Legacy Planning 101: Why Everyone Needs a Will

For many, creating a will might feel like a task for later in life, but legacy planning is essential at every stage of adulthood. In fact, having a will is one of the simplest yet most impactful steps to protect your loved ones and ensure that your wishes are honored. Despite its importance, a surprising number of people overlook this crucial step in legacy planning. Below, we break down why everyone needs a will, the risks of going without one, and the peace of mind that comes with proactive planning.

The Current State of Legacy Planning: Key Statistics

1. Lack of Preparedness Among Adults

   • Data Trend: A 2023 study by Caring.com found that 67% of American adults don’t have a will, despite 76% recognizing its importance. Among young adults aged 18-34, only 24% have a will, though this demographic has seen a recent increase in interest in legacy planning (Caring.com, 2023).
   • Explanation: The lack of legacy planning across all age groups highlights an urgent need for more awareness. Creating a will is a step that should be taken early in adulthood and revisited throughout life as financial situations, family dynamics, and priorities evolve.

2. Increased Interest Due to Recent Events

   • Data Trend: Since the COVID-19 pandemic, the number of people drafting wills has increased. In a 2022 survey by Trust & Will, 35% of respondents cited the pandemic as the primary reason for starting or updating their legacy plans (Trust & Will, 2022).
   • Explanation: Events like the pandemic have underscored the unpredictability of life and prompted people to consider how they can protect their families through proper planning.

Why Everyone Needs a Will: The Benefits

1. Avoiding Intestate Succession

   • If you pass away without a will, the state decides how your assets are distributed according to intestate succession laws. This often means that your estate may not go to the people you would have chosen. With a will, you decide who receives your assets, giving you control and ensuring your family is supported according to your wishes.

2. Reducing Family Conflicts

   • Wills provide clarity, outlining who receives what and avoiding potential conflicts among family members. Estate disputes are common when clear directions aren’t provided, and they can lead to lengthy and expensive legal battles. By having a will, you create peace of mind for yourself and harmony among those left behind.

3. Providing for Minor Children

   • Data Trend: According to the American Academy of Estate Planning Attorneys, 42% of adults with minor children do not have a will or plan that names a guardian (American Academy of Estate Planning Attorneys, 2023).
   • If you have young children, a will allows you to designate a guardian, ensuring they are cared for by someone you trust. Without a will, a court may appoint a guardian who might not align with your family’s values and priorities.

4. Saving on Taxes and Administrative Costs

   • While taxes vary by state, proper planning can significantly reduce estate taxes and minimize administrative expenses. A clear, well-crafted will streamlines the probate process, reducing the time and legal fees required to settle an estate. This means your loved ones receive a greater portion of the inheritance.

Steps to Getting Started with a Will

1. Inventory Your Assets: Make a list of everything you own, from real estate and financial accounts to valuable personal items. Knowing what you have will help you decide how to distribute your assets effectively.
2. Choose Your Beneficiaries and Executor: Beneficiaries are the people who will inherit your assets, and the executor is the person responsible for ensuring your wishes are carried out. Selecting trusted individuals for these roles is crucial for smooth legacy planning.
3. Consult with a Legacy Planner or Attorney: While there are many online tools to help create a will, consulting a professional ensures that your will complies with local laws and accounts for specific circumstances. An estate planner or attorney can provide tailored advice to fit your unique needs.
4. Regularly Update Your Will: Life changes, and so should your will. Major life events—such as marriage, the birth of a child, or acquiring significant assets—warrant a review and potential update of your will to reflect your current intentions.

Common Myths About Wills and Legacy Planning

1. “I Don’t Have Enough Assets for a Will”: Whether you have a large estate or a modest one, a will is essential. Legacy planning is less about the value of assets and more about ensuring your loved ones are cared for and your wishes are clear.
2. “I’m Too Young to Think About a Will”: The truth is, it’s never too early to start legacy planning. The best time to create a will is when you start to accumulate assets or have family members who rely on you. Starting early also provides peace of mind and can easily be adjusted as your circumstances change.
3. “Only Older People or the Wealthy Need Wills”: Legacy planning is for everyone, not just the elderly or wealthy. In fact, a will is often even more important for younger adults, particularly those with dependents, debts, or specific family members they want to protect.

Conclusion: The Peace of Mind That Comes with Legacy Planning

Creating a will is one of the most considerate and impactful steps you can take for your loved ones. By defining your wishes, you reduce stress and uncertainty for your family and ensure that your legacy is preserved. Legacy planning may seem overwhelming, but it is an essential part of adult life, offering lasting benefits for both you and your loved ones.

Sources:

• Caring.com. (2023). “Wills Survey.”
• Trust & Will. (2022). “2022 Estate Planning and COVID-19 Report.”
• American Academy of Estate Planning Attorneys. (2023).