Did you know that most Americans do not have an estate plan? Roughly a third do, but the other two-thirds do not, so the majority of Americans have not yet written a will or taken any other important steps to protect their future in the event of their incapacitation, or their loved ones in the event of their death.
When asked why they have not written an estate plan, many of them have cited that it is something they plan to do in the future. It is not that they do not think having a will eventually is important. They just think they do not need one yet. Unfortunately, there are some significant risks associated with this position.
The role of incapacitation
For one thing, certain events could happen that could lead a person to become incapacitated. They could suffer from a stroke or they could develop a disease like dementia or Alzheimer’s.
If so, drafting an estate plan could be impossible if someone cannot communicate in a legally enforceable way. If an individual is suffering from cognitive decline, while they still may be able to write an estate plan, it can lead to serious estate disputes and conflicts. Beneficiaries may challenge their plan on the grounds that the person no longer had testamentary capacity to write a will in the first place.
An unexpected passing
Naturally, the other risk is simply that someone passes away before they expect to. Many people decide to wait until they retire to write a will, for example, assuming that that is when they will have the majority of their lifetime financial assets that they’ll want to include in the estate plan. But if they pass away even just a few years earlier than they planned, they could die without ever actually leaving instructions to their family members.
In other words, life is unpredictable, and planning in advance is better than waiting. If you are interested in drafting an estate plan this year, carefully consider the steps you will need to take and seek legal guidance given all that is at stake.
