The results of a survey conducted by a leading digital estate planning platform suggest that many millennials in Michigan and around the country are struggling to cope with their financial situations. Almost three-quarters of the 15,000 millennials surveyed expressed a desire to pass on wealth to their heirs, but only 38% of them said that they had drafted a will or trust. When asked why they were putting off estate planning tasks, the respondents mentioned caregiving responsibilities, soaring mortgage rates and economic uncertainties.
The sandwich generation
Millennials make up a large part of what demographers call “the sandwich generation.” This term refers to people who care for their aging parents as well as their children. About three-fifths of the millennials surveyed were part of this group, and more than half of them said that caregiving responsibilities will likely affect their financial legacies. High housing costs are also taking a toll on millennials. More than half of the survey respondents said that high property prices and rising mortgage rates have forced them to put their plans to purchase a home on hold.
The “Great Wealth Transfer”
Millennials are expected to among the chief beneficiaries of what experts have named ”the Great Wealth Transfer.” About $84 trillion will pass from one generation to another by 2045, and millennials are expected to receive about $27 trillion of this money. Despite this, only 43% of the millennials surveyed said that they expect to receive an inheritance. When asked if they had discussed estate planning matters with their older relatives, only 58% of the respondents said that they had.
Peace of mind
The “Great Wealth Transfer” is expected to transfer $27 trillion to millennials by 2045, but most of the millennials who responded to a recent survey said that they do not anticipate receiving an inheritance. The results of the survey also suggest that many millennials are putting off drafting wills or trusts because they are under financial stress and worried about economic uncertainties. This is unfortunate because putting an estate plan into place does not require a major financial investment, but it can ease stress and provide peace of mind.