The Millennial Approach to Estate Planning

Financial planning in changing landscapes

Amidst rising prices and interest rates, Millennials are scrutinizing their finances more closely than ever before, with 81% acknowledging a heightened awareness of their economic realities. Despite diligent savings efforts, many Millennials face barriers to homeownership due to soaring property prices and mortgage rates, compounded by low housing supply.

A staggering 55% of Millennials surveyed express frustration at being unable to purchase property, with many stating they may never own a home. This sentiment poses significant implications for intergenerational wealth transfer. 

Strains of the sandwich generation

Financially, Millennials navigate a complex landscape, with some relying on parental support—27% received contributions when purchasing homes—while others find themselves in the position of supporting their aging parents. A significant portion (39%) fall into the "sandwich generation," shouldering the responsibilities of caregiving for both children and parents.

This dual role strains finances further, with 58% acknowledging its impact on their ability to pass on wealth, despite 74% expressing a desire to do so. Notably, estate planning motivations for Millennials often stem from parenthood, with 73% of Trust & Will's Millennial members in 2023 having children.

Bonus: Insights for Financial Advisors

Amidst economic turbulence, Millennials demonstrate a proactive approach to estate planning, with 48% expressing interest in financial advisors' assistance. Notably, Gen Z leads with 32% prioritizing financial advisor inclusion in their 2024 or 2025 financial goals. Family influence plays a significant role, with 28% preferring advisors trusted by their parents.

This familial trust signifies an opportunity for advisors to bridge generational gaps and initiate crucial conversations around estate planning, unlocking a growing market eager for professional guidance. As younger generations actively seek financial advice to navigate economic uncertainty, advisors evolve into trusted navigators with ample opportunities for tailored services and educational initiatives.

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