Caring.com conducts annual surveys to get a feel for the percentages of American adults that have estate plans in place. They release the results during the early portion of the year, and they have recently shared their 2023 findings. We will take a look at some of the important takeaways in this post.
Overall Preparedness
The percentage of adults with estate plans has remained constant for the most part over recent years with slight fluctuations. This time around, 34.1 percent of all people surveyed had wills or trusts. Last year, the figure was 33.1 percent, so it is trending modestly in the right direction. At the same time, three out of four people are not ready for something that is definitely going to happen to all of us.
Most Older People Are Remiss
When you look at the overall figure, it is natural to assume that younger adults are not going to prioritize estate planning. This is definitely true, and the preparedness percentage is less than 30 percent for people that are 54 years of age and younger. However, it is just 46 percent for the oldest group, so most people 55 and up have not recorded their final wishes.
Importance of Planning
You should have an estate plan in place as soon as you become a self-supporting adult. Granted, a single person with limited resources may not be taking a huge risk to go without a plan. At the same time, the playing field changes considerably as soon as others are relying on you.
Marriage will certainly make estate planning more important, and when you have children, it becomes an absolute must. Estate planning for a young family should include the selection of a guardian for the child or children in a simple will. You can use a trust to empower a trustee that would be able to manage assets on behalf of the minor child if it becomes necessary.
When it comes to the financial resources that would be needed, life insurance can provide a solution. Term life insurance, which is coverage without a cash value, is quite inexpensive for younger people. The trust that you establish can be the beneficiary of the life insurance policy.
Prevent Intestacy
If you were to pass away without an estate plan, you would die intestate. Under those circumstances, the court would enter the picture to supervise during the estate administration process. They would name a personal representative to administer the estate during probate.
This is a necessary safeguard, but a lot of problems can ensue. Since your true wishes have never been stated, people in the family may have disagreements. Ultimately, after debts are paid, the court will order the distribution of the estate under Connecticut intestacy laws.
There is a very real chance that people you would have never left out would be disinherited when these laws are applied. In addition, even if no one is completely disinherited, the distributions may not be consistent with your actual wishes.
Where Do You Begin?
A lot of unprepared people that responded to the survey stated that they know estate planning is important. Many of them were frozen with inaction because they simply did not know where to begin.
This is understandable in a way, but this is where we can enter the picture to simplify the process. When you choose our firm, we will get to know you and gain an understanding of your family dynamic and your objectives.
After that, we will provide recommendations based on the facts. When you make your final decisions, we will put together a tailor-made plan that is ideal for you and your family. As time goes on, we will be ready to help make necessary adjustments if circumstances change in any way. Plus, we can be called upon to assist your family during the estate administration process.
If you are ready to get started, you can schedule a consultation at our Glastonbury or Westport, CT estate planning offices if you call us at 860-548-1000. There is also a contact form on this site you can use to send us a message.
Mr. Horowitz was awarded his Juris Doctor degree with honors from the University of Connecticut School of Law. While attending law school, Mr. Horowitz received the American Jurisprudence Award in Legal Ethics and the Nathan Burkan Award.
After graduation from law school, Mr. Horowitz continued his legal education at New York University School of Law where he received a Post Doctorate Law Degree in Taxation. He has also recently received a national achievement award.
Mr. Horowitz is admitted to practice before all the state courts in the State of Connecticut and the United States District Court.
Mr. Horowitz was selected for Super Lawyers in 2021.