People are often surprised to find out that most people do not have an estate plan. After all, everyone is eventually going to pass away, so their family needs to know what to do with their assets and things of this nature. But the reality is that many people simply don’t have a plan.
Why this happens differs from case to case. Below are three potential reasons.
1. They are procrastinating
The top reason is that they’re putting it off and procrastinating making an estate plan. Often, people will tell you that they don’t have a plan yet, but they certainly anticipate making one in the future. For instance, someone in their 40s may not be as concerned as someone in their 60s with drafting a will.
2. They do not think they have enough assets
One mistake people make is thinking that they have to be extremely wealthy to benefit from an estate plan. But the plan can be helpful even with low asset levels because it allows people to make future medical decisions, set up guardianships, use powers of attorney and transfer family heirlooms that may have significant sentimental value.
3. They are unsure how to start
Finally, many people know that they should have an estate plan and want to create one, but they don’t know what paperwork to use, what documents they need, how to file those documents and much more. This often feels overwhelming to them, so they put it off.
But simply beginning to explore legal options can often show them how straightforward and useful estate planning can be. Those who are drafting a plan just need to know what legal steps to take this year.