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Americans Still Are Not Planning for The After Life

Americans Estate Plan
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Seventy-seven percent of respondents in a recent survey said estate and legacy strategies were important for everyone, not just wealthy individuals, yet only 24% said they had taken the basic step of designating beneficiaries for all of their accounts.

Think Advisor reported on a survey conducted by a financial services firm that revealed good news and bad news about Americans and estate planning strategies. In the article “Americans, Even Advisory Clients, Have a Big Estate Planning Problem: Survey,” the firm Edward Jones found that two-thirds of those with an advisor have not discussed estate goals and legacy plans. That’s the bad news. The good news is that 77% said estate and legacy strategies are important for everyone, not just wealthy individuals.

Most people do understand how a properly prepared estate plan puts them in control of what happens to the people that matter most to them, including minor children, their spouses and partners. It also indicates that they recognize how estate planning is necessary to protect themselves. That means having estate planning documents including medical and financial Powers of Attorney, Advanced Healthcare Directives, a Will, and a Revocable Trust, in place

However, the recognition does not follow with the necessary steps to put a plan into place. That is the part that is worrisome.

Without a proper plan in place, assets could be subject to the costly and time-consuming process of probate, which is a record open to the public. Nosy neighbors, creditors and relatives all having access to personal and financial information, is not something anyone, given the choice, wants to happen. However, by failing to plan, that’s exactly what could happen.

The survey of 2,007 adults showed little sense of urgency to having legacy conversations. Only about a third of millennials and Gen Xers said they’d spoken with their advisors about the future. Surprisingly, only 38% of baby boomers had done so—and they are the generation most likely to need these plans in place in the immediate future.

Where do you start? Meet with an estate planning attorney to create an estate plan. If you haven’t updated your estate plan in three or four years, it’s time for an update. An estate planning attorney can review with you the best estate planning strategies for you, including creating a customized plan to your specific facts, circumstances, needs and wants.

Reference: Think Advisor (September 16, 2019) “Americans, Even Advisory Clients, Have a Big Estate Planning Problem: Survey”