I was talking recently with my partner, Andrew Brower, who spends most of his time on estate planning. At some point the conversation turned to how many people either do not have a will at all or have one that has been sitting in a drawer for years. The percentage is . . . higher than you would expect.
Studies suggest somewhere between about 55% and 75% of Americans do not have a will. And even among those who do, many have not looked at it in a long time. Life may have changed, but their documents have not.
So let me ask the question a different way. You don’t have a current will? Because that’s really the issue.
This is not complicated. Estate planning is not just for the wealthy. And it is not something that should be on a to-do list for years.
Basics on the Documents
A will says who receives your property when you die. If you don’t have one, or if it no longer reflects your situation, state law fills in the gaps. That is rarely as simple, or as aligned with your wishes, as people assume.
A durable power of attorney allows someone you trust to handle financial and legal matters if you cannot. Without it, your family may be looking at a court proceeding just to manage basic issues.
An advance directive tells healthcare providers what medical decisions you want made if you are unable to communicate. Without it, those decisions can become difficult and, at times, disputed.
These are not complex documents. They are the basic framework.
When Should You Prepare Them?
If you own property, you need these documents. If you have children or dependents, you absolutely need them. If you expect to have either of those within the next couple of years, and you know you likely won’t circle back to this later, go ahead and do it now. Even if you are early in your career and do not think you have much, having these in place can still make things easier for the people around you.
What I Hear Instead
“I’ve been meaning to do that.” “I actually have something, but it’s old.” “I just haven’t gotten around to updating it.”
Those are common responses, but they all lead to the same place. Documents that do not exist, or documents that no longer match reality. In the meantime, life continues. Families change. Assets change. Relationships change.
And sometimes this is not abstract. It was brought home just this month with the sudden and unexpected death of one of our employees. It was a complete shock, and she was about half my age. You just do not know when something like this is going to happen.
It Happens to All of Us
I recently updated my own estate documents. My wife and I still had provisions naming guardians for our three sons. WHO ARE NOW IN THEIR MID TWENTIES! That’s how easy it is to let this go longer than intended.
If you have not looked at your documents in a while, there is a good chance they no longer reflect your current situation.
This is one of those areas where it is simply worth doing. Estate planning is not about overthinking worst-case scenarios. It is about putting a basic structure in place so that things are clearer and easier for the people who will have to deal with them.
If you are not sure where to start, talk with an attorney who handles this regularly. In our practice, Andrew assists our homeowner and condominium associations clients with estate-related matters. The rest of his practice is focused on preparing estate documents for North Carolina individuals and families. He also speaks to groups and organizations on these topics, which can be a helpful way to get a basic understanding of what is involved. To contact Andrew, visit his bio page or email [email protected].
But for now, if you are reading this and either do not have a will or have not looked at yours in years, it may be time to move this up the list.