Fewer people are writing wills, according to a new study, which suggests Americans are becoming less worried about mortality as the pandemic subsides.
According to the report, only 32% of adults will report having a will in 2024, down from 34% in 2023. 2024 Wills and Estate Planning Survey From Caring.com, an online senior care platform. This number had been steadily increasing since 2020.
Estate planners saw a surge in wills and trusts during the peak of the pandemic, when many Americans were stuck at home and focused on their health.
“We saw an increase during COVID-19, especially in the early stages, as people realized their mortality was possible,” he said. ruben gottlieba partner and estate planning expert at the law firm Greenspoon Marder.
Now that the pandemic has subsided, Americans’ attention has shifted.
Why poor estate planning is bad for survivors
A reduced will can be bad news for survivors.
Experts say almost everyone should have an estate plan, especially if they have children or own a home. People who die without a will can leave their loved ones with a ton of probate problems.
“Everyone needs a will, whether they’re 19 or 99,” says Erin Smith, director of estate planning at Edelman Financial Engines, a financial planning and investment advisory firm. To tell.
Older Americans are more likely to have a will. But many of them don’t have it.
According to Caring.com, 43% of adults age 55 and older will have a will in 2024, down from 46% in 2023 and 48% in 2020. The research builds on his December survey of more than 2,400 adults conducted by YouGov.
This study joins a growing body of research showing that fewer Americans are writing wills.
The percentage of Americans who have a will is decreasing.
According to a 2023 analysis by the Boston University Retirement Research Center, the percentage of households with 70 or more households with wills or trusts has steadily declined. From 2000 to 2020, her share was decreased from 73% to 64%.
This long-term trend reflects the increasing diversity of older America, the researchers found. Older adults are more likely than ever to be black or Hispanic, and these populations are less likely to leave a will than non-Hispanic whites.
But demographic change is only one factor. Americans of all races seem to have a hard time finding the time, money, and motivation to write a will.
In a Caring.com survey, 43% of Americans without a will blamed simple procrastination, and 40% said they didn’t have enough assets to justify an estate plan. Some people say that writing a will is too complicated or too expensive.
“One of the big answers is procrastination,” Smith says. “But if you dig deeper into why, you’ll find out why people procrastinate. People procrastinate because they feel overwhelmed.”
Experts say everyone should have a will
Many financial advisors recommend that Americans create a will as part of a larger estate plan. This plan sets out not only what happens to our assets after we die, but also who will manage our affairs in the event of an emergency while we are alive, among other provisions.
People who die without a will may be left with a big question unanswered: Who will care for their children? Who will send the family home? Some assets are difficult to divide among multiple heirs.
“People with children should probably have a will. People with minor children should probably have a will, just to decide who will care for their children.” Stated. gal wettsteinsenior research economist at the Center for Retirement Research.
However, estate planning takes time and usually costs money. Although complicated, some experts say it’s unnecessary.
“This is more complex than most people realize and more difficult than it needs to be,” co-founder Steve Locksin said. vanillaan estate planning software company.
Do I need an attorney to write a will or estate plan?
The good news, Locksin and others say, is that you don’t necessarily need a lawyer to write a will.
Online estate planning services can prepare a will for an average fee of $160, according to the National Council on Aging, a charity that helps older Americans. The nonprofit organization provides online guide.
“Having a will is better than not having one,” said Jessica Johnston, senior director of the National Council Benefits Access Center. She says: “If the costs associated with hiring a real estate lawyer are a barrier to entry, using one of these tools is a better option than not having a will at all.”
Other probate experts say entrusting your will to an online service could be a mistake.
“Don’t be swayed by price. Get it done right,” and hire a lawyer, Gottlieb said. He said a do-it-yourself will is a bad idea precisely because it is a complicated instrument.
Edelmans-Smith said she reviewed an online will created by a client who had inadvertently disinherited his spouse, directing all assets to be passed on to his children. Online wills may be suitable for some families, but not for everyone, she says.
“People don’t know how complex their situation is until they talk to an advisor,” she says.
Family trust:what is that?I will explain
If someone dies without a will, the state takes over.
In a will or trust, a person directs how their property and other assets will be distributed upon their death. If someone dies without a will, the local court takes over.
People with relatively simple assets (for example, a spouse, a few children, and a modest list of assets) may think they don’t need a will.
However, probate laws vary and it can be difficult to predict who will receive what.
“This is crazy. Every state is different,” Locksin said.
According to the law, if a New York resident dies intestate leaving behind a spouse and their biological children, the spouse will inherit the first $50,000 of the estate and half of the remaining balance, with the remainder going to the children. analysis By online estate planning site Trustandwill.com.
Same scenario in Florida, where the spouse gets everything.
