Why Do People Avoid Estate Planning?

Four Estate Planning Myths

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 52% of couples lack estate plans. These statistics reveal a concerning gap between recognizing the importance of estate planning and taking action.

Let’s explore the question “Why do people avoid Estate Planning?” and dive into the Four Estate Planning Myths.

 Myth 1: “I don’t have enough assets to need an estate plan.”

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 to help not leave a mess. It helps ensure 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 an Estate Plan (the type of comprehensive planning we offer), your loved ones could face lengthy court proceedings like probate, 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 tasked with carrying out your medical decisions, when you can’t speak for yourself,
• 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.

A personalized and thorough estate plan can minimize conflict among your loved ones. By clearly outlining your intentions, you significantly reduce the chances of misunderstandings or disputes, while also increasing the chances that your resources will be used to create a better future for the people you love.

Finally, 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 and keep 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.

 Myth 2: “My spouse and I trust each other completely.”

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 overlook several essential matters.

For instance, trust between spouses doesn’t prevent legal complications or avoid court. Without clear instructions, a surviving spouse may face lengthy probate, higher taxes, and difficulty accessing accounts, straining relationships and depleting assets meant for heirs. If both spouses pass simultaneously, complications can arise, especially with children from prior marriages or minor children.

Another issue occurs if the surviving spouse remarries. Without an estate plan, assets could unintentionally go to the new spouse, potentially disinheriting children and leaving them without the support their parent(s) intended.

Myth 3: “Estate planning is too expensive.”

Another common misconception is that estate planning is a luxury reserved for the wealthy because of its perceived high cost. But the reality is that law firms have different costs that vary widely depending on the complexity of your family and assets.  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 or should you become incapacitated. 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 always far exceed the upfront investment of creating an estate plan.

Beyond finances, the peace of mind knowing your loved ones are protected is priceless. Family members usually thank you for taking care of this. Our planning ensures your wishes are honored, your loved ones are cared for, and conflicts are minimized—saving them from emotional and financial burdens.

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 them. Unfortunately, these assumptions are often wrong. Without a clear and concise directive, the decision about who raises your children will be left to a judge. And when a stranger makes the decision about who will raise your kids, it might not be the person you would have wanted, and the court process may create family animosity over who is appointed.

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 created will or power of attorney, it’s important to revisit this and make sure financial burdens are also considered for the proposed guardian and that they still feel confident in being able to care for your children.

We Can Help You

Don’t avoid estate planning—address the myths and misconceptions surrounding it. As an experienced estate planning firm, we guide you in creating a legacy, implementing smart tax strategies, organizing your finances, and ensuring your loved ones avoid court and conflict. Most importantly, we help you make informed decisions that reflect your values and wishes.

Please feel free to call our office at (480) 525-6244 or email us at info@bizestatelaw.com if you’d like to discuss setting up your estate plan.