Estate planning is important for all Americans. However, studies have found that it is certainly not something all Americans have done. Reports indicate that roughly a third of Americans have an estate plan or have written a will, but the remaining two-thirds have not.
This is a startling number, demonstrating that many people and their families are wholly unprepared for their own passing. This increases the odds of estate disputes and can cause issues with asset distribution. So why is it that people have not written an estate plan?
They plan to do it in the future
What many people will say is that they are not neglecting an estate plan, per se, but that they are just going to do it in the future. They are waiting until they are older or until they have more assets.
While this reasoning may make sense, it is still a risk. Many people pass away unexpectedly, which could happen before they get around to making an estate plan.
They do not think it is important for them
Some people specifically think that estate planning is not important, perhaps because they do not fit some imagined criteria. For example, people may say that they do not have enough wealth, thinking that estate planning is only for the very rich. Others may say that they are simply not old enough, believing that they need to make an estate plan in their 60s or 70s.
The reality is that people can make an estate plan at a much younger age and then update it as necessary. Estate planning also is not just for the wealthy, as it can do much more than just distribute assets, such as making medical decisions.
Drafting your plan
Have you not gotten around to making an estate plan yet? If you would like to make one in the next year, be sure you know what legal steps to take.
