If you have not yet made time for estate planning or if you have put off updating an existing plan, you are not alone. Recent research published at caring.com indicates that although more than half of Americans think a will is important, less than 33% have a will or a trust in place. That means 2 out of 3 Americans are not covered with an estate plan. This article will highlight other interesting findings from the caring.com research and suggest ways to move forward with estate planing.
What are some of the most interesting findings from the 2022 study?
- 50% more young adults now have estate planning documents since pre-pandemic
- The typical reason cited for not estate planning amongst young people is lack of assets
- Other reasons cited for not estate planning are
- Not knowing how to do a will
- Concerns that the process is too expensive
- For those with the highest earnings, the main reason for delay is just simply procrastination – not getting around to it
- Higher education correlates with seeking estate planning – about half of those with a postgraduate degree have a plan in place
Inflation concerns may be another key factor for estate planning delay in 2022.
- Possibly fear that resources in the now are not sufficient to worry about the future.
- A recent study found that 9 out of 10 Americans are concerned about inflation. https://www.nytimes.com/2022/02/25/business/economy/inflation-americans-worry.html
What does the research show are the first steps to estate planning?
- The most common first step that respondents indicated was talking to a loved one.
- Online research was also an initial step.
What are the three main estate planning documents highlighted in the caring.com research?
- Wills – this is the most common type of estate document according to the survey. It can be used to divide property, guardianship, debts and more.
- Trusts – according to the caring.com article, trusts are useful to avoid probate, provide more support than wills for larger estates or for those who might expect a disability. A trust can take effect during life, as opposed to a will, that determines rights at death. A trust is typically more complex and expensive than a will.
- Advanced directives – this provides a person’s wishes regarding end of life or what happens in the event of incapacity. They are intended to take effect during life, not at death. The survey found that only 1 in 5 people knew what an advanced healthcare directive is, which indicates lack of education on this important estate planning component.
Consult the Law Office of David Knecht
If you are one of the many people in California who need to get started on estate planning, then you would benefit from using an attorney with experience in estate planning in California. Contact Law Office of David Knecht. Call us at 707-451-4502. We have extensive experience with estate planning and can help you.
