Many people believe that having a will is only for wealthy individuals, but it can sometimes be an easy way for family members to resolve certain situations. Therefore, estate planning isn’t just for the rich, as a will is a legal document that informs the court and other parties how to manage the deceased person’s assets. Without such a document, loved ones could face legal chaos and financial hardship after the loss of a family member. In fact, according to official data, 40% of people in the United States believe they don’t need a will.
In the Wills and Estate Planning Study, they found that only 32% of people have a will
Depending on social class, this question may vary, but the data reveals a palpable reality. In the Wills and Estate Planning Study conducted by Caring.com, researchers spoke with 2,400 American adults. They found that only 32% of people have a will, despite the fact that a record $84 trillion is expected to be passed down between generations in the coming decades. This is the lowest rate since 2020.
According to the data, it’s not just low-income Americans who think this way
And the reality is stark. Cheryl Fratello, a New York estate planning attorney, recently stated that “you don’t have to be rich to have a messy inheritance.” The fact is, a large portion of the population, around 35%, has declared that they don’t feel they need a will because they don’t have many assets. To this, Fratello responds: “Middle-class families are often the most vulnerable when a loved one dies without a plan.” In any case, according to the data, it’s not just low-income Americans who think this way. Among those earning more than $80,000 a year, one in four said they don’t have enough assets to warrant a will and leave anything to their heirs. So the real question is, how much money do people think is enough to make a will?
If you don’t designate a legal guardian, the court will decide for you
Experts point to several reasons why having a will is beneficial in any personal matter. A will provides instructions on what happens to your minor child or dependent should something happen to you. If you don’t designate a legal guardian, the court will decide for you. In other words, if the deceased has someone in their care, that person would be left without support, and the law would determine their future.
Having a will, for example, allows the deceased to decide what happens to their assets after they are gone. In contrast, without a will, this decision is subject to a legal process known as intestate succession, a default system in which the state decides who inherits what. This system, being subjective to the law, does not reflect the deceased’s wishes. Experts say that even if you don’t feel you have much to distribute, you will likely need to designate the ownership of some of your assets, such as a house, a car, or other valuable possessions.
It’s also important to appoint an executor when creating a will
Ultimately, a will can streamline a process that families typically prefer to avoid. The loss of a loved one can be devastating, so avoiding the time-consuming paperwork and bureaucratic hurdles can be a significant relief. Furthermore, a legally binding will ensures that family members know what you want done with your belongings and why. This minimizes family disputes over inheritance. For this reason, it’s also important to appoint an executor when creating a will; this person will be responsible for distributing your estate. And if you ultimately decide your family doesn’t need a will, you can also leave your assets or estate to a non-profit organization.
