Generation X, born roughly between the mid-1960s and early 1980s, faces unique issues due to their life stage and financial situation. Estate planning is an important component of financial planning for Gen Xers. The right estate planning attorney can help you protect your assets, provide for loved ones, and leave a lasting legacy.

Common Financial Issues Faced by Gen-X

Lack of Planning

Most Gen Xers have not started estate planning or may have outdated plans. It is essential to create or update documents like wills and powers of attorney to ensure your wishes are followed and your assets are protected.

Children and Guardianship

Gen Xers often have minor children or children in college. You need to designate guardians for your children in case of your incapacity or death. You also need to establish funds to manage assets for minor children until they reach adulthood.

Blended Families

Divorce and remarriage are common among Gen Xers, leading to blended families. Estate planning becomes more complex in these situations. You would need to consider both current and previous spouses, as well as children from different relationships.

Retirement Planning

Gen Xers are approaching retirement age, so they need to consider how to maximize their retirement savings and ensure they have enough to support themselves in retirement. Estate planning can involve strategies for minimizing taxes and maximizing retirement account distributions.

Digital Assets

With the rise of technology, individuals belonging to Generation X often have significant digital assets, such as social media accounts, cryptocurrency, and digital files. It is important to include provisions for these assets in your estate plan. This includes instructions for accessing and transferring the digital assets.

Long-Term Care Planning

As the Gen X age, they need to consider long-term care planning. This includes options for financing long-term care. You need to ensure you have the appropriate documents in place to designate healthcare proxies and make end-of-life decisions.

Business Succession

Many individuals of Generation X are business owners or entrepreneurs. You should develop a succession plan for your business to ensure it can continue operating smoothly if you become incapacitated or pass away.

Debt and Liabilities

You may still be paying off mortgages, student loans, or other debts. It is important to consider how these debts will be handled upon your death and whether you have adequate life insurance or other assets to cover these obligations.

Estate Planning Tips for Gen-Xers

• Will: A will is a fundamental document that outlines how your assets will be distributed upon your death. It allows you to specify beneficiaries for your property and assets, appoint an executor to carry out your wishes, and designate guardians for minor children if applicable.
• Healthcare Directives: Healthcare directives, such as a living will and healthcare power of attorney, can allow you to specify your preferences for medical treatment and appoint someone to make healthcare decisions on your behalf if you become incapacitated. These documents ensure that your wishes are followed regarding end-of-life care and medical treatment.
• Financial Power of Attorney: A financial power of attorney appoints someone to handle your financial affairs if you become incapacitated and unable to manage them yourself. This individual, known as your agent or attorney-in-fact, can make financial decisions, pay bills, manage investments, and handle other financial matters on your behalf.
• Beneficiary Designations: Review and update beneficiary designations on retirement accounts, life insurance policies, and other financial accounts to ensure they align with your overall estate plan. These designations override instructions in your will, so it is vital to keep them current.
• Guardianship Designations: If you have minor children, designate guardians in your will to care for them in the event of your death. Choose individuals who share your values and can provide a loving and stable environment for your children.
• Digital Asset Plan: You may want to create a plan for your digital assets, including passwords, login information, and instructions for accessing and managing online accounts. Consider appointing a digital executor to handle your digital assets and accounts according to your wishes.
• Long-Term Care Planning: Plan for potential long-term care needs as you age, including options for financing care, such as long-term care insurance or Medicaid planning. You should consider establishing a healthcare proxy or healthcare power of attorney to make healthcare decisions if you are unable to do so yourself.
• Business Succession Plan: If you own a business, develop a succession plan to ensure the smooth transition of your business interests in the event of your death or incapacity. This may involve identifying successors, creating buy-sell agreements, and establishing a plan for business continuity.
• Regular Review and Updates: Do not forget to regularly review and update your estate plan to reflect changes in your life circumstances, such as marriage, divorce, birth of children, significant asset acquisitions, or changes in tax laws. Keeping your estate plan current ensures that it continues to meet your needs and goals over time.

Preserve Your Legacy with the Forever Estate Plan 

Life is full of surprises, and your estate plan should be able to adapt to whatever comes your way. Our Forever Estate Plan is more than just a set of documents—it is a customized approach to estate planning that takes into account your unique circumstances and goals. The Forever Estate Plan is available in all 50 states, so no matter where you are, you can be rest assured that your legacy is in good hands. Don’t leave your future to chance. Call us at (803) 792-0793 or contact us online to learn more.