3 Reasons Most People Don’t Have Estate Plans

You may be surprised to learn that the average person doesn’t have an estate plan. After all, estate planning is incredibly important to everyone. But, in fact, roughly two-thirds of all individuals in the United States haven’t even made a plan.

Why is this? There are numerous different reasons. Three of the most common are explored below.

Procrastination

First and foremost, many people are genuinely just procrastinating, and they plan to write a will in the future. For instance, someone may believe that they can just draft an estate plan in their 60s or 70s. However, this is a risk because it doesn’t account for an unexpected passing. It’s often better to make an estate plan at a younger age and then update that plan as the years go by.

Confusion

In some cases, people find the process confusing, overwhelming or even intimidating. They don’t know what paperwork they need, how to draft a will or where to file that paperwork when they’re done. In other words, they know that an estate plan is important and they want to create one, but they just need to learn how.

Misunderstandings

Finally, some people don’t draft an estate plan because of a simple misunderstanding. Maybe they believe that estate plans are just for the wealthy, for example, not realizing that estate planning goes far beyond asset distribution. Even if someone doesn’t have significant assets, their family can still benefit from the creation of a medical power of attorney or an advanced directive.

Are you thinking of drafting an estate plan this year? Be sure you know what legal steps to take.