Estate planning is critical in managing your assets and protecting your wishes after your passing. It involves creating legal documents like wills, trusts and advanced healthcare directives. These documents outline how your assets will be distributed. However, that’s not all estate planning is responsible for; it also determines who will care for your children or manage your affairs if you become incapacitated. However, most Americans still choose to procrastinate when it comes to drafting their own will.
How Many Americans Have a Will?
According to a survey by Caring.com, only 32% of Americans have a will in 2024. This is a 6% decrease from 2023, marking the first drop in estate planning rates since 2020. Many Americans cite a lack of assets, procrastination and uncertainty about the process as reasons for not having a will. However, estate planning is vital for everyone, including young people or those who possess few assets.
The Importance of Estate Planning for Young Adults
Interestingly, younger Americans (ages 18-34) are more likely to have a will than older generations. The COVID-19 pandemic heightened awareness about the importance of having a will, leading to a 50% increase in young adults creating wills since 2020. This trend shows that major life events and increased awareness can drive estate planning among younger people.
Real Stories Highlighting the Need for Estate Planning
An article by Katv describes how mother of four, Amy Kennedy, delayed estate planning partly because their eldest son has special needs. They found determining who would care for him challenging, and the decision drifted away with time. “You just get so busy with the day-to-day that you blink, and a year goes by,” she said.
Micah Bonaviri, an estate planning lawyer, highlights another trend: people are getting married and having children later in life. This shift can lead to delays in estate planning, since people may not prioritize it until they reach these milestones. Individuals without children may also underestimate the importance of having a will, thinking it’s only necessary for those with heirs.
Why Should You Create an Estate Plan?
Estate planning is not just for the wealthy. Every adult should have one in place, regardless of their financial situation. Distributing assets and managing the care of children is vital. However, good estate planning also protects your well-being and values during your lifetime.
Documents like powers of attorney and advance healthcare directives specify your wishes in case you become incapacitated. They put your finances, personal affairs and medical care in the hands of yourself and those you trust rather than strangers appointed by the court. Good estate planning makes stressful, confusing situations more bearable and predictable.
How Should I Start My Estate Planning?
Starting your estate planning journey can feel daunting. However, it doesn’t have to be. Here are some steps to help you get started:
- Inventory Your Assets: List your assets, including property, bank accounts and valuable items.
- Consider Your Wishes: Consider how you want your assets distributed and who you trust to manage your affairs.
- Seek Professional Guidance: Consulting with an estate planning attorney can help ensure that your plan is comprehensive and legally sound.
- Create Essential Documents: Draft your will, healthcare directive and any trusts or powers of attorney you may need.
- Review and Update Regularly: Life changes, and so should your estate plan. Review and update your documents regularly to reflect your current wishes.
Plan for Peace of Mind
Don’t wait until it’s too late to protect your assets and ensure that your wishes are followed. Schedule a consultation with our estate planning attorneys today to create an estate plan that protects you and your loved ones.
Key Takeaways
- Low Percentage of Americans with Wills: Only 32% have a will, a decrease from previous years.
- Common Reasons for Delay: Procrastination, perceived lack of assets and uncertainty about where to start are common reasons people delay estate planning.
- Impact of Life Milestones: Delays in marriage and having children contribute to postponing estate planning.
- Importance for All Ages: Younger adults increasingly recognize the importance of a will, especially following major life events, like the COVID-19 pandemic.
- Need for Early Planning: Starting early with estate planning can provide peace of mind and ensure that your wishes are followed.
- Professional Guidance: Consulting with an estate planning attorney can simplify the process and help ensure that your documents are legally sound.
Contact John M. Lane Law, PLLC to schedule a time to discuss your estate planning needs and best strategies for carrying out your wishes.
References: Caring.com “2024 Wills and Estate Planning Study” and Katv (July 25, 2024) and “Fewer Americans have a will; first decrease in estate planning rates since 2020”
