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Estate Planning in the 21st Century: A Revolutionary Approach
While many may perceive estate planning as an outdated affair fostered by centuries-old common law and statutory mechanisms, it has actually undergone significant evolution in the 21st century. The digital era has not only revolutionized our daily lives but has also made waves in the supposedly stiff waters of estate planning. At DeFreitas & Minsky LLP, we are fully aware of these changes and have embraced the nature and scope alterations brought forth in this new age.
The focus keyword here is 21st Century Estate Planning. Its essence lies in the adoption of modern, digital tools and understanding the evolving dynamics of asset diversity, considering the digital and intellectual properties which a 19th-century estate lawyer would not have fathomed.
Adapting to the Digital Age
The internet has unquestionably changed our lives, creating a whole new realm of assets that need to be accounted for when planning estates. Recent surveys indicate that 60% of adults own digital assets, but only less than 20% include them in their estate plans1. This statistic evinces an alarming hole in traditional estate planning methods.
Here are a few significant areas to consider when converging estate planning with the digital age:
- Accurately outlining digital assets such as online banking, digital currencies, online businesses, and social media accounts.
- Securing digital access by ensuring safekeeping of login credentials.
- Understanding the legal and administrative mechanisms regulating digital asset inheritance.
The Imperatives of Modern Asset Diversity
The 21st Century has ushered a variety of unconventional assets into the picture. Nowadays, apart from houses, vehicles, and land, people invest in intellectual properties, patents, copyrights, pieces of art, and emerging asset classes like cryptocurrencies.
According to the Wealth Report 2021 by Knight Frank, around 6% of ultra-high net worth individuals’ wealth is invested in these “passion assets”2. Therefore, factoring in the value and complexities of these unconventional assets to your estate plan is no longer optional but essential.
Planning for Longer Lives
Another major change that has affected 21st-century estate planning is increased life expectancy. With medical advancements, the average life expectancy has risen to about 79 years in the United States3, and this impacts estate planning significantly by delaying asset transfer and magnifying risks of mental disability.
Estate Planning with a Charitable Lens
Stats indicate a substantial rise in charitable bequests over the 21st century. The Giving USA Foundation has reported that charitable bequests reached $41.91 billion in 2020, a 10.3% increase from 20194. Such statistics speak to an underappreciated component of estate planning with a charitable lens.
Estate planning, therefore, must accommodate this significant shift and help individuals navigate the legal aspects of charitable giving. This change also expands to the type of charitable bequests being made, with more people looking into social causes and arts as primary beneficiaries.
Incorporating the Role of Internationalism
As our world becomes more interconnected, so too does estate planning to accommodate global assets, multinational citizenships, and foreign inheritances. Such complex and cosmopolitan beads require delicate stringing in your estate planning necklace.
The Future of Estate Planning
As we move further into the 21st Century, estate planning will only become more complicated. Yet, in the hands of expertly trained professionals like DeFreitas & Minsky LLP, simpler solutions are possible. By embracing change and preparing for the future, you can ensure your legacy is secure, regardless of what the future may hold.
Estate Planning in the 21st Century is about redefining traditional schemas, adopting a broader asset umbrella, and stepping into modern legal territories with confidence and professional assurance. Therefore, fortify your present to guarantee your future with comprehensive 21st Century Estate Planning. Welcome to the future of legacy!
