Matt Watson, CEO of Origin Financial, has highlighted the lack of understanding and cost-effective options as primary barriers preventing younger generations from creating estate plans. However, there has been a significant shift in recent months, with 45% of planning sessions involving millennials and Gen-Zs resulting in the creation of estate plans. This indicates an unmet demand for estate planning among younger demographics.
The surge in estate planning among Gen-Z and millennials is driven by factors such as digital assets, health awareness heightened by the COVID-19 pandemic, changing family dynamics, philanthropic desires, and financial prudence. By proactively creating estate plans, individuals can ensure that their assets are distributed according to their wishes, avoid probate, make provisions for incapacity, minimize family conflict, and secure their digital legacy.
A study revealed that financial illiteracy cost Americans $352 billion in 2021, emphasizing the importance of basic financial planning, including estate planning. Gen-Z’s proactive approach to estate planning offers hope for a prosperous future by ensuring assets are distributed as intended. Estate planning provides control and protection over accumulated assets and enables individuals to make decisions regarding their care and finances in case of incapacity.
Origin Financial has introduced an estate plan document creation feature within its app, simplifying the process of creating a legally-binding estate plan. By leveraging user data already tracked in the app, users can easily generate a semi-customized template for their estate plan with a few clicks. This innovation democratizes access to crucial estate planning tools and emphasizes the importance of estate planning for all individuals, not just the wealthy.
Certified Financial Planners agree that estate planning is essential for everyone, regardless of their net worth. By making estate planning accessible and easy to create, companies like Origin Financial are filling a critical gap in financial planning tools. The movement among younger generations to embrace estate planning highlights a growing understanding of its value, not only for asset distribution but also for ensuring wishes are respected in unforeseen circumstances.
In conclusion, the trend of younger generations embracing estate planning demonstrates a shift towards recognizing the importance of planning for the future. With technological advancements making it easier than ever to create an estate plan, individuals are encouraged to take proactive steps in protecting their assets and ensuring their desires are met in the event of incapacity or death. Setting up an estate plan, regardless of net worth, offers peace of mind and financial security for the future.
