The Complete 2023 Estate Planning Report
Why 73% Of Americans Aren’t Making an Estate Plan (And How to Easily Complete Your Own!)
Last Updated: November 23, 2023
Written by
Rebecca Koehn
Rebecca Koehn, BSc, MFA
Rebecca Koehn has been working in content creation and editing for over ten years and search engine optimization for over five years. Koehn is the Content Marketing Manager for LawDepot...
Reviewed by
Ngaire King
Ngaire King, BA, JD
Ngaire King is Legal Counsel for LawDepot. Ngaire has been working in the legal field for over five years and was called to the bar in Alberta in 2020. Before becoming a lawyer, Ngaire ...
|
Fact checked by
Jasmine Roy
Jasmine Roy, BCSC
Jasmine is a professional writer, editor, and SEO specialist with over five years of experience in content creation and digital marketing. In 2018, she completed her Bachelor of Communi...
Key Takeaways:
- Our recent survey found that 73% of respondents do not have a documented estate plan.
- The majority of respondents started their estate plan between the ages of 55 and 64.
- Their main reason for making an estate plan was "I wanted to make handling my assets as easy as possible for my loved ones after I pass away."
Originally Published: January 24, 2023
An estate plan gives you two main things: control and peace of mind.
While most of us like having control and peace of mind, chances are you’ve still seen articles or news segments highlighting how few Americans have a Last Will and Testament. These reports often cite how “only 20% of Americans have an estate plan by the time they’re 65”, “only one-third of parents have a Will,” or “millennials aren’t estate planning!”
The thing is, we all know we should make an estate plan.
These other reports make it sound like most Americans are okay with having the state make decisions for them. They don’t look past the flashy statistics and act on the more important question:
Why don’t you have an estate plan?
Here at LawDepot, we decided to change that.
We surveyed and quizzed 973 of our users to determine the following:
- Who has an estate plan
- How well do people actually understand estate documents
- How they made their plan if they have one
- What’s keeping them from making a plan if they don’t have one yet
- Which part of estate planning they found the most challenging
- Which documents were the most confusing
What is an estate plan anyways?
Almost every adult has an estate. Simply by living your life, you acquire estate components, including your home, car, bank accounts, student loans, debts and more. Eventually, someone must handle these things if you pass away or become incapacitated.
Let’s bust a common myth right away:
Your estate plan is not only for after you die.
Yes, estate plans hold all the documents your loved ones will need to settle your affairs after you pass away. However, estate plans also contain invaluable documents that can help your loved ones care for you and your finances if you become ill or injured. This is crucial whenever you cannot make decisions or communicate your wishes.
Without an estate plan, if you become incapacitated or pass away, you leave much of the decision-making to the state.
If you die without a Last Will and Testament or Living Trust, the state will distribute your assets to the appropriate beneficiaries as defined by your state’s laws. Similarly, suppose you become incapacitated without a Living Will or Power of Attorney. In that case, the state will appoint someone on your behalf to make medical, financial, real estate and even family decisions, like who will care for your children.
If you’re not in love with the idea of having no control, start your estate planning today.
How many Americans have a documented estate plan?
Before we can talk about the difficulties of estate planning (and how we can make it easier), we have to start with the basics: How many people actually have a documented estate plan?
Of our 973 respondents:
- 23% had a documented estate plan
- 11% tried to create an estate plan but didn’t complete it
- 62% did not have an estate plan
This means that 73% of respondents do not have an estate plan.
Who has an estate plan?
Our survey supports that annual household income has the most significant impact on having an estate plan or not. We found that as household income increased, so did the percentage of respondents that had a documented estate plan.
34% of respondents with an annual household income of more than $150,000 had a documented estate plan. In contrast, only 8% of respondents with an annual household income of less than $25,000 had a documented plan.
Besides income, age seems to have the second most significant impact on completing estate planning.
Respondents above the age of 75 had the highest percentage of completed estate plans, although this was only 28%.
Furthermore, gender seems to have little to no impact on estate planning; 22% of women and 23% of men reported having a documented estate plan.
Surprisingly, having children also appears not to have a significant impact on completing one’s estate planning. While 75% of our respondents reported having children, only 22% of these parents had an estate plan.
At 32%, widowers were the biggest relationship group to have completed their estate planning. Singles and separated spouses were the groups with the least documented estate plans, with only 12% and 10% respectfully having finished their plans. Additionally, only 24% of married respondents had a documented estate plan.
Now that we know some of the general statistics around who has and doesn’t have an estate plan, let’s take a step back and look at how well we understand the documents inside these plans.
How well do Americans understand estate planning documents?
To kick off our quiz and survey, we asked respondents to select which documents they had a general understanding of.
Last Will and Testament and Power of Attorney were the two documents that respondents felt most confident they comprehended, with 67% of respondents answering that they understood these documents.
Although a Living Trust can fulfill a similar purpose as a Last Will, only 38% of respondents said they had a general understanding of this document. Pour-Over Wills, which work in tandem with Living Trusts, were the worst understood. Only 9% of respondents claimed to understand the document.
15% of respondents without an estate plan (and never tried making one) said they weren’t familiar with any of the listed estate planning documents. This is significantly higher than the 1% of respondents with an estate plan that selected “none of the above.”
To make the rest of the article more accessible for you, here’s a quick explanation of the referenced estate documents and their alternate names:
| Contract | Also known as | Definition | Used |
| Last Will and Testament | Last Will | A legal document that comes into effect after you die and dictates how you want to distribute your estate | When you pass away |
| Living Trust | Grantor Trust | A document that creates a trust (i.e., a legal entity) that holds assets for beneficiaries to inherit eventually. “Living” refers to the fact that the trust is created during your lifetime. There are two main kinds: revocable (i.e., can be changed) and irrevocable (i.e., cannot be changed) | Comes into effect as soon as it’s signed but is used to distribute assets once you pass away |
| Pour-Over Will | A type of Will that works together with a Living Trust. A Pour-Over Will transfers (or pours) any assets not included in your trust at the time of your death into the Living Trust. | When you pass away | |
| Power of Attorney (POA) | This document allows one person to appoint another person to act on their behalf concerning finance, real estate, business, and more. There are two main types: ordinary and durable. | When you become incapacitated or aren’t present to make decisions for yourself | |
| Medical Power of Attorney | This is a specific kind of POA that allows you to grant medical decision-making powers to another person. | When you become incapacitated or cannot make decisions for yourself | |
| Living Will | Advance Directive, Personal Directive, Health Care Directive | Use this document to specify the medical treatments you wish to receive if you become incapacitated and can’t communicate. Many Living Wills include a Medical Power of Attorney. | When you become incapacitated or cannot make decisions for yourself |
| End-of-life Plan | Funeral Plan | This document specifies how you want your body to be dealt with and whether you would like any funeral or memorial services to be held in your name. | When you pass away |
| Codicil | Amendment to Last Will | Use this document to make changes or amendments to an existing Last Will and Testament. This is useful for keeping your estate plan up-to-date. | When you pass away |
| Personal Care Profile | Use this to describe your interests, beliefs, and other personal information to your caregiver if you become ill, lose your mental capacity, or as you age. | When you become incapacitated or are not present to make decisions for yourself | |
| Just-in-Case Instructions | Letter of Last Instructions | Compile your personal, legal, and financial information into a single document for quick reference. These instructions help someone you trust to take care of a wide range of tasks on your behalf. | When you pass away, in the event of an emergency or if you need someone to care for your affairs for an extended period |
Quiz Scores
We quizzed respondents by asking them seven questions related to estate planning documents. Also, we instructed respondents at the beginning of the quiz to choose “unsure” if they were not confident they knew the correct answer.
The average quiz score was 64%:
- Respondents with a completed estate plan scored 70% on average
- Respondents without an estate plan scored 61% on average
- Respondents who tried to make an estate plan scored 64% on average
Respondents with an average annual household income of greater than $150,000 did the best on the quiz, with an average of 72%. Seeing as these respondents had the highest percentage of completed estate plans, it makes sense that they'd understand the documents the best.
Similarly, respondents with an annual household of less than $25,000, which had the fewest completed estate plants, did the worst on the quiz with an average of 57%.
Interestingly, although 28% of respondents 75 years old or older had documented estate plans, this grouping performed below average on the quiz. Respondents 75 or older scored only 58% on the quiz.
The Most Correctly Answered Questions
Let’s start with the good news! Despite the average quiz scores above, there were a few questions on our quiz that respondents performed very well on. As such, we were able to narrow down the estate planning documents that were the most well-understood.
Last Will and Testament
When asked to choose the correct definition of a Last Will and Testament, 82% of respondents chose the correct answer. This surpasses the 67% of respondents who stated they had a general understanding of a Last Will.
As a Last Will is one of the most essential estate planning documents, we were happy to see that most respondents understand at least this document.
Living Will
The next document that was the most well-understood was a Living Will. Although only 50% of respondents indicated that they had a general understanding of a Living Will, when asked to choose the correct definition of the document, 77% of respondents got the answer correct.
Since a Living Will can go by many names, such as Health Care Directive and Advanced Directive, it is an easy document to get confused about. As such, we were glad to see the majority of respondents got this question correct. Furthermore, only 10% of respondents answered that they were unsure of the correct answer.
Power of Attorney
We asked respondents to indicate which areas you can grant your personal representative the authority to make decisions on your behalf:
| Area you can grant authority in | Percent of respondents that chose this answer |
| Your real estate | 74% |
| Your business | 63% |
| Your finances | 82% |
| Your family’s care | 40% |
| Your medical care | 65% |
While most respondents didn’t know that you can use a Power of Attorney to appoint an agent to handle your family’s care if you are not available to act or are incapacitated, they did get the other four areas correct.
Moreover, only 10% of respondents indicated they were unsure when answering this question.
The biggest misconceptions about estate planning
Now that we’ve gone through the wins of the quiz, let’s take a look at the questions that caused the most wrong answers. We’ve distilled these down into three misconceptions about estate planning:
1. Estate plans are only for after you pass away
One of the biggest myths of estate planning is one we already busted in the opening of this article:
“Estate plans only contain documents that are useful after you pass away.”
When we asked our respondents the same question, 16% of respondents answered that the above statement was true, and 23% said they were unsure.
We listed a swath of documents applicable before the creator passes away. Despite reading this info, only 61% of respondents were confident that estate plans contain important documents for before you die.
Estate plans can contain valuable documents like Living Wills and Power of Attorneys that are important if you ever become incapacitated or are unavailable or unable to make decisions.
In the event of a medical emergency, these two documents can save your loved ones from having to make tough decisions in a time of high stress and emotions. This is because they allow you to express your wishes and appoint someone you trust to make decisions on your behalf.
2. Last Wills and Testaments don’t go through probate court
67% of respondents were confident they had a general understanding of a Last Will and Testament. When presented with three definitions, 82% of respondents chose the correct definition of a Last Will:
“A legal document that allows you to specify how you want your assets distributed after you pass away.”
However, probate is one area of Last Wills that is not as well understood. Only 47% of respondents knew that a Last Will typically must go through probate court.
In probate, a court will decide if your Will is valid and enforceable. If, for some reason, a court decides your Will isn’t valid, it appoints an administrator to determine how to distribute your assets. This means there’s the potential that your assets won’t be passed on to your beneficiaries as you wanted them to be.
The probate process can take anywhere from weeks to over a year and depends on multiple factors:
- The executor
- The number of beneficiaries
- Debts the creator of the Will had
- Amount of assets
- Type of assets
- If anyone contests the will
In addition, part of the probate process includes your Will becoming a part of public records.
In some states, probate can be an extensive process and require the assistance of a lawyer, and thus hefty lawyer fees. One way to avoid a lengthy probate process is to use a Living Trust and Pour-Over Will instead of a Last Will.
3. Living Trusts are overly complicated and only for the wealthy
Only 38% of respondents answered that they had a general understanding of how a Living Trust works. When tested on the definition of a Living Trust, only 38% of respondents chose the correct answer:
“A legal document that allows a third party to hold assets on behalf of the beneficiaries and distribute them once you pass away.”
This was the most incorrectly answered question on the entire quiz. 28% of respondents chose the definition of a Living Will, and 21% of respondents selected that they were unsure of the answer.
Furthermore, of our respondents with completed estate plans, only 26% chose to create a Living Trust versus the 41% who chose to create a Last Will and Testament. Even when we refined the answers to only those respondents who stated their estate plan contained a Living Trust, only 56% chose the correct answer of what a Living Trust is.
So, let’s take a second and explain what a Living Trust is and how it works.
How does a Living Trust work?
A Living Trust is a legal document that the owner of an estate creates to transfer assets into a trust. Essentially with a trust, you name one or multiple trustees to hold and manage the assets until you pass away and then distribute the assets based on your instructions.
This is often where trusts become confusing.
The benefit of a trust is that when assets are placed into them, the creator of the trust, called a grantor or trustor, is legally no longer the owner of the assets; the trust is. This way, the trust does not have to go through probate as a Last Will does.
Technically, the grantor gives up control of their property and assets by creating a Trust. However, you can name yourself the trustee and continue to manage and control your assets as you normally would until you pass away.
With a Trust, you also appoint a successor trustee to manage all the assets once you pass away or if you become incapacitated. The successor trustee also passes your assets on to your beneficiaries. It’s important to note that the successor trustee cannot change who gets what once you pass away.
A common form of Trust is a Revocable Living Trust. Revocable means you can change or cancel the Trust after forming it. Living, in this case, highlights that the Trust becomes active while the creator is still alive.
Why choose a Living Trust instead of a Last Will and Testament?
Living Trusts are designed so that the Trust is the legal owner of your assets.
As such, Living Trusts do not have to pass through probate. This means that a court generally cannot take control of distributing these assets. Avoiding probate also means beneficiaries inherit trust assets much quicker than those in a Will, which they can’t get until after probate.
Respondents that created a Living Trust said they did so because:
| Reason for choosing a Living Trust | Percent of respondents that chose that a reason |
| “I wanted my beneficiaries/heirs not to have to go through probate court and deal with the associated costs” | 53% |
| ”I wanted to be able to be more specific as to when and how my beneficiaries would receive their inheritance” | 27% |
| “I wanted to minimize estate tax” | 20% |
15% of respondents also stated that they made a Living Trust because their lawyer or financial planner recommended it. Furthermore, 8% of respondents that made a Last Will instead of a Living Trust said that they did so because they didn’t know a Living Trust was an option.
There’s a myth that Living Trusts are only for people with considerable assets.
16% of respondents that made a Last Will instead of a Living Trust stated it was because they didn’t have substantial enough assets to need a Living Trust. However, only 9% of our respondents that made a Living Trust said their amount of assets impacted why they made a Living Trust.
However, anyone with an estate can make a Living Trust. Lyle Solomon, Principal Attorney at Oak View Law Group, notes:
“It's a common misconception that trusts are only used by the very wealthy. Trusts, on the other hand, can play an essential role in many estate plans. They give you more control over how your assets are distributed and allow you to keep the details of your assets private after your death. Furthermore, trusts can:
-Reduce the taxes owed by your estate and heirs
-Guard your assets against lawsuits and creditors
-Impose conditions on how and when your assets are distributed”
Why don’t you have an estate plan?
Our survey showed that 61% of respondents don’t have an estate plan and have never tried to create one. An additional 11% of respondents don’t currently have a documented estate plan but have tried to create one.
The biggest question we had for these respondents was: Why?
Respondents who never made an estate plan stated that the main reason is that they aren’t sure where or how to create one, followed closely by not having the time and not knowing which documents they need.
Respondents who started but didn’t finish their estate plan had the same top three reasons. However, these respondents stated the main reason for not completing their estate planning was not having the time, followed by not knowing which documents they needed, and not being able to figure out where or how to finish their plan.
It’s important to note that only 1% of respondents that have never made an estate plan and 0% of respondents who have tried and not completed theirs said they were “fine with the state dividing their assets” as a reason for not having an estate plan.
Also, only 4% of respondents that have never made an estate plan and 2% of those that have tried but did not complete theirs selected “I don’t think I’m old enough to need one” as a reason for not having an estate plan.
Interestingly, when we asked what significant life events would cause them to start estate planning, the top answer for both groups was reaching a certain age.
How old should you be to start estate planning?
Our survey showed that most respondents believe estate planning is only necessary once you enter the later years of your life.
25% of respondents without an estate plan said they were waiting to create one until they were between 65 and 74 years old. 31% said they were waiting until 55 to 64, and 17% said they were waiting until they were 75 or older.
Similarly, for those that had tried to make an estate plan but had not completed it, 27% of respondents said they would complete their plan when they were between 55 and 64, 23% said between 65 and 74, and 19% said 75 or older.
The survey results suggest that respondents believe estate planning doesn’t need to be done until you are middle-aged or older. Our respondents with an estate plan also supported this belief since 25% of them created their plans between the ages of 55 and 64. Only 11% of respondents created their estate plans before age 34.
But here’s the kicker: a whopping 72% of respondents above 55 still did not have a documented estate plan.
So while there might be a connotation that estate planning is just for when you’re older, it’s still something most Americans aren’t completing when they reach that age. This is likely because age doesn’t affect the top three reasons respondents don’t have a completed estate plan:
- They’re not sure where or how to create one
- They haven’t had the time to create one
- They don’t know which documents they need
LawDepot wants to help increase the number of Americans that complete their estate planning. So, we reached out to the estate and financial planning experts to get their best advice on completing the process quickly and without headaches.
Where and how do I make an estate plan?
To answer the first problem, we can look at how respondents with a completed estate plan made theirs:
- 51% of respondents created their estate plans with a lawyer.
- 36% of respondents created them using an online service, such as LawDepot.
- 10% of respondents wrote their estate plans by themselves.
When it comes to creating an estate plan, these are the three most common methods, each with its pros and cons.
Handwrite your estate plan
While writing your estate plan yourself may seem like an easy way to save money and time,it’s generally not recommended by experts as estate planning documents can be very complicated. It’s possible self-made documents won’t capture every detail you need for them to be valid and enforceable.
Consult an expert
Hiring a lawyer may make sense if you have a large estate or want expert guidance. Zakiya J. Norton, Esq., Co-Founder and Partner of Norton Basu LLP, recommends working with an attorney because:
“One of the many benefits of working with a knowledgeable attorney is that you don’t have to know which documents you need or how to execute them. A lawyer can guide you and ensure that all your bases are covered.”
If you consult an expert, make sure you don’t just pick the closest one to you. Do your research!
Ensure the attorney or financial advisor you choose specializes in estate planning and is well recommended by their clients. Hillary Vaillancourt, Partner and Founder of The Vaillancourt Law Firm, LLC., recommends talking with your friends and family about this decision. “Many have already made a plan and could recommend a good attorney,” she says.
However, lawyers can charge hefty fees. As noted above, 32% of respondents without estate plans stated it was because they couldn’t afford to create one. For these respondents, hiring a lawyer may not be financially viable.
Utilize an online legal document service
An online service decreases the cost of estate planning dramatically, but it makes you responsible for determining which documents you need. Since 57% of respondents stated that they didn’t have completed estate plans due to not knowing which documents they needed, using an online service may not be the best for everyone.
If you use an online legal document service, you must choose a trusted website that employs legal professionals to make their forms, as LawDepot does. Laws can differ significantly between states, so ensure you use a service that customizes your document to your state’s laws. Furthermore, read the information they provide about each document to determine if it’s the correct fit for you.
Which is the least confusing method of making an estate plan?
Our respondents were split on how they felt about the estate planning process. 44% said it was simple and straightforward, while another 44% said it was slightly confusing but manageable.
Interestingly, the majority of respondents that used an online service described the process as simple and straightforward. Most respondents that used a lawyer described it as slightly confusing but manageable. Perhaps unsurprisingly, 13% of respondents that created their estate plans with a lawyer thought the process would be impossible without an attorney or financial advisor.
Start your estate planning off easy by making a personal inventory
Multiple experts, including Brannon Lambert (CFP, CPFA, CEP), Owner and Founder of Canvasback Wealth Management, and Sabine Franco, Esq., Managing Attorney and Founder of The Abimitious Legacy Firm P.C., say the easiest and best place to start your estate planning is by creating a list of everything you own.
Franco states:
“A great place to start is to create a simple list of everything that you own, including all of your accounts, your properties, your insurance policies, and retirement accounts, etc. Having all those things [listed] will help you evaluate all you have to protect and prepare to set up a proper plan.”
Lambert also recommends that the items in your inventory list “include values, balances, websites, contact information, and professional relationships (i.e. financial advisor or CPA).”
Creating a personal inventory sets your estate plans up for success. Plus, as Franco notes, “it's a really good exercise to help people organize what they own and their finances.”
Lambert further supports the importance of taking stock of your assets, stating that it serves two purposes:
“First, it gives you an idea of what decisions you need to make and the steps to take going forward. Most estate planning can be done with simple one-page forms provided by the institutions you do business with. Your inventory serves as a checklist of sorts. Second, in the event of your passing, the executor you named knows exactly who to call and how to get in touch with them, saving valuable time and ensuring nothing gets missed.”
Once you’ve taken stock of everything in your personal inventory, it makes it much easier for you and your representatives to determine what documents you need to protect these assets.
Which estate planning documents do I need?
57% of respondents without a completed estate plan stated that part of the reason why they didn’t have a plan was that they didn’t know which documents they needed.
Sound familiar?
It may help you to know which documents are commonly included in an estate plan. By and large, the most popular documents that our respondents added to their estate plans were:
It’s important to note that 19% of respondents with estate plans could not remember every document they had in their estate plan. As your estate can change over time, you should update your documents to ensure they reflect your current circumstances.
Nearly a quarter of those who completed their estate plan stated that they didn’t know which documents they needed or which were suitable for them while making their plan.
In addition, 13% of these respondents said they couldn’t understand the difference between documents (e.g., a Living Trust versus a Living Will or a Power of Attorney versus an Advanced Directive). To make matters worse, 6% of respondents also reported they couldn’t understand the legal language or find the correct document for their purposes.
The unfortunate thing about estate planning is that no one can tell you exactly which documents you need without knowing your situation. Even if you hire an attorney, they‘ll need to know your estate planning goals. It all comes down to this:
The estate planning documents you need depend on what you want to accomplish.
Determine your estate planning goals
The first step to determining your goals might be listing who you want to receive each asset in your personal inventory. If someone doesn’t accept an asset and you don’t want to pass it on to someone else, you can make a backup plan. For instance, you may prefer to sell the item or donate it to charity.
Francoise M. Haasch, Founding Attorney and Plaintiff Personal Injury Attorney at Fran Haasch Law Group, also recommends “[checking] off each item as you go to ensure you don’t repeat gifted assets or items.”
As you make these choices, you’ll likely end up having conversations with your beneficiaries and family that will help guide your final decisions. Vaillancourt states:
“When you are working on your plan, communicate with your family and friends about your choices. This not only reduces potential conflict in your estate but could help others create a plan, too.”
Becky Cholewka, Founder and Managing Attorney of Cholewka Law, also recommends sharing your goal of wanting to complete your estate planning with a family member or friend.
“Someone who has completed a plan may be a great cheerleader. Someone who also wants to accomplish the same goal may encourage you along the way!” she says. Furthermore, Cholewka recommends “[asking] someone to keep you accountable for each action step” to help you complete your estate planning.
Utilize resources and experts to figure out which documents you need
Take a look at the table below, which lists some examples of goals and the documents that can help you achieve them:
| 'I want to' | Documents you may need |
| Specify what happens to my assets after I pass away | Last Will and Testament or Living Trust and Pour-Over Will |
| Appoint a guardian for any minor children in case I pass away | Last Will and Testament |
| Appoint a caretaker for my pets if I pass away | Last Will and Testament |
| Leave precise instructions for when or how beneficiaries will receive an inheritance | Living Trust or Last Will and Testament |
| Protect my beneficiaries’ inheritances from creditors, or other third-party interests | Living Trust |
| Specify what I’d like done with my remains and any wishes I have for my funeral | End-of-Life Plan |
| Specify my medical wishes in case I become incapacitated or unable to communicate | Living Will |
| Appoint someone to make medical decisions on my behalf in case I become incapacitated or unable to communicate | Medical Power of Attorney |
| Appoint someone to make financial, real estate, and business decisions or dictate care for my family on my behalf when I’m incapacitated or unavailable | Power of Attorney |
Why should I make an estate plan?
Another reason respondents cited for not having an estate plan was that they hadn’t had the time to create one. We think that highlighting the most important reasons why you should make a plan will help you carve out the time to do so.
So, why did some of our respondents make an estate plan?
The top reason was, by far, “I wanted to make handling my assets as easy as possible for my loved ones after I pass away.”
| Reasons why respondents made their estate plan | Percent of respondents that chose that reason |
| I wanted to make handling my assets as easy as possible for my loved ones after I pass away. | 54% |
| I wanted to control how my assets (i.e., money, property, real estate, etc.) were distributed after my death. | 29% |
| I wanted to specify a guardian for my children in case I pass away before they are 18. | 6% |
| I wanted to make sure someone could act on my personal or my business’s behalf if I became incapacitated. | 4% |
| I wanted to make sure my medical treatment wishes were followed if I became seriously ill or unable to decide for myself. | 4% |
| I wanted to specify how I wanted my remains handled or how I wanted my funeral held. | 1% |
The most crucial advice experts provided is not to put off your estate planning until you’re older or until you think you have “substantial assets.” It’s crucial to complete your estate planning when you’re young because you never know when an emergency or accident could cause you to need these essential documents.
Cholewka summarizes the issue of estate planning well:
“Procrastination and not knowing where to start are always the top reasons people have not created an estate plan. But at the end of the day, those are merely excuses to kick the proverbial can further downfield. Unfortunately, none of these excuses will prevent a tragic car accident or medical emergency. So how do we get from “I’m thinking about it” to “just do it?” You have to create a plan with structure and be disciplined to follow it.”
Somita Basu, Esq., Co-founder and Partner of Norton Basu LLP, has a similar recommendation:
“If you’re too busy to complete an estate plan, the good news is that you’re alive and well. However, all too often, we see the consequences of delayed action when a client contacts us with a terminal diagnosis or a loved one who has suffered a serious accident. This difficult and challenging time is only made more stressful by tackling estate planning considerations and scrambling to get documents in order. The optimal time to memorialize your wishes is before it becomes urgent.“
Lyle Solomon, Principal Attorney at Oak View Law Group, notes that making an estate plan is not just for you but for your loved ones:
“It is undoubtedly tempting to put off creating an estate plan. However, having a well-thought-out plan is well worth the time and money it will take to build. You'll give your loved ones the authority and direction they need to overcome a difficult situation. That way, you can rest assured that you stay prepared if something unexpected occurs.”
It’s easy to come back and modify your estate plan as your life and assets change. Update your documents so they reflect the current condition of your estate. That means returning to your estate plan after major life events such as:
- Buying property
- Getting married
- Having a child
- Separating from a spouse
- Divorcing a spouse
- Losing a loved one
As Basu says, “It is a good idea to review your estate plan over time, so remember to check in with your attorney as the years go by to ensure your documents remain fresh and relevant.”
Moreover, experts emphasize not getting hung up on estate planning myths or the uncomfortable emotions they might initially bring up. Even estate planning experts know that the process can be stressful.
Haasch states, “Planning an estate can bring on feelings of uneasiness and anxiety.” However, she reminds you that an estate plan isn’t just for you:
“The goal of an estate plan is to ensure your family does not have to sort through a mess after you pass.'
As Lambert states:
“Most people think estate planning is only for the wealthy, so they give little thought to it. While estate planning can be about reducing the impact of death taxes, it's more about ensuring you have the final say on what happens to your assets instead of the state, banks or family members who may not share your values.”
Franco adds that estate planning “is not as hard as it seems.” She continues, “It is a process, but it doesn't need to take a ton of your time. It is really just about taking those steps.”
No matter your age or financial status, having a complete estate plan is the best way to ensure your wishes are followed. Furthermore, creating an estate plan protects your loved ones, and it takes the stress off of them in times of emergencies or loss.
So, are you ready to tackle your estate planning and help us increase the percentage of Americans with completed estate plans in 2024?
Let’s get started!
The 2023 Estate Planning Report Infographic
Related Articles
