Logically speaking, it certainly makes sense for everyone to have an estate plan. There will come a time when your family needs documentation relating to the end of your life. This is an inevitability for everyone, and planning in advance can help things go smoothly.
Despite this, studies have found that two out of three Americans do not have an estate plan. What are some of the reasons why this happens?
They are ignoring non-financial estate planning tools
One problem is that people think that estate planning is just for money and assets. But there are other tools that you can use, such as creating an advance directive to make medical decisions or setting up a power of attorney so that someone can make your legal decisions if you’re incapacitated. Once you know about all the options you have, you can see how estate planning is useful for anyone.
They think they can do it later
Perhaps the biggest reason that people haven’t made an estate plan isn’t that they are not going to. They are just assuming that they can do it later. There are a lot of people in their 40s and 50s, for instance, who believe that they are still too young. But there are actually estate planning tools for people of every age. Having a plan in advance helps protect against the unexpected.
The whole process feels daunting
Finally, there are many people who want to make an estate plan and understand how useful it can be. They just think it sounds daunting and they’re not sure where to start. If you fall into this camp – or any of the others – it’s important to know exactly what legal steps you can take.