According to 2024 surveys by Caring.com and Ameriprise Financial, a shocking truth is emerging: we are falling behind on our estate planning – the Caring.com survey revealed that only 32% of Americans have a will and the Ameriprise survey found that 52% of couples lack estate plans. That means that nearly 7 out of 10 families are unprotected is something unexpected happens and over half of all couples don’t have an estate plan at all. These statistics highlight a dangerous disconnect between understanding the importance of estate planning and taking action.
So what’s causing this dangerous disconnect? It comes down to four persistent estate planning myths that too many people believe–and those myths could leave your loved ones stuck in court, fighting over assets, or even in the care of strangers.
It’s time to set the record straight about common estate planning myths.
Myth 1: “I don’t have enough assets to need an estate plan.”
This type of thinking ignores that estate planning isn’t just about financial wealth. It’s about protecting the people you love, avoiding court and conflict, and ensuring your wishes are honored in life and after death.
If you don’t have a Life & Legacy plan (the type of comprehensive planning I offer) in place, your family members could face:
- Lengthy and expensive court proceedings
- unnecessary taxes
- frozen or inaccessible financial accounts
- family disputes and emotional stress
An estate plan lets you:
- Choose who gets what, when, and how
- Ensure your minor children are raised by the people you trust
- Make your medical wishes clear in the case of illness or incapacity
- Appoint someone you trust to manage your affairs if you can’t
- Pass on your values, stories, and legacy, not just your stuff
An estate plan that works will save your loved ones time and money by ensuring the people who matter know what you have, where it is, how to find it, what to do with it when they do find it. In short, an estate plan is not a luxury reserved for the wealthy; it’s a necessity for anyone who has things that matter, and people who matter. If that’s you, and you don’t have an estate plan (or your plan could be outdated) let’s talk soon.
Myth 2: “My spouse and I trust each other completely.”
Trust is important, but it’s not a plan.
Even if you and your spouse are 100% aligned financially (the Ameriprise survey says 95% of couples trust each other with finances and 91% share financial values), without legal estate planning documents in place, your loved ones could face:
- Probate court delays
- Asset freezes and tax complications
- Legal battles between stepfamilies
- Accidental disinheritance of children from previous marriages
And what happens if both of you pass away at the same time–or your surviving spouse remarries? Without an estate plan, assets could unintentionally be passed to the new spouse instead of the people the deceased spouse loved.
Don’t assume. Create a plan that spells out your wishes and keeps your assets–and your family–safe.
Myth 3: “Estate planning is too expensive.”
The truth is that the cost of not planning is far greater.
Another common misconception is that estate planning is only a luxury reserved for the wealthy because of its perceived high cost. The reality? Avoiding estate planning due to cost concerns can lead to far more significant time and money costs for the people you love down the road. Without a plan, your loved ones may face costly probate proceedings, unnecessary taxes, and legal disputes that can drain your estate and create additional stress for your loved ones during an already difficult time. These costs often far exceed the upfront investment of creating an estate plan.
A Life & Legacy plan offers:
- Clarity on your financial and healthcare decisions
- Protection for your assets and your loved ones
- Peace of mind that your wishes will be followed
- Less cost, less court, less conflict
It’s an investment in your family’s future, not just an expense.
Myth 4: “I don’t need to worry about who would raise my kids.”
Many parents of minor children assume that in the event of their death, loved ones will naturally step forward to care for their children. They might. But will it be the right person?
If you’re a parent of minor children and haven’t created a Kids Protection PlanⓇ, you’re leaving a judge–a stranger–to decide who raises your children. And when a stranger makes the decision about who will raise your kids, it might not be the person you would have wanted. In some cases, the individual granted guardianship could have values, parenting styles, or circumstances entirely incompatible with how you envisioned your children being raised.
Even if you have named legal guardians for your children in a prior will, it may not be enough to prevent court delays or temporary placement with people you wouldn’t choose.
Another important consideration is the financial burden imposed on your children’s chosen guardian. If you haven’t created a Life & Legacy plan, and allocated sufficient funds for your children’s care, even willing loved ones might decline guardianship, leaving the court to make an even more difficult choice.
A Life & Legacy plan alleviates the potential financial burden on your chosen guardians and ensures that your children receive the care and stability they need during an emotionally challenging time.
The real truth is that estate planning is about love, not death
The biggest myth of all? That estate planning is about money and mortality. In reality, it’s about LOVE.
I’ve never heard someone say that they wish their deceased loved one had done less planning. However, I have tons of stories from people about how they wish their deceased loved one had a plan so that they did not have to go through the probate process, or their deceased loved one had a plan that would have avoided family battles, or their deceased loved one had a plan that gave them comfort that they had made the medical decision that the loved one would have wanted.
If you don’t already have one of these stories yourself, chances are you probably will. But with the proper education, beginning with correcting these dangerous myths about estate planning, I believe we can prevent the unnecessary heartache from having no plan.
As a Personal Family Lawyer® firm, I start with education so you are clear on what would happen to your loved ones and your assets if you become incapacitated and when you die. Then we will work together to create a plan that aligns with your values, your goals, your loved ones, and most importantly, that works when you need it to.
We call it the Life & Legacy Planning® process, and once you’ve created your Life & Legacy plan, you can rest easy knowing your wishes will be honored, your loved ones cared for, and your property protected.
If you’re among the 68% of Americans without a plan, you’re not alone–but now you know better.
Book a call with us today to get started: https://packsaddlelaw.com/contact/
This content is sourced from Personal Family Lawyer® for use by Personal Family Lawyer firms and modified by Packsaddle Law PLLC. This material was created for educational and informational purposes only and is not intended as ERISA, tax, legal, or investment advice. If you are seeking legal advice specific to your needs, consult a qualified professional.