An estate plan can be beneficial for anyone, from a young parent to an elderly retiree. These estate plans can help to divide assets among beneficiaries, make medical decisions in advance, establish guardianship for minor children and much more.
However, most people do not make estate plans, and roughly two-thirds of Americans don’t have one right now. One of the major reasons for this is simply that people are procrastinating. They fully plan to write a will in the future, but they haven’t gotten around to it yet. What are some other reasons why they don’t take this step?
Asset levels
One common myth is that estate planning is only useful if you’re very wealthy, so people with lower asset levels won’t make a plan. But this ignores the fact that an estate plan is useful for dividing family heirlooms, setting up a medical power of attorney and much more.
Confusion over paperwork
Another common issue is that people aren’t sure how to write a will, how to draft a power of attorney, what documentation they’re supposed to use or where to file it. Rather than seeking the answers to these questions, they just put off making an estate plan.
Believing they’re too young
Finally, many people will simply say that they think they’re too young to need an estate plan yet. Someone may be only in their 30s or 40s, so they don’t anticipate needing a plan until they’re in their 60s or 70s. But the truth is that it’s often better to make an estate plan at a young age and then simply update it as you get older.
Drafting your plan
Have you been thinking about making an estate plan so that your family has direction if you pass away? Take the time to carefully consider all of the legal options at your disposal.
