You probably heard that a recent Pew Research Center analysis of census data shows that the most common living arrangement for adults ages 18-34 (aka millennials) is living at home with their parents. This is now a more common arrangement than a young adult living with a spouse or roommate or alone.
And while there is a lot of discussion about how this new normal is affecting our economy, housing market, and marriage rates, did you know this also significantly impacts the family estate plan?
Most traditional estate plans assume that young adult children live independently of the parents and outside of the family home.
If you have a young adult child living at home, here are some unique questions you need to talk about with your family trust attorney so your family trust can best protect you, your adult child who lives at home, and your other family members:
- What happens when I pass away and my young adult child is still living at home? Do they have to be given notice to move out? Do they have a right to remain there?
- Should my young adult child who lives at home receive the same inheritance as my other children who live outside the home?
- Should my young adult child who lives at home have a right of first refusal to purchase the family home after I pass away?
- How can I make medical and financial decisions for my young adult child who lives at home if they became seriously injured or passed away?
- Do I need a contractual arrangement with my young adult child who lives at home that addresses rent, rights, eviction, etc. similar to what I would have with a tenant?
If you have a young adult child living at home, talk with your Newport Beach Family Trust and Estates Law Firm about how your family trust can appropriately reflect your family dynamic and living situation, and best protect the entire family. Call Bonnie Johnson at (949) 718-0420 to schedule a Planning Session with a Meier Law Firm attorney who can show you your options and help you establish or update your plan.