How Estate Planning Can Look Differently: Key Considerations for Younger Generations versus Older Generations

Estate planning is a topic that often evokes feelings of hesitation, confusion, and even avoidance.  

While older generations may have more experience with estate planning due to the natural progression of life, younger generations may feel that they have plenty of time before needing to think about their assets and end-of-life decisions. 

But in today's ever-changing world, the traditional approach to estate planning may not be suitable for everyone. 

Whether you are just entering adulthood or approaching retirement age, understanding these differences can help you make informed decisions about your future and leave a lasting legacy for your loved ones.

What Are Some Differences In Estate Planning Between Generations?

Estate planning has evolved over time, and each generation has its unique approach to it. 

The differences between estate planning across generations are impacted by various factors such as advancements in technology, evolving societal norms, and economic changes. 

Let’s take a closer look.

Asset accumulation differences

Estate planning is a crucial process that ensures that your hard-earned assets are distributed in the most efficient manner upon your passing. 

While the purpose of estate planning remains the same across generations, there are some differences in the approach to planning for asset accumulation. The younger generation, for example, tends to prioritize accumulating a nest egg and may focus on investment planning and risk management while the older generation may already have a significant asset base and may be more concerned with strategies to minimize estate taxes and protect their assets. 

Family needs

With each passing generation, the needs and values of families have shifted, leading to differences in estate planning. 

For instance, baby boomers may prioritize leaving inheritance and minimizing taxes, while younger generations tend to place more emphasis on creating trusts to protect their assets from creditors or divorce settlements. 

Additionally, there has been a shift towards sustainable options such as eco-friendly burials and earth-friendly memorials. 

Digital estate planning

Digital assets are now part of many people's estates, including younger generations.

These assets may include social media accounts, cryptocurrencies, and online investment accounts. 

Older generations may not have much digital property to plan, and most of their assets are traditional, including cash, real estate, and stock portfolios.

Trusts

Estate planning is a crucial part of everyone's life, and the differences in estate planning for trusts needs between generations cannot be ignored. 

A significant factor that sets generational differences apart when it comes to estate planning is the mindset. 

Younger generations are more focused on creating a lasting impact, while older generations prioritize wealth preservation. 

Additionally, the evolving tax laws and the changes in family dynamics require a different approach to estate planning for trusts, depending on the generation.

It’s vital to work with a skilled estate planning attorney who can understand the differences in estate planning needs to ensure that your assets are protected and passed on according to your wishes.

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DISCLAIMER: The content contained herein is for general informational purposes only.  These materials do not constitute legal or other professional advice.  We do not accept any responsibility for any loss that may arise from reliance on this information.  No reader should act or refrain from acting based on information contained in this article without seeking advice of counsel.