Studies tend to find that most people in the United States have not drafted an estate plan. For instance, some reports claim that roughly one-third of Americans have an estate plan in place. This leaves the majority with no will or other planning documents.
This is an interesting phenomenon, however, since everyone will eventually pass away, and their family could benefit from an estate plan that gives them guidance in things like making medical decisions or splitting up assets. So why do people avoid drafting an estate plan?
They do not know how
Twelve percent of people said they simply were not sure how to draft a will or create an estate plan. They may just find the process confusing, or it may feel too daunting or expensive.
Mistaken beliefs about assets
Interestingly, around 33% of people who do not have an estate plan claimed they did not have enough assets for it to be useful. But this is something of a mistaken belief, as estate planning is not just for the wealthy. You do not need to have $1 million in financial assets. Even just passing down family heirlooms with sentimental value can be done through an estate plan.
They are procrastinating
But the biggest reason, at around 40%, is that people claimed they would eventually make an estate plan, but they had not gotten around to it. They are putting it off. This is something that is very common with young people, as they may assume they do not need to draft an estate plan until they are in their 60s or 70s.
The truth is that creating an estate plan in advance can be helpful at any age. If you have not made your plan yet and you would like to know more about how to get started, it can help to work with an experienced law firm.