Surveys conducted in 2024 by Caring.com and Ameriprise Financial revealed a troubling trend: Americans are falling behind on estate planning. The Caring.com survey revealed that only 32% of Americans have a will – a 6% decline from 2023. The Ameriprise survey found that a shocking 52% of couples lack estate plans. These statistics highlight a few things: people aren’t understanding the importance of estate planning, and they aren’t taking action. Why? Let’s look at some common misconceptions and their potentially devastating consequences.

 

“I don’t have enough assets to need an Estate Plan.” FAKE NEWS. 

This dangerously narrow thinking ignores that estate planning isn’t just about financial wealth. It’s about doing the right thing for the people you love so you don’t leave a mess, and about ensuring your wishes for your own care are considered if you cannot make decisions for yourself due to accident or illness.

If you haven’t created a Life & Legacy plan (the type of comprehensive planning I offer), your loved ones could face lengthy court proceedings, unnecessary taxes, and difficulty accessing financial accounts, which could have devastating consequences if bills need to be paid.

It’s also about:

• Ensuring what you DO have goes to the people you want in the way you want (and stays out of the court process);
• Your children being raised by people YOU choose;
• Your wishes for your medical care are honored if you become incapacitated, or if your mind deteriorates;
• Only people you trust are able to manage your finances if you can’t manage your finances yourself, and
• Leaving your loved ones with your most valuable assets – your values, insights, stories, experiences and your love.

Not to mention, a Life & Legacy plan can minimize conflict among your loved ones. When you clearly share your wishes—and maybe even let me help you communicate them to your loved ones—you make it much less likely that there will be any confusion or conflicts. Plus, it makes it more likely that your resources will be used in a way that helps create a better future for the people you care about.

An effective estate plan saves your loved ones time and money. It makes sure they know what you have, where it is, how to find it, and what to do with it—and keeps them out of court and conflict.

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. 

 

“My spouse and I trust each other completely, so we don’t need a plan.” FAKE NEWS.

While Ameriprise’s survey reveals 95% of couples trust each other with finances and 91% share financial values, when couples don’t plan because they trust each other to carry out each other’s wishes, they’re overlooking several essential matters.

In many relationships, one spouse typically takes the lead in managing the finances. As a result, some accounts might be in just their name, leaving the other spouse unaware of all the accounts, unable to access them, or not listed on them at all. This can create significant challenges—and even costly complications—if one or both spouses pass away. Even with a power of attorney in place, it becomes invalid after death, which can leave accounts frozen and inaccessible.

Trust between spouses also doesn’t prevent legal complications or avoid court. Without a Life & Legacy plan, a surviving spouse may face lengthy probate proceedings, increased tax burdens, and difficulty accessing accounts. This strain can damage relationships and deplete assets meant for heirs. Even worse, if both spouses die simultaneously, the complications can be significant, especially if the spouses have children from prior marriages or minor children. 

Another potential issue arises if the surviving spouse remarries. Without an estate plan, assets could unintentionally be passed to the new spouse instead of the people the deceased spouse loved. In some cases, children may even be accidentally disinherited, leaving them without the financial support their parent had planned to provide.

 

“Estate Planning is only for the super-rich.” FAKE NEWS.

Another common misconception is that estate planning is 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.

Beyond the financial aspect, the peace of mind that comes with knowing your loved ones are protected is invaluable. A Life & Legacy plan ensures that your wishes are carried out, your loved ones are cared for, and potential conflicts are minimized. By addressing these matters proactively, you save the people you love from emotional and financial burdens, making Life & Legacy planning one of the wisest and most compassionate investments you can make, as well as the best gift you can give to the people you love.

 

“My kids will just go to my parents (or friends, siblings, insert other person here), so I don’t need to worry about that.” FAKE NEWS.

Many parents of minor children assume that in the event of their death, loved ones will naturally step forward to care for their children. Unfortunately, these assumptions are often misplaced. Without a Kids Protection PlanⓇ, which I can help you create, the decision about who raises your children will be left to a judge – a complete stranger to you and 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. If you’ve named legal guardians for your kids in a will you made before, there’s a good chance it doesn’t account for the six common mistakes I often see. These mistakes happen even with well-meaning lawyers who may not have the specialized training I do as a Personal Family Lawyer® in planning for families with minor kids. If you have young kids and want me to review your plan to make sure it avoids these mistakes, give my office a call!

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.

 

Take Action Now to Protect the People You Love

I’ve seen too many people suffer negative, yet unnecessary, consequences after a loved one dies. And if you haven’t experienced it yourself, chances are you probably will. But with the proper education, beginning with correcting these dangerous myths about estate planning, I believe we can break the cycle of strife.

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, a plan 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. 

Book a call with us today to get started.

 

This article is a service of Levi Alexander, a Personal Family Lawyer® Firm. We don’t just draft documents; we ensure you make informed and empowered decisions about life and death, for yourself and the people you love. That’s why we offer a Life & Legacy PlanningⓇ Session, during which you will get more financially organized than you’ve ever been before and make all the best choices for the people you love. You can begin by calling our office today to schedule a Life & Legacy Planning Session.

The content is sourced from Personal Family Lawyer® for use by Personal Family Lawyer® firms, a source believed to be providing accurate information. 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, such advice services must be obtained on your own separate from this educational material.