process of creating a digital estate plan.
Another factor that millennials need to consider when estate planning is student loans. If you have student loans, you must ensure they are paid off before your estate is distributed to your beneficiaries. You can include language in your will that states how you want your student loans to be paid off. You can also set up a trust to hold money to repay your student loans.
Marriage & Cohabitation
Estate planning is especially important if you are married or in a long-term relationship. You must ensure that your spouse or partner is cared for if you pass on. You can do this by including them in your will and setting up a trust. Also, consider giving them the power of attorney so that they can make financial and medical decisions for you if you cannot do so.
It would help if you also considered what will happen to your retirement savings when you plan an estate. You can choose to have your retirement savings distributed to your beneficiaries when you die. Still, you may want to leave it to trust so it can continue growing and provide income for your beneficiaries. It would be best if you spoke to your estate planning attorney about handling your retirement savings.
Traditional & transfer-on-death assets
Transfer-on-death assets are another type of asset that you need to consider when estate planning. Transfer-on-death assets are assets you can designate to be transferred to your beneficiaries when you die. You can set up a transfer-on-death designation for your bank accounts, investment accounts, and life insurance policies. It would be best if you spoke to your estate planning attorney about the best way to handle your transfer-on-death assets.
If you have children, estate planning is even more critical. You need to decide who will take care of your children if something happens to you. You can do this by appointing a guardian in your will. It would help if you also created a trust for your children to protect their inheritance and be used for their education and other expenses. You should speak to your estate planning attorney about the best way to provide for your children in your estate plan.
Organ donor wishes
You should also include your wishes for organ donation in your estate plan. You can do this by including language in your will or by registering as an organ donor with the state of Florida. It would help if you spoke to your estate planning attorney about the best way to include your wishes for organ donation in your estate plan if you have an interest in doing such.
You should also consider what will happen to your pets when you die. You can include language in your will that states who will take care of your pets when you die. Also, consider setting up a trust for your pets, so their needs are cared for after you pass on. You should speak to your estate planning attorney about the best way to provide for your pets in your estate plan.
If you have aging parents, consider their needs in your estate plan. You may need to provide for their care if they can no longer care for themselves. You can set up a trust to hold money for their care. Also, include language in your will that states how you want your parents to be taken care of if they can no longer take care of themselves. You should speak to your estate planning attorney about the best way to provide for your aging parents in your estate plan.
What happens if you don’t have an Estate plan?
If you pass on in Florida without an estate plan, your estate will go through probate. Probate is a court-supervised process for distributing your estate. The downside of probate is that it can be time-consuming and expensive. Probate can take months or even years to complete if you have a complex estate. During this time, your loved ones may not have access to your assets. Additionally, probate is a matter of public record, so your estate may be subject to estate taxes.
Probate assets and non-probate assets
Your estate consists of both probate assets and non-probate assets. Probate assets are assets that are subject to the probate process. Non-probate assets are not subject to the probate process. Examples of probate assets include real estate, bank accounts, and investment accounts. Examples of non-probate assets include life insurance policies, retirement accounts, and transfer-on-death assets.
It’s important to note that even if you have a will, your estate may still be subject to probate. This is because not all assets can be distributed through a will. For example, real estate must go through probate in order to be transferred to your beneficiaries.
Children and pets
If you have kids and haven’t designated a guardian, the court will decide who takes care of them. This is a big responsibility, and you want to ensure that your children are in good hands. Additionally, if you don’t have an estate plan, your assets may not be distributed the way you want. In this case, the state will determine how your assets are divided among your heirs. Your pets may also be in danger if you don’t have an estate plan. If you don’t designate a caretaker for your pets, they may end up in a shelter or be put down.
To avoid these issues, it’s crucial to have an estate plan in place. An estate plan can help you protect your assets and ensure that your loved ones are taken care of. If you’re unsure where to start, an estate planning attorney can help you create a plan that meets your needs.
If you have any questions about estate planning for millennials, don’t hesitate to contact our office. We would be happy to help you create a plan that meets your unique needs. Thanks for reading!