A recent survey by Caring.com shows that nearly 67% of Americans do not have an estate plan. Procrastination was listed as the number one reason Americans don’t have a will, with 40% saying they haven’t gotten around to it. Of those who don’t have a will, 33% cited they don’t have enough assets to leave behind – making this the second most common reason why people neglect estate planning. 12% stated they don’t have a will because they don’t know how to get one, and 13% think that the estate planning process is too expensive. In my experience speaking with people, I often hear these same reasons for people not having a will.
Thinking about and planning for your eventual death isn’t something most people are excited about, and we all think we’ve got all the time in the world to get our affairs in order. But unfortunately, we don’t know what our future holds, so putting off something that can prevent a mess for your family should be something we move to the top of our “to do” list.
One of the things we love about estate planning is helping people think through all of the possible scenarios that could occur, and what effect they could have on their family. Through this process, we uncover what is truly important to them and how they would like things handled if something happens to them. Not only do we discuss their priorities and goals for how they want their assets passed along, we also talk about family dynamics and potential conflicts. Additionally, we talk about all of the things they would never want to happen, like the people they wouldn’t want making decisions for them or raising their children. This is all part of the comprehensive estate planning process.
Estate planning isn’t just about who gets what when you die. It’s about planning to make sure your family is taken care of in the event of your death or if you have a serious injury or illness. Estate Planning is something that makes sense for every person or family, regardless of age or amount of wealth. And it’s not something that should be handled “when I get around to it.” It should be taken care of as soon a s possible. Here’s why:
- It ensures you’re able to take care of your loved ones. There are a range of laws and complexities that can impact how your money is distributed to your loved ones upon your passing. Meeting with an estate planning attorney can help avoid unnecessary delays or expenses affecting your ability to provide for your loved ones through your estate.
Standard estate administration proceedings take approximately 12-18 months to complete, and they can be stressful and confusing for your already grieving family. To the contrary, sitting down and discussing an estate plan with your attorney and financial advisor can allow assets to be distributed to your beneficiaries almost immediately after a loved one passes.
- It’s the best (and easiest) way to ensure your wishes are upheld. If you become incapacitated due to serious illness or injury, the burden falls on your loved ones to make decisions on your behalf. And they might not agree, which could lead to conflict and even court. Similarly, losing a loved one is stressful, and while you may have casually shared your wishes with a family member or friend, in the chaos of days following someone’s passing, it can be easy to forget or “mis-remember” your wishes. There could also be conflict among family members about what should be done. Legally documenting your wishes in your estate plan is a quick and easy way to ensure your wishes are known and upheld.
- It can help you minimize tax liabilities. Small changes to your estate can make a major impact on the amount of liabilities taxed to your estate upon your passing. Following are just a few of the areas your estate planning attorney should review:
- Potential liability for “death taxes.” These are taxes imposed at the federal and state level that your estate could owe after your death.
- Checking beneficiaries on accounts ensures that all assets will pay to the appropriate individuals and that assets will not pay out to pre-deceased relatives/spouses which can cause horrible tax consequences as those items would now be payable to the decedent’s estate instead of their children, etc.
- Making sure your assets are titled properly to ensure they pass to the people you want the way you want.
- Peace of mind. This is perhaps the most important part of completing an estate plan. If something unexpected should happen, having an estate plan means you don’t have to worry about what will happen when you’re gone because you have put everything in order to allow your family to avoid chaos and handle things during a very difficult time. An estate planning attorney can also provide peace of mind regarding long-term care planning or special needs planning if that is something that needs to be addressed in your family.
- You just never know what can happen. Sometimes life throws us curve balls. Having a comprehensive estate plan can help you and your family handle some of those curve balls, and remove any undue burdens that are associated with them.
To discuss whether you should complete an estate plan, contact us for a free 15 minute consultation.