People don’t make estate plans nearly as often as they should. For example, only about a third of Americans have an estate plan right now. Eventually, 100% of Americans will pass away, meaning there is a clear need for an estate plan to make medical decisions or distribute assets. But most people just don’t have one on file.
Why not? That depends on the person and their unique situation. Below are three of the top reasons.
1. They don’t know how to begin
Often, the issue is just that the estate planning process is complicated. The person may not know what documents they need to use or what options they have. They may not be sure how the legal system works. This makes the whole thing feel daunting, and so they put it off.
2. They assume they can wait
Another reason for procrastination is that people assume they have a long time to write an estate plan. Someone may be in their 40s, for example, and assume they have around 30 more years to draft their plan. But if they pass away unexpectedly, they may not get around to it in time.
3. They don’t think it’s necessary
Often, people just make the mistake of assuming that only the rich need estate plans for their extensive assets. But you don’t have to have a net worth in the millions for an estate plan to be beneficial. It can still be helpful when planning for your medical future, distributing sentimental items and much more.
If you do not have a plan yet, it’s important to recognize that this is a significant risk for your family—and to begin looking into the legal steps you can take to create that plan.