Estate planning, which means preparing for your future, can provide peace of mind and security. Despite this, only about 33% of Americans had any estate planning documents in 2021, according to Caring.com.
There are many reasons why people might delay preparing for the end of life, disability or incapacity.. If you are among those without a will or other estate planning documents, consider why it may be time to prioritize this important process.
Even if you have limited property to leave behind, remember that estate planning does more than just determine what happens to your assets after you pass. You can use a will to appoint a guardian for your minor child or set up a trust to provide for a loved one with special needs. You can also use an estate plan to create health care directives and appoint a power of attorney to act on your behalf if you become incapacitated.
You may feel that you are too young to start thinking about the end of your life. However, the unexpected can happen, leaving your loved ones to try to predict your intentions. Your estate plan can provide guidance about your wishes if you pass away or can no longer make decisions for yourself.
CNBC reports that the primary reason that people delay estate planning is procrastination. To avoid this common pitfall, start by setting a deadline for yourself and set aside time in your schedule specifically to begin the process.
Even if you have already created an estate plan, you should make sure to review your key documents periodically. Major changes in your life and financial circumstances can have significant impacts on these plans.