Rosalind Evans
The Importance of Writing a Will
Contemplating one’s mortality might not be an everyday concern, but writing will certainly warrant more attention than it typically receives. According to a study by the Center for Retirement Research at Boston College, only about one-third of people have a will in place—the reasons for this range from simple procrastination to misconceptions about the necessity of estate planning. Gal Wettstein, a senior research economist at the center, emphasizes that crafting a will is “not just a question about finances,” highlighting its broader significance in personal financial planning.
Procrastination vs. Necessity
Why Many Delay Writing a Will
Despite the clear benefits of having a will, 44% of those who do not have one admit that procrastination is the main hindrance, based on a survey conducted among 3,047 individuals aged 25 and older. This delay often stems from the daunting nature of the task, perceived as adding unnecessary complexity during other significant life events, like buying a home. However, Wettstein notes the strategic advantage of aligning the creation of a will with major financial undertakings such as mortgage applications, where much of the necessary paperwork and asset evaluation is already being done.
Misconceptions and Realities
Estate Planning: Not Just for the Wealthy
A significant portion of the population, nearly 40%, according to Caring.com’s 2024 Wills and Estate Planning Study, believe they do not possess enough assets to justify an estate plan. This 21% increase from the previous year represents a common misconception. Patrick Hicks, the general counsel for Trust & Will, stresses that estate planning is crucial for everyone, not just those with substantial wealth. Without proper estate documents, families can face additional stress and legal hurdles, especially when dealing with the custody of minors or recognizing the rights of domestic partners.
A Practical Start to Estate Planning
Simple Steps to Protect Your Assets
For those intimidated by the formal estate planning process, a certified financial planner, Clifford Cornell, suggests beginning with more straightforward actions such as designating beneficiaries for retirement accounts, life insurance policies, and certain bank accounts. This allows these assets to bypass the will, providing a direct transfer to chosen individuals, which can be easily updated following significant life events. Understanding joint ownership and proper titling can significantly ease the transfer process after one’s passing for more considerable assets like homes or vehicles.
The Imperative of Preparedness
Writing a will goes beyond mere financial directives; it is a fundamental aspect of responsible adulthood, ensuring one’s wishes are respected and loved ones are cared for in their absence. As Clifford Cornell advises, “It’s great form to have these documents in place,” not only to alleviate potential legal complexities but also to provide peace of mind during emotionally challenging times. The data and expert opinions converge on one point: the importance of timely estate planning cannot be overstated.
