Recent Trends in Estate Planning & Expert Warnings

Financial experts and policymakers have expressed concern regarding the decrease in the number of Americans who possess wills in recent estate planning news. According to a recent survey conducted by Caring.com, the number of Americans who possess a will has decreased by 6% from the previous year, to 32%. Economic uncertainty, inflation, and misconceptions regarding the necessity of an estate plan are all contributing factors to this trend. The financial pressures, particularly among lower-income Americans, are a significant factor, as many individuals believe that they do not possess sufficient assets to justify estate planning. In lower-income households, the estate planning rate has decreased by 16% since 2020, and nearly 40% of respondents who did not have a will reported that they did not believe estate planning was necessary due to their limited assets. Furthermore, the increasing costs of living have discouraged numerous individuals from prioritizing long-term planning, as they have an impact on their immediate financial objectives.

Conversely, certain organizations are defying the prevailing pattern. Since the pandemic, there has been a 50% increase in estate planning among younger adults (ages 18-34) in response to increased engagement. This change is indicative of the increasing prevalence of digital estate planning options and the increased awareness of their increasing influence, which facilitate the creation of legal documents such as wills and trusts at a lower cost. This demographic has identified financial stability and family growth as their primary motivations for securing their affairs.

These results emphasize the increasing necessity for public education regarding estate planning. According to experts, a will can offer crucial safeguards that extend beyond asset distribution, such as guardianship instructions for minors and decisions regarding digital assets and healthcare. Patrick Hicks, General Counsel at Trust & Will, underscores the importance of an estate plan for all individuals over the age of 18, irrespective of the size of their assets. This plan provides a sense of control and security over one’s legacy and the future of their family.

Estate planning should be a priority for all individuals, not just the affluent, as it addresses not only financial distribution but also critical personal and family decisions. This recent survey serves as a reminder of this.