A recent Caring.com survey found that many people view estate planning as essential when they acquire valuable assets like a home or a substantial cash windfall. More than half of the respondents -- 56 percent -- said they don't have a will or trust because some feel they lack enough assets to leave anyone.
But estate planning involves more than things -- it also involves people; your final wishes shape the future for those you love. The best time to plan is when you're healthy and don't face a crisis. Yet, as the survey showed, some age groups are more prepared than others, and certain factors influenced their choices.
At What Age Do Most People Do Estate Planning?
The 18 to 34-year-old survey respondents were more likely to have an estate plan than those age 35 to 54. The younger people had the largest presence on TikTok, possibly influenced by estate planning partnerships there.
The 35 to 54-year-olds, often part of the “sandwich” generation who care for aging parents, were the largest group without an estate plan. They might also be more likely to have experienced major life events that should trigger them to create one.
What Can Motivate People to Create an Estate Plan?
Usually, it's a major life event: when they acquire valuable assets, experience a change in their family (a marriage, childbirth, a divorce), or another milestone like retirement.
The survey takers cited the following motivators for creating a will or an estate plan:
- A medical diagnosis or a health concern
- Retirement or another age-related milestone
- A loved one's death
- The purchase of a home or another major asset
Caring.com reports that birth or marriage ranked among the top reasons the participants had created wills and trusts. Yet many parents didn't have plans to protect their minor children.
These are all solid reasons to create an estate plan. But you don't have to wait for life to happen to act.
Why Estate Planning is Essential
Estate planning is essential at any stage of life. The best time to start is now.
An estate plan prepares you and your loved ones for the end of your life, protecting your property and legacy. It includes the following documents:
- An advance health care directive (AHCD), also known as a living will, lets you define your end-of-life care. Everyone over age 18, at the least, needs one. Before an emergency, an AHCD and a financial power of attorney allow you to name who will make health-care and money decisions for you if you can't.
- A will designates your personal representative, caretakers for any of your dependents, and who should get the assets from your estate.
- A trust – if necessary – generally holds assets for distribution during the creator's life (in case of incapacity) or after their death.
Without a plan, others could make decisions you wouldn't have wanted. Your loved ones could end up shouldering burdens, including debts. But when you plan while you can, your wishes are more likely to be honored, easing and securing the future for you and those you love.
Though it may be complicated, you don't have to do estate planning alone. A skilled estate planning attorney can save you time, guide you through the process, and tailor a legally valid estate plan to your needs. For more information, contact us online or call (207) 377-3966.
