Millionaires Aren’t the Only Ones Needing Estate Plans

Millionaires Aren’t the Only Ones Needing Estate Plans- Even at the relatively tender age of 18, people need estate planning documents, even if they only have a Power of Attorney and Medical Power of Attorney. Once those documents are created, parents or the person named in the POA can update their car registration or pay bills while they are away at college. A recent article from Market Watch, “People think $1 million is the magic number to start estate planning—but it’s much lower,” makes a clear case for estate planning at all stages of life.

Surveys show most Americans are ignoring this advice, in part because they prefer not to think about death and because they don’t think they have enough assets to warrant an estate plan. This leaves their loved ones with a terrible burden when they become incapacitated or die unexpectedly.

Those who die without estate planning must know their wishes won’t be followed. They’ll be leaving more of their money to the state and federal government instead. This wouldn't happen if they wanted to give anything to charity.

A survey from Charles Schwab revealed that people think they need to have $1 million to think about protecting their assets during their lifetime and how they want to pass them along after they die. At the same time, nearly half of the people surveyed said they agreed estate planning should happen before reaching this level of wealth.

Millionaires Aren’t the Only Ones Needing Estate Plans

Almost all people surveyed said they planned to give away, donate, or pass on assets, even though only 57% had a will, and very few said they had an estate plan. An estate plan is a comprehensive plan for the future, including a will, trusts, power of attorney, medical directives and other documents as needed. An experienced estate planning attorney creates such a plan after meeting with couples or individuals and defining their wishes for passing on assets and a plan for incapacity.

Without an estate plan, none of your wishes will be followed. Your family will have to go through an expensive and stressful time of going to court and petitioning the court to name an administrator so they may manage your affairs. By the way, the court is under no obligation to name a family member for this role and could assign it to a complete stranger. Your family will no doubt wonder why you didn’t care for this while living.

Almost all the millennials surveyed said they wanted to give assets away while living, which is nice.  However, they may be more optimistic than boomers about their financial futures. Many older Americans are more cautious, with only 19% planning to gift assets before they die.

Whether you have $1 or $1 million, you need at least the basics of an estate plan: power of attorney, medical directives and a will. The estate plan gives you control over distributing assets and empowers another person to take care of your medical decisions and finances in case of incapacity.

Schedule your phone consultation: THE LAW OFFICES OF CLAUDE S. SMITH, III

Millionaires Aren’t the Only Ones Needing Estate Plans

Reference: Market Watch (Dec. 7, 2024) “People think $1 million is the magic number to start estate planning—but it’s much lower”