If you feel like you need an estate plan but do not know where to start, you have a lot of company. According to CNBC, only about 33% of all Americans have an estate plan. Many people know the importance of an estate plan, but many put it off for various reasons.
Unless you have a real-life emergency or event that makes you think about your lack of estate plan, you may not automatically want to think about it. However, putting together a will, trust or other documents to prepare for a future where you may not have independence can protect you and your loved ones.
Worries over not having enough assets
One of the most common reasons people do not have an estate plan is that they do not feel like they have enough assets. There is a misconception that wills and trusts are tools for the wealthy. Whether you have a large or modest estate, you should control who receives your assets if something happens to you.
The cost of your estate plan also depends on the type of estate planning and the size of your estate. Assets are not the only factor either. You should also determine who can make financial and medical decisions if you become incapacitated.
Procrastination because of the process
The main reason that people do not have an estate plan in place is that they put it off. Everyone always feels like they will have more time later. Unfortunately, that is not always the case. It makes sense to discuss your estate plan as soon as possible to prepare for unexpected events and get it out of the way.
You do not need a lot of assets to prepare for a future where you cannot make your own decisions.