Articling Weekly is a new weekly series of blogs exploring trends and changes in estates brought about by Gen Z written by current WEL Partners Articling Student Chhavi Monga. Here the first of the series.

DID YOU KNOW: Gen Z is changing the trends of Estate Planning

Did you know that November is Ontario’s Make a Will month, and therefore, with Ontario’s Make a Will Month approaching, there seems no better time to discuss the budding trends and changes in Estate planning, especially with Gen Z at the forefront of these new changes. While some associate the term estate planning with hours of diligent research and paperwork with financial complications, which is true to some extent as estate planning is a diligent yet essential task, it is somehow gaining more popularity with the younger generations, including Millennials and Gen Z. The idea of estate planning seems like a distant thought for those in their twenties and early thirties as there might not be much of an estate to be planned for. However, this perception is rightfully changing with Gen Z all around the world at the forefront of a new era in estate planning.

As per the 2024 Trust and Will Study, an astounding 33% of Gen Z already have an estate plan in place, this is a sizable number when considering the fact that much of the Gen Z population consists of teens to early twenties, often with likely not much to leave in their will. This shift reflects a broader trend of younger individuals realizing that estate planning is not just for the wealthy.[1] This change in estate planning is not just noticed in North America, but around the world, as another report from the United Kingdom, from 2021 by the online end-of-life platform Aura by Farewill and Legal & General further supported this change, finding that Gen Z is more likely than the previous generations to plan for the future especially with those born between 1995 to 2002, being four times more likely than the baby boomer generation to create a before end of life wish list.[2]

Why the Sudden Shift?

This sudden change in the perception regarding estate planning could be attributed to a myriad of factors affecting the younger generation. Global events, including the COVID-19 pandemic, and the sudden passing of several high-profile individuals including the members of the British Royal family, have brought mortality into a sharper focus for Millennials and Gen Z around the world. As previously mentioned, this change isn’t just prevalent in North America but around the world as research shows that there is about twelve times higher number of Britons under the age of 35, who are now writing Wills than the pre-pandemic number in December 2019.[3] Furthermore, fintech specialists Farewill reported a 23% increase in the number of young people making Wills in their Year in Wills Report for 2021.[4]

The Importance of Estate Planning for the Younger Generation

While many young adults may have fewer assets to distribute, there are several compelling reasons why creating a Will is crucial:

1. Control over assets: A Will ensures that the wishes of the testator regarding savings, possessions, and property are carried out according to their intentions, including but not limited to the testator’s philanthropic desires
2. Family protection: A Will streamlines the process for the testator’s family or any other beneficiaries of the Will, helping them avoid the legal complexities and delays that can arise if one chooses to die intestate.
3. Digital assets: With the growing value and use of digital assets as a source of revenue, without a valid Will, many such important assets which may require management and protection, including – cryptocurrency, online businesses, and social media accounts may all become inaccessible.
4. Partner protection: Contrary to popular belief, there are many scenarios in which the deceased’s assets do not automatically transfer to their partner unless they are married. A Will can safeguard the testator’s partner’s access to their estate.[5]

Other Key Drivers

In addition to these reasons, several other factors are motivating younger generations to embrace estate planning. Gen Z often holds significant digital assets that require careful management and protection. The COVID-19 pandemic has also raised awareness about the importance of preparing for unforeseen health crises. Furthermore, modern family dynamics, such as blended families or partnerships without marriage, call for clear directives to prevent disputes. Philanthropy is another motivator, with many young people wanting to allocate part of their estate to charitable causes. Finally, financial planning, including estate planning, is increasingly recognized as an essential aspect of personal financial management.[6]

The changes brought about by the Digital Revolution

The advent of online Wills is further facilitating this shift, particularly for Millennials and Gen Z. An online Will is created through digital platforms rather than through a traditional lawyer. Although online Wills must still be printed and signed in ink to be legally valid in most provinces, British Columbia has recently permitted fully digital Wills. This approach offers a more affordable and accessible alternative for individuals with less complex estate planning needs.[7]

As the younger generations continue to redefine estate planning, their approach demonstrates a clear shift towards efficiency, accessibility, and thoughtful consideration of their unique assets and values. By embracing both traditional and digital methods, younger generations are ensuring that their wishes are honoured and that their loved ones are protected.

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[1] Trust & Will: 2024 Estate Planning Study “The Millennial approach to estate planning”, online: Trust & Will <https://trustandwill.com/documents/2024-millennial-estate-planning-study>.

[2] McPherson, Douglas, “Why are more young adults writing Wills?”, (12 April 2022), online: Collins & Hoy Solicitors <https://collinshoy.com/why-are-more-young-adults-writing-wills/>.

[3] Ibid

[4] Farewill “The Year in Wills Report 2021”, online : Farewill <The Year in Wills Report 2021 (farewill-app.s3.eu-west-1.amazonaws.com)>

[5] Catmull, Jaime, “Why Gen-Z Is Suddenly Creating Wills And Trusts — And You Should Too”, online: Forbes <https://www.forbes.com/sites/jaimecatmull/2024/04/17/why-gen-z-is-suddenly-creating-wills-and-trusts—and-you-should-too/>.

[6] Ibid

[7] Willful, “How Digital Wills Empower Millennials and Gen Z in Estate Planning”, online <How Digital Wills Empower Millennials and Gen Z in Estate Planning – Serenia Life Financial>