Many American adults delay or postpone estate planning. Research shows that 56% of them have zero estate planning documents. The significance of an estate plan is widely known. Public awareness campaigns, financial education and media coverage continually highlight the effects of someone dying without a will.
So, if people understand the importance of estate planning, why do they postpone it?
The discomfort of confronting mortality
Understandably, it can be challenging to address the possibility of becoming incapacitated and confronting one’s own mortality. If you are experiencing this discomfort, consider viewing the process differently.
Estate planning does more than prepare for incapacitation and death. It helps you distribute assets and protect your legacy as you wish. It allows you to provide medical care preferences that will be followed when you are unable to make decisions. It allows you to choose a trusted person to manage your financial affairs. It lets you name a suitable guardian to raise your child if anything happens to you, and so on.
Lack of enough assets
Some people postpone estate planning because they don’t have enough assets. Estate planning is not only for the wealthy. You can protect your existing assets with an estate plan and update it as you acquire more.
Perceived complexity and cost
It’s not uncommon for people to avoid estate planning because they are intimidated by the process. They believe it’s too complicated, requiring someone to gather many documents and deal with legal jargon. Some also believe estate planning is too expensive. Thus, they choose to avoid it.
Working with professionals helps you take the right steps from the beginning, easing the process. Moreover, you can start with a few documents and update your estate plan over time.
Not having an estate plan can expose you and your loved ones to various complications. Get more information on how to start the process without feeling overwhelmed.