Why Most People Don’t Have an Estate Plan

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Why Most People Don’t Have an Estate Plan

A recent poll conducted by Caring.com this summer reveals a startling trend: only about 32% of Americans have a will, marking a 6% decline from 2020. This statistic is unsurprising to me as an estate planning attorney. I frequently encounter people who acknowledge they need an estate plan but haven’t taken action. If we polled how many people think they need an estate plan, the percentage would undoubtedly be much higher. It’s not about ignorance of the importance of estate planning—people are aware—but procrastination often gets in the way.

Let’s explore why estate planning is critical and address common reasons people delay. If your estate plan has been on the back burner, maybe it’s time to move it to the front.

The Cost Factor

Many people believe estate planning is too expensive, and I understand the apprehension. However, it’s important to weigh the cost of an estate plan against the potential cost of not having one. Estate planning isn’t just about deciding who gets your belongings after you pass away. It’s about ensuring decision-makers are in place if you become incapacitated. What happens if you have a stroke, suffer a head injury, or develop dementia? Without a plan, your family could face chaos, legal battles, and significant financial strain.

Consider this: nursing home care can cost $150,000 per year. According to the Alzheimer’s Association, one in three people will develop dementia. Without a proper estate plan, your assets could be quickly depleted. Trusts, especially irrevocable asset protection trusts, can shield your home and savings from long-term care expenses. Investing in an estate plan now can save you and your loved ones hundreds of thousands of dollars in the future. It’s not just an expense; it’s an investment in peace of mind.

Simplifying the Process

Another reason people delay estate planning is confusion about where to start. That’s where we come in. Our Three Secrets Workshop simplifies estate planning concepts using relatable examples, like our “little red wagon” analogy. We break down the differences between wills, trusts, and other tools so you can make informed decisions.

Historically, estate planning involved multiple one-on-one meetings with attorneys, driving up costs. To make the process more accessible, we’ve shifted to an educational model. Our workshops teach you the fundamentals in a group setting, allowing us to offer comprehensive estate plans at a lower cost. This approach ensures you’re not only saving money but also gaining the knowledge needed to protect your legacy.

Choosing the Right Documents

Another common concern is not knowing which documents to include in an estate plan. Most people are familiar with wills and powers of attorney, but these may not be sufficient for your needs. For example, a trust can help you avoid probate and protect assets from long-term care costs. Asset protection trusts, in particular, are ideal for retirees or soon-to-be retirees who want to safeguard their homes and savings.

The truth is, estate planning isn’t one-size-fits-all. Many people feel overwhelmed by the options and freeze, doing nothing as a result. Our process eliminates guesswork by tailoring a plan to your unique circumstances. Instead of choosing a plan based solely on price, we help you create the right plan for your family.

Overcoming Intimidation

Some people are intimidated by the idea of working with lawyers. This is evident when clients arrive at our office dressed to the nines, assuming they need to impress us. Rest assured, our office culture is approachable and business casual. We’ve adopted a no-tie policy to create a welcoming environment. You don’t need to feel intimidated; we’re here to help.

Facing the Uncomfortable

Estate planning forces us to confront unpleasant realities, such as death or incapacity. While it’s not fun to think about, it’s a responsibility we can’t ignore—especially as parents. Your primary job as a parent is to ensure your children are cared for, even if you’re no longer around. A well-structured estate plan ensures the right people have the resources to support your children’s growth into responsible adults.

Even if you don’t have young children, your life savings represent years of hard work. Without an estate plan, your legacy could unravel in disputes over money or caregiving decisions. I’ve seen close-knit families torn apart because of estate planning mistakes. These conflicts are preventable if you clearly outline your wishes in advance.

Protecting Your Legacy

For retirees or those nearing retirement, protecting your assets is paramount. Placing your home in an asset protection trust can safeguard it from long-term care expenses. You’ve worked hard to build a nest egg; don’t risk losing it all because of a lack of planning.

Take Action Today

If this resonates with you, I encourage you to attend one of our free Three Secrets to Protect Your Legacy workshops. We’ll cover:

  • The legal tools needed for effective estate planning
  • The differences between wills and trusts
  • How to protect your assets from long-term care costs

Don’t let procrastination or confusion stand in the way of securing your family’s future. Visit sechlerlawfirm.com/workshops to register and take the first step toward peace of mind.

Estate planning may not be fun, but it’s one of the most important investments you’ll ever make. Let us help you create a plan that protects your legacy and ensures your loved ones are cared for—no matter what the future holds.