It’s fairly clear that everyone will eventually need an estate plan. Wealthy individuals may have significant assets to pass down, whether these are financial or tangible. But even those who don’t necessarily have significant wealth still need to pass down family heirlooms, minor financial assets and things of this nature. Additionally, estate planning can be used to make medical decisions, plan for long-term care and secure someone’s future.
But despite the fact that there are benefits for everyone, most people don’t have an estate plan. According to some studies, two out of three Americans have not yet written a will. Why is this?
Putting it off until they’re older
One of the most common reasons that people give is that they are putting off their estate planning efforts until they’re a bit older. They may just think that they’re too young. Even in their 40s or 50s, they still assume they have decades left before they’ll actually need to write a plan.
It feels too complex
In other cases, people say that they know they need a will, but they don’t know how to start. How do they draft one? What documentation do they need to file? What does the legal process look like? The complexity keeps them from getting started.
They don’t see how it can help them
Finally, there are those who genuinely believe they don’t need an estate plan, often because they think it is only for wealthy people and that they don’t have enough assets for it to matter. But as noted above, estate planning can also focus on medical decisions or transferring items with sentimental value.
Planning in advance is very important, so be sure you know what steps to take to create an estate plan this year.