A recent study from Caring.com revealed that 58% of adults in America do not have a will or a trust, critical estate planning tools. The study also revealed that the percentage is even higher among people who could benefit from estate planning the most: parents of minor children. A total of 64% of them have no formal estate plan.
Not surprisingly, the study reveals that the older a person is, the more likely they are to have an estate plan in place. However, even among people 72 and older, almost 20% have not done the estate planning needed to protect their hard-earned assets and more.
Why Do People Avoid Estate Planning?
An article from USA Today that examines the results of the study states the reasons why people tend to avoid creating an estate plan. Many think they do not have enough assets, while others say they simply do not have the time. The article states that, for many, the real reason is because it is difficult to confront the thought of the end of one's life.
Why Estate Planning Is Important
Most people understand that creating a will or trust is important because they dictate how your assets will be passed on. However, a strong estate plan can do much more than that. It can keep your estate out of probate and reduce or avoid estate taxes. An estate plan can provide financial and medical directions in the event of incapacity. An estate plan can include instructions for guardianship of minor children.