You may have heard that most people don’t have an estate plan. It’s true. The majority of Americans have no plan in place for when they pass away.
In trying to understand this phenomenon, where everyone knows they will eventually need a plan but most people (55% don’t have a plan) opt not to create one anyway, you have to ask yourself why they don’t do it. We know why people do start their estate planning: to provide for their heirs, to save on taxes, to prevent disputes, etc. But why is it that these benefits aren’t enough for most people to get started? A few potential reasons include:
- They are not sure where to begin and, lacking that information, they simply do not begin even though they want to.
- They assume that they should make an estate plan later in life, but they’re too young to need one yet.
- They do not feel like the amount of assets they own makes it necessary to create a plan.
- They are going to do their estate planning, but they keep procrastinating it and putting it off for another day.
- They think that it is going to cost too much.
- They do not know that estate planning goes far beyond just writing a will and that there are many valuable tools they can consider.
These are just a handful of examples, but they show why people often make excuses and fail to plan. Don’t fall victim to these excuses yourself. If you know you want to make an estate plan, take the time to find out what options you have.