Two out of three American adults are unprepared from an estate planning perspective, and this is not confined to younger people. Less than half of individuals that are 55 years of age and older have estate plans in place.
Why do they ignore an event that is one of the certainties of life? In this post, we will look at five reasons why people fail to take action.
The first group is comprised of individuals that are fully aware of the fact that estate planning is important. They have it on their to-do lists, but somehow, it keeps slipping through the cracks.
Many if not most of the same people are very diligent about planning for retirement, and they manage other financial responsibilities without fail. This mentality should extend to the estate planning process.
You could look at it as an extension of all the other financial planning that is a routine part of your life. After you take the proper steps to provide for your loved ones, you can go forward with peace of mind.
Uncertainty About Final Decisions
Let’s say that your family dynamic is in flux. You are estranged from one of your children, and your marriage has been strained at times. At the end of the day, you don’t feel as though you know enough about the future to plan out your legacy.
This is understandable, but in reality, estate planning should be viewed as a process from the start. Even if you think that your trajectory is etched in stone, things can change unexpectedly. There is no reason to take pause because you don’t know if circumstances will be different later on.
Don’t Have Sufficient Resources
There are those that do not act because they do not have a lot to pass along. Once again, this is an incomplete perspective. Anyone can purchase life insurance, and this is one consideration. Plus, there are items that have sentimental value. Thirdly, when you state your wishes in a legally binding manner, you can prevent a confusing situation after your passing.
On top of the financial considerations, there is another element. A properly constructed estate plan will include an incapacity component. Your plan should include advance directives for health care to state your medical preferences. You can also name someone to manage the financial assets that you do have in a durable power of attorney.
There Is Still Plenty of Time
As a younger adult, you may feel as though estate planning is not important because you are not going to die any time soon. That’s probably true, but if you think about it, you can name a litany of celebrities that passed away before their time. To hammer home the point, many of them did not have estate plans in place.
One of the disturbing things about estate planning preparedness among young adults is the fact that these are the people that are the parents of minor children. As soon as other people are relying on you, estate planning becomes an absolute must.
Don’t Know Where to Begin
Caring.com conducts surveys every year about estate planning preparedness, and they asked unprepared respondents why they did not have plans in place. A significant percentage of them stated that they knew it was important. However, they went on to say that they simply did not know where to begin.
This relatable on one level, because there is a lot to take into consideration. Plus, there are different approaches that can be applied. This is where we can enter the picture to guide you through the process.
We provide personalized attention, because each scenario is different. When you work with our firm, we will gain understanding of your situation and make recommendations. At the end of the process, you will emerge with a tailor-made plan that is right for you and your family.
If you are ready to get started, you can schedule a consultation at our Westport or Glastonbury, CT estate planning offices if you call us at 860-548-1000. And if you would rather send us a message, fill out our contact form and we will get in touch with you ASAP.
- Estate Planning Guide: Important Factors to Consider - March 23, 2023
- Top 5 Reasons for Estate Planning Unpreparedness - March 7, 2023
- Omnibus Appropriations Bill Includes Secure Act 2.0 Provisions - February 16, 2023