Here are some thought-provoking statistics as to why people avoid estate planning.
Every year, thousands of Americans neglect to create estate plans. There are various different justifications people utilize to avoid estate planning, such as not having enough time and the cost being excessive.
In fact, 17% of those with no estate plan claim they do not have enough assets for an estate plan; 9% do not want to think about dying or becoming incapacitated; 8% believe their estate plan will be taken care of appropriately without an estate plan; and 7% do not know what an estate plan is. If you find yourself in any of these categories, it is time to start rethinking your reasons for not having an estate plan.
However, despite these excuses, only 18% of Americans who do not have estate plans believe that it is unnecessary to have one. This statistic shows that estate plans are viewed as valuable and important and should be something that everyone should have.
Even more striking is that 75% of Americans with minors will leave guardianship to the court. Wouldn’t you rather have an estate plan that specifically states who will take care of your children than leave that decision up to people you don’t know?
An effective estate plan will help you avoid probate. On an estate valued around $1,000,000 dollars, the probate fees are $46,000. Generally speaking, probate can cost up to 5% of a typical estate’s value. Estate planning can literally save you tens of thousands of dollars down the road.
It is hoped that these statistics illuminate people’s perceptions of estate planning and why they avoid it. Nonetheless, the overwhelming majority (95%) of people want their property transferred to the person of their choice. If you are one of those people, then make sure to get your estate plan started today!
If you would like to talk about setting up an estate plan to protect you and your loved ones, please give me a call at (858) 792-3444.