Incapacity Planning in Reno: Key Steps for Millennials' Future

Attention Millennials: Now is the Time to Plan

As a millennial, your contributions to the workforce are significant, and you're driving positive changes in the world. We recognize that your concerns might differ from those of previous generations, and we're here to help you create an estate plan that addresses your unique needs and priorities. In Reno, planning for potential incapacity is essential to ensure your wishes are honored if you cannot manage your affairs. Here are key steps to help you develop a comprehensive estate plan.

Select Your Key Decision-Makers

If you become incapacitated due to injury, illness, or other reasons, it's crucial to have legally designated someone to act on your behalf. Without this, no one can step in without court intervention, including making medical decisions or managing your finances. If a court must appoint someone, state law often prioritizes immediate family members over significant others or friends.

To avoid this, appoint an agent under a financial power of attorney to handle financial decisions and a medical power of attorney for healthcare decisions. These roles require different skills, and you can choose the same person or different individuals for each role.

Millennials Estate Planning

Complete Employment Forms Correctly

Millennials are a dominant force in the workforce, with many jobs offering life insurance and retirement plans. It's crucial to review and complete beneficiary designations accurately. Incorrect designations can lead to probate and distribute assets according to your will or state rules if you lack a will. We can help you choose the right beneficiaries and determine how best to leave assets to fulfill your wishes.

Consider Life Insurance Beneficiary Options

Individual Beneficiary: While straightforward, this approach has drawbacks, such as vulnerability to creditors and legal issues. Consider whether your beneficiary can handle a lump sum responsibly.
Trust Beneficiary: A trust can safeguard inheritances, directing funds according to your instructions and protecting assets from creditors and legal claims.
Charity Beneficiary: Naming a charity as a beneficiary supports philanthropic goals and provides tax benefits but reduces the inheritance available to loved ones.

Think About Retirement Account Beneficiaries

Spouse: Naming a spouse can offer asset protection and tax advantages.
Minor Child: Minors will have distributions managed by a guardian until they reach legal age.
Adult Loved One: Generally, they must withdraw the entire account within 10 years unless an exception applies.
Trust: Trusts can manage retirement assets for beneficiaries, offering control and protection.
Charity: Charities benefit from tax advantages, reducing estate tax liabilities.

Have a Plan if You Are Not Married

If you're unmarried, your assets will be distributed according to state laws, which typically prioritize family over significant others. Proactive estate planning ensures your wishes are followed.

Include Your Pets in Your Plan

Millennials are the largest group of pet owners, so it’s important to designate a caregiver for your pets, allocate funds for their care, and consider compensating the caregiver.

Take Action Now

Estate planning can be overwhelming, but we're here to help you navigate the process, ensuring you and your loved ones are well-prepared for the future. Reach out to us to schedule your appointment and gain peace of mind knowing your affairs are in order.