Although Washington residents are keenly aware of the importance of estate planning, that does not mean they will immediately move forward with creating a will. Since so many problems can arise because people procrastinated or did not realize the importance of having even a basic estate plan, it is wise to be aware of what can happen if there is no such plan.
Researchers and advocates for having an estate plan conduct surveys to determine which demographics have not taken this step. According to Caring.com, the overall number of people who have a will has been declining for the past four years. Of course, it is important to dig into the information to be fully accurate. This can help those who are unsure of its necessity to understand its importance.
Estate planning numbers are mixed with a notable reduction
In the survey, around two of every three participants stated that they did not have an estate plan. A major reason cited for four in 10 was that they did not think they had enough assets to warrant it. This is a common misunderstanding as to what having a will means. Regardless of how much property a person thinks they have, they frequently have far more than they initially believed. In addition, confusion and problems can ensue with family members no matter how extensive a person’s holdings were if they did not have a basic will.
Around 25% say they do not have a will and have no intention of writing one at all. Forty percent think that it can wait until they have a health issue. These are also missteps that people do not realize can be problematic until it is too late. When a person has a health issue, they could be preoccupied and unable to make clear and cogent decisions with how to allocate their property. They could be incapacitated and unable to make any decisions at all.
Demographically, the numbers have changed in the past few years. Whereas in the past, Black Americans were statistically less likely to have an estate plan, that has changed for the better with the number rising by 19% since 2020 and 6% since 2023. It has been largely the opposite for white people and Hispanics. The former has seen a 3% decrease since 2020 and a 12% decrease since 2023. For the latter, it is 21% fewer since 2020.
On a positive note, people aged 18 to 34 have realized how critical it is to have an estate plan, particularly since the national health crisis in 2020. That number has risen by half since then. Now, around one in four has a will. Those categorized as middle-aged saw a reduction of 10% since 2023. For those who have lower income levels of less than $40,000, the number has reduced by more than 20% since 2023.
Having an estate plan is beneficial for all
This information is especially relevant considering the problems that can come about when people do not have an estate plan. Dying without a will leaves their property at the mercy of the laws for dying intestate. That means people who otherwise might not have received various properties are entitled to it with others who the person would have preferred to get those properties not receiving them.
People avoid creating a will or other estate planning document for myriad reasons. No matter why they have not done so, it is useful to think about it and understand how it can help them and their family. This is true no matter their education, employment, age or other factors. For a full grasp of how to proceed, having advice from experienced and qualified people is a sound decision.