Most people understand that estate planning is helpful and will eventually be necessary. Maybe they’ve had a grandparent pass away, so they know how the estate plan was used to distribute assets or make medical decisions.
At the same time, most people don’t have an estate plan in the United States. If they know that it’s important, what are some of the main reasons that they put off making this plan?
Asset levels
First, some people think they don’t have enough assets for estate planning to make sense. They think they need to be rich to have an estate plan. It’s important to remember that estate planning can be helpful even for those with a relatively low net worth. The estate plan still lets people codify medical decisions for the future, passes sentimental items to beneficiaries and much more.
Age assumptions
Another common reason people give is that they just don’t think they’re old enough to make an estate plan. They know that their grandparent had a plan, so they assume that this is something they’ll do when they are a grandparent. The problem with this perspective is that, while they may live into their 70s, 80s or beyond, there is no way to know for sure.
Complicated paperwork
Finally, some people say that the paperwork seems complicated, confusing or overwhelming. Maybe they know that they would benefit from a medical power of attorney, for example, but they have no idea what documentation they need or how to file it.
It is so important for people to understand what legal options they have and what steps to take when creating an estate plan. Having professional estate planning guidance will help.