You might assume most people have an estate plan. You’d me wrong. A 2024 survey by Caring.com found that 68% of U.S. adults have no estate plan in place, and 40% of those who don’t have one think they don’t own enough to need one.
That’s a dangerous fallacy, and if you take it to heart, this misconception could make your later years far more complicated, as well as make the transfer of what you do own less efficient. In reality, virtually all adults need to have an estate plan in place, regardless of their financial circumstances.
Estate plans are about more than your assets
Most things you hear about estate planning relate to what someone did or did not leave for others. While asset distribution is a key feature of this process, it’s far from the only task a well-made plan should accomplish.
Your health might deteriorate as you age. Or it could do so due to a one-off accident. An estate plan can help you govern what happens if you do get injured or fall severely ill – to some degree, at least. You can specify any particular treatments, such as blood transfusions, which you would not be happy to receive in the event that something goes wrong. You can also name someone as your health care proxy if doctors need to consult someone on a matter that you have not detailed, and you cannot tell them yourself.
Estate planning is not a straightforward process, and it can feel daunting. However, spending a little money to seek legal guidance and create one now will almost certainly pay dividends in the future.