Yes, Millennials DO Need Estate Planning

Here are five steps you can walk them through:

1. Draw up a will to create a plan for your belongings — who will inherit what, both financial and personal. Don’t forget about your virtual assets, like your iTunes and social media accounts.
2. Make a list of your usernames and passwords to all financial and personal accounts, and make sure your loved ones know about it and have access if it’s online.
3. If you’re working, you probably have a 401(k) and company-sponsored life insurance. Make sure to name beneficiaries on these accounts to avoid probate.
4. Let your bank know you’d like a payable-on-death (POD) account. This allows you to name a beneficiary, which keeps the account out of probate.
5. Name a durable power of attorney and health care proxy. These are two important estate planning documents that allow others to make financial and medical decisions for you if you become incapacitated. If you want to give your proxy specific instructions, create an advance directive, also known as a living will.

Through this conversation, you’ll help them understand that estate planning isn’t only for the old and rich — and that it’s just as much about their own peace of mind as it is creating clarity for their families in a time of chaos.

We can’t prevent tragedy, but we can help create a plan so families can focus on what matters: honoring the lives of their loved ones.

Please encourage your clients to work with you as well as their entire financial team when creating their estate plan.

— Read 3 Lessons Prince Left Agents and Advisors, on ThinkAdvisor.

Michael Babikian is the chief executive officer of LegacyShield, a financial services exchange built around a family information management system.