You may find that estate planning is not quite as common as you may have assumed. It makes sense that everyone would want to write an estate plan eventually, but studies tend to find that only about a third of Americans have actually done so. Most people do not have an estate plan at all.
This can create some significant problems for family members when someone passes away. So why is it that people do not write wills?
1. They are not sure where to start
One common issue is that people just are not familiar with the process. They do not know what documentation they need. They are not sure how to draft a will or where to file it. Many people are excited to write a plan once they simply understand what steps they need to take first.
2. They do not think they have enough wealth
Another common issue is that people think of estate planning as something for millionaires, so they do not believe they have enough wealth for it to matter. The key thing to remember is that even passing a small amount of assets to the next generation needs to be done correctly to avoid conflicts. Plus, estate planning can also be used for things like making medical decisions, so it is not all about assets.
3. They are going to do it later
For many, the issue is not that they do not want an estate plan, but simply that they are procrastinating. They are going to write it when they are older or at a different stage in life. But this is a major risk because they could pass away unexpectedly.
If you have not created an estate plan and are interested in doing so, it is important to know what legal steps to take.
