A significant percentage of Americans do not have an estate plan. A survey done by D.A. Davidson & Co. showed that only 34% American adults have an estate plan. That’s one in three people, which means two-thirds do not have it.
Although many people acknowledge its importance, most of them have not drafted any document that protects their assets or loved ones. So, why do Americans procrastinate estate planning?
Avoidance of discussions related to incapacitation and death
Understandably, it’s not easy for someone to think about incapacitation or their own death, let alone prepare for it. People often avoid having discussions surrounding what will happen when they become incapacitated/ die, or what will happen to their minor child when they are unable to raise them.
If fear or discomfort around these topics is what’s holding you back, you can overcome it by viewing estate planning differently.
An estate plan does more than prepare for incapacitation and death. It allows you to distribute your assets according to your wishes, name a guardian for your minor child, appoint someone to manage your finances when you are unable to, choose an agent to make medical decisions on your behalf, state your preferences regarding treatment and so on.
Belief that they don’t have enough money
Another reason behind many people not having an estate plan is the belief that they don’t have enough assets to warrant needing one. Estate planning is not only for the wealthy. Even small estates without a will can lead to disputes among heirs and other complications. You can create a will with your existing assets and update it as you acquire more.
Not having an estate plan can be risky. Get more information about how you can protect your legacy and loved ones.