Back in 2019, I wrote a blog about estate planning for younger adults and the importance of addressing this often-overlooked issue. Today, I thought I would revisit and update this topic.

Young adults often assume that estate planning is only relevant for older adults or wealthy individuals. When I was in my early 20s, even while working as an estate administration clerk, it wasn’t something I seriously considered for myself. It wasn’t until I welcomed my son into my life in my late 30s that I truly began to reflect on the importance of estate planning. By that time, I owned a home and other assets that would need to be addressed in the event of my unexpected passing, yet estate planning had never been a priority for me.

Advisors have a unique opportunity to engage young adults in conversations about estate planning, especially considering research shows they are the least prepared age group. A 2022 national survey conducted by Ipsos revealed that only 30% of Canadians aged 18–34 have a will, compared to 74% of those aged 55 and older. Another study reported even lower levels of readiness: just 18% of Gen Z (ages 18–24) and 23% of Millennials (ages 25–34) have a will, leaving the vast majority unprotected in the event of incapacity or death.

Many young adults assume they are “too young” or “don’t have enough assets” to need estate planning. However, advisors play a critical role in educating them about the value of simple estate planning tools. By initiating these conversations early, advisors can help young adults protect themselves and reduce the risk of future conflicts.

In reality, modern life often means young people have concerns that may be more concentrated among people in their age group (digital assets, student loans, and common-law relationships), while sharing some of the same issues and considerations that older age groups have (appropriate beneficiaries, the need to plan for a medical decision maker).

Below, I’ve highlighted a few key considerations for young adults when thinking about estate planning for themselves, and pointed to a few blog posts that expand on some of these issues.

1. The Digital Afterlife: What Happens to Your Online Accounts When You Die?

Young adults likely have one or more of the following types of online accounts:

• Social media profiles
• Cloud storage
• Cryptocurrency
• Email accounts
• Online banking

Estate administration increasingly includes directives for handling digital assets, yet this is often overlooked by younger generations.

Each platform, such as Facebook, Instagram, and TikTok, has different rules for managing accounts after a user’s death. Without proper planning, these accounts may remain active indefinitely or be handled in ways contrary to your wishes.

For more information on this topic, consider exploring the following blogs:

https://www.allaboutestates.ca/digital-assets-how-advisors-are-changing-the-world/

https://www.allaboutestates.ca/digital-assets-spotlighting-client-user-considerations-part-i/

https://www.allaboutestates.ca/icemans-memory-val-kilmers-digital-legacy/

2. Naming a Power of Attorney

Estate planning isn’t just about preparing for death. Accidents and medical emergencies can occur at any age, making it essential for young adults to have both a power of attorney for personal care and a power of attorney for property in place.

3. Cohabiting Without Being Married: What Happens If One Partner Dies?

It is increasingly common for young adults to live with a partner, co-own property, share pets, and share financial responsibilities—all without being legally married.

However, in Ontario, intestacy rules do not automatically protect common-law partners. This often comes as a surprise but can be addressed through proper estate planning.

For further reading on this topic, consider these insightful blogs:

https://www.allaboutestates.ca/til-death-do-us-part-the-bank-accounts-a-warning-for-common-law-couples/

https://www.allaboutestates.ca/intestacy-reform-overdue-ontario/

4. Beneficiary Designations: The Simple Step That Young Adults Forget

Many young adults may already have:

• Employer life insurance
• Group RRSPs
• TFSAs
• Private life insurance

To ensure that the above assets pass to a beneficiary without going through the probate process, it’s important to periodically review beneficiary designations as part of larger estate planning discussion to confirm the appropriate beneficiary is named.

How Advisors Can Help

A simple will can make a significant difference in ensuring a client’s wishes are honoured and their loved ones are protected. Even a basic will outlines who should manage the estate, how assets should be distributed, and who should care for dependants or pets.

By educating young adults about these simple yet essential tools, advisors can empower them to make informed decisions, avoid future complications, and develop lifelong habits of thoughtful planning. This straightforward conversation can have a meaningful and lasting impact.