Estate Planning for Millennials: Where to Start in 2025

Estate planning might sound like something only wealthy retirees need to worry about. But if you’re a millennial with a job, a bank account, digital assets, or anyone who depends on you you need an estate plan.

It’s not about mansions or millions. It’s about control. Who gets your stuff if something happens to you? Who makes decisions if you can’t? In 2025, estate planning isn’t just for your parents it’s for you.

Let’s break it down, step by step, with modern tools and examples designed for your generation.

Why Millennials Can’t Ignore Estate Planning Anymore

Most millennials are now in their 30s and 40s. Many own homes, have kids, freelance gigs, or investments yet most don’t have an estate plan.

According to a 2024 Caring.com survey, only 32% of adults under 45 have a will or any estate documents, even though most acknowledge it’s important. The disconnect? People think they’re too young, or it’s too expensive or complicated.

But failing to plan means:

The state decides who gets your assets.
A court may assign someone to manage your affairs.
Your loved ones face stress, confusion, and possible legal disputes.

You don’t need to hire a high-priced lawyer or write a 50-page document. Start small, start smart and update as your life grows.

Step 1: Create a Basic Will or Trust

A will lets you name:

Who inherits your assets
Who should take care of your children (if you have any)
Who will carry out your wishes (called an executor)

If you die without a will (called intestate), your state’s laws decide what happens to your property—and it might not go to the people you’d choose.

For more control and privacy, some millennials opt for a revocable living trust, which lets you:

Avoid probate (the costly court process that follows death)
Keep financial matters private
Plan for disability or incapacity

Trusts are especially useful if you own real estate, have kids, or want to pass assets without delay or legal red tape.

Tools to try:

Trust & Will – Easy online setup for wills or trusts
FreeWill – Create a legal will online in about 20 minutes
Nolo – Legal software with estate templates

Step 2: Name Your Beneficiaries (and Keep Them Updated)

Even if you don’t have a will, your beneficiary designations override it on accounts like:

Life insurance
Retirement plans (401(k), IRA)
Bank accounts with a POD (payable on death)
Investment accounts

If you opened these years ago and listed an ex, or no one at all, that’s who still gets the money.

Review and update your beneficiaries every few years or after big life changes like marriage, divorce, or having kids. It only takes a few minutes and can prevent huge headaches later.

Step 3: Assign Power of Attorney

A power of attorney (POA) gives someone the legal right to make decisions for you if you’re incapacitated. You can set it up to cover:

Financial matters (paying bills, managing investments, signing documents)
Healthcare decisions (through a medical or healthcare POA)

Without it, your family might need to go to court just to access your accounts or approve treatment.

Think of POA as your emergency toolkit. You hope you’ll never need it but if you do, it saves time, money, and stress.

Real-life example:
Tasha, a 33-year-old designer in Austin, had a bike accident and ended up in a coma for several weeks. Her partner couldn’t access her bank accounts to pay rent or speak to her doctors because Tasha never assigned a POA. It added a legal mess to an already heartbreaking situation.

Step 4: Account for Your Digital Assets

This is where estate planning in 2025 really changes.

Millennials are the first generation with significant digital assets—think:

Crypto wallets
Venmo or PayPal balances
Monetized YouTube channels or TikTok accounts
Domain names
Cloud photo libraries
Password managers

In your estate plan, you can name a digital executor and leave instructions for:

Accessing important logins
Handling social media accounts (deletion, memorialization)
Managing online income streams or intellectual property

Tip: Use a password manager like 1Password or LastPass, and give access to your executor. Platforms like Everplans or GoodTrust also help store digital directives securely.

Step 5: Add a Healthcare Directive

A healthcare directive (or living will) outlines your medical wishes in case you can’t speak for yourself. It might include:

Whether you want life support or resuscitation
Organ donation preferences
Religious or cultural considerations

Pair it with a medical POA so someone you trust can speak to doctors and make choices on your behalf.

Hospitals are increasingly digitizing records, so it’s smart to upload your directive to your patient portal, and let your family know where to find a copy.

Step 6: Keep It Organized and Accessible

An estate plan is only helpful if people know it exists and can find it.

Best practices:

Store digital and physical copies in separate places
Give key contacts access (spouse, parent, lawyer)
Review and update your plan every 2–3 years or after major life events

You can use tools like Notion, Google Drive, or Everplans to create a “When I’m Gone” folder with everything your executor or partner might need from legal docs to subscription logins.

Estate Planning Myths Millennials Still Believe

“I don’t have enough money for a will.”
Actually, not having a plan could cost your family thousands in probate fees. Many millennials have more than they think—including retirement accounts, digital assets, and life insurance.

“My spouse will just handle it.”
Without legal documents, they may be blocked from managing your finances or making medical decisions.

“I’ll do it later.”
Emergencies don’t wait. And making a plan now is much easier than leaving your loved ones to untangle things during a crisis.

Start Now, Adjust Later

Your estate plan doesn’t have to be perfect it just has to exist. Think of it like a savings plan: start small, build over time.

As your life changes marriage, kids, homeownership, entrepreneurship you can layer in more complexity. But the earlier you begin, the more peace of mind you gain.

Next up: Power of Attorney: Types, Rights, and How to Assign One — Learn exactly how to protect yourself and your finances if you ever can’t act for yourself.