Why Everyone Needs an Estate Plan
The belief that estate planning is only for the wealthy is one of the most damaging myths in financial planning. This misconception has led to a staggering reality: 68% of Americans lack a will, while 32% of Americans have an estate plan in 2024, a 6% decline from 2023. The question is, does everyone have an estate? Absolutely – and everyone needs a plan to protect it.
Debunking Common Estate Planning Myths
Myth #1: "I don't have enough assets to need estate planning." Reality: If you own a car, have a bank account, or possess any personal belongings, you have an estate. Without proper planning, even modest assets can get tied up in probate court, creating unnecessary stress and expenses for your loved ones. Estate planning 101 isn't about the size of your wealth – it's about protecting what matters most to you and your family.
Myth #2: "Estate planning is too expensive." Contrary to popular belief, basic estate planning is surprisingly affordable. A simple Will for a single individual often costs between $500 to $750, while other related estate planning documents, such as a power of attorney, health care proxy or living will often cost between $100 and $300 per document. Obviously, more detailed estate planning will be more expensive, but when you consider the fact that the probate process can often take years and cost well over $5,000 to $10,000, the cost of proper estate planning is a wise investment.
Myth #3: "I'm too young to worry about estate planning." The statistics are sobering: Over 41% of individuals (18-34) and 34% of individuals (35-54) have never had a conversation about estate planning with anyone. Age isn't the determining factor – life circumstances are. Whether you're a new parent, homeowner, or simply want to ensure your wishes are respected, there's no "too young" for basic planning.
Essential Documents Everyone Needs
When considering what documents are needed for estate planning, the basics include:
Last Will and Testament: Directs asset distribution and names guardians for minor children
Power of Attorney: Allows someone to handle your financial affairs if you become incapacitated
Healthcare Directive: Outlines your medical wishes and appoints a healthcare proxy
HIPAA Authorization: Permits designated individuals to access your medical information
Even after you have created and signed your Last Will and Testament, it is important to understand that its terms may not be appropriate for the rest of your life. While wills don't expire, they should be reviewed every 3-5 years or after major life events like marriage, divorce, or the birth of children to make sure their provisions are up-to-date and still reflect your wishes for the distribution of your assets upon death.
Making the Process Manageable
When meeting with an estate planning attorney, important questions to ask an estate attorney include:
What specific documents do I need for my situation?
How much does an estate attorney charge for a basic package?
How often should I update my plan?
What happens if my spouse dies before I do, I move to another state, or we get a divorce?
Getting Started with Klausner Cook, PLLC
Schedule your free consultation today. The peace of mind that comes from having a proper plan in place is invaluable, regardless of your net worth. Don't let myths prevent you from taking this critical step in securing your family's future. Start today by consulting with our estate planning attorneys to discuss your specific needs. Your future self – and your loved ones – will thank you.
Disclaimer: The information in this blog post (“post”) is provided for general informational purposes only, and may not reflect the current law in your jurisdiction. No information contained in this post should be construed as legal advice from Klausner Cook, PLLC. or the individual author, nor is it intended to be a substitute for legal counsel on any subject matter. No reader of this post should act or refrain from acting on the basis of any information included in, or accessible through, this post without seeking the appropriate legal or other professional advice on the particular facts and circumstances at issue from a lawyer licensed in the recipient’s state, country or other appropriate licensing jurisdiction.