Many Americans have neglected to create a last will and testament.
People often choose to avoid what is actually good for them.
Children refuse to eat veggies.
Adults neglect exercise.
Individuals and couples disregard their need for estate planning.
This is problematic because estate planning serves various vital roles for Americans.
Documents like last wills, trusts, powers of attorney, and advance health care directives protect you, your assets, and your loved ones.
Without these documents, your wishes regarding who inherits or takes care of minor children will not be honored.
Americans are grossly lacking in their estate planning preparedness.
According to a recent survey referenced in the Caring.com article titled “2024 Wills and Estate Planning Study,” a mere 32 percent of Americans have a will in 2024.
This means the rate of estate planning has dropped for the first time since 2020, with a 6 percent decrease compared to 2023.
Yikes!
Why do people neglect estate planning?
The reasons are varied, including procrastination, lack of assets, and uncertainty about what estate planning entails.
Although these reasons may seem understandable at first, the truth is even young people with few possessions need assets.
Even single young adults benefit from having a will and other estate planning documents.
Although it may seem odd, young Americans between ages 18 and 34 are more likely to have estate plans than older Americans.
One reason for this trend is the effects of the COVID frenzy, where people became more aware of the value of having a last will and testament.
Since 2020, there has been a 50 percent increase in young adults creating last wills.
What does this mean?
Significant life events can drive estate planning awareness and action from young adults.
Consider the story in a recent Katv article titled “Fewer Americans have a will; first decrease in estate planning rates since 2020.” The article recounts how a mother of four chose to delay estate planning because of the challenges associated with deciding who would care for her eldest son with special needs.
As she struggled with the question, time marched on, and she still had no estate plan to protect her children.
Another trend highlighted by Micah Bonaviri, an estate planning attorney, is the shift to marrying and having children later in life.
Many single adults disregard estate planning until they have a spouse or children to inherit their assets because they mistakenly believe one must have heirs to create a last will.
The average person can benefit from estate planning.
All American adults should have an estate plan regardless of what is in their bank account.
A last will provides directions for the care of orphaned children and the distribution of assets.
Other documents protect your wishes and your well-being while you are still alive.
Advance healthcare directives and powers of attorney support you and your loved ones if you become incapacitated by giving a trusted individual authority over financial and medical decisions.
Without these documents, the court may appoint a stranger to fill these roles.
Starting anything is daunting because you do not always know what to anticipate.
Estate planning does not have to be scary if you know what to expect and what steps to take.
Inventory Your Assets.
Knowing what you have will help you plan for who will inherit it or how it will be managed if you become incapacitated.
You should list assets like bank accounts, property, and other valuable items.
Consider Your Wishes.
Think about who you would like to inherit from you as well as who you trust to manage your affairs if you become incapacitated or die.
Seek Professional Guidance.
You should consult with an experienced estate planning attorney to create a comprehensive estate plan that is in accordance with your wishes and the laws of your state.
Create Essential Documents.
After discussing your wishes with an experienced estate planning attorney, the attorney will draft and have you sign your last will, powers of attorney, advance health care directives, and any trusts required for your comprehensive estate plan.
Review and Update Regularly.
Because life is filled with twists and turns, you should review and update your documents regularly so they continue to align with your current wishes and state law.
Take action now to protect your wishes and your assets.
Request a consultation if you are interested in working with Harvest Law KC.
Only 32 percent of Americans have a last will, and the number of those with estate plans has decreased in the past year.
While there are many reasons for procrastination, many people do not understand the purpose and processes of estate planning.
Many people believe they must be married or have children to warrant getting their affairs in order.
Because every adult would benefit from estate planning, it is essential to prioritize these documents and consult an experienced estate planning attorney who can guide them through the process.
This post is for informational purposes only and does not provide legal advice. You should contact an attorney for advice concerning any particular issue or problem. Nothing herein creates an attorney-client relationship between Harvest Law KC and the reader.
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”
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