If you’re thinking about making an estate plan this year, you may believe you’re in the minority when it comes to estate planning. You might assume that most people have already done theirs, and so you feel like you’re falling behind.
It’s important to make an estate plan, but the truth is that the majority of Americans don’t have one. You can imagine how risky this is. If they’re incapacitated, their medical team won’t know what type of care to provide. If they pass away, family members may get into disputes over how to divide assets. It may not even be clear who should operate as the estate executor and distribute those assets.
Why don’t people make a plan?
If not having an estate plan is so problematic, why don’t people do it more often? Here are some of the top reasons they give:
- They are unsure where to begin. They may not know what paperwork is required or how to draft a will. It all feels overwhelming.
- They don’t think they need a plan. Often, this is related to wealth, as some people believe that only wealthy individuals need estate plans. This is a misconception, of course, because there are beneficial estate planning tools for those at any income level.
- They’re going to do it later. This is perhaps one of the most common reasons. People are just procrastinating or assuming they can make an estate plan before they pass away in 20 or 30 years.
The clear risk here is that someone could pass away unexpectedly before they get around to making a plan. As such, it’s good that you’re considering your estate planning options. Take the time to look into all of the necessary legal steps to get a plan on file.