Future planning is a crucial aspect of financial preparedness. Yet recent estate plan statistics indicate that many Americans remain unprepared. Although they understand its importance, they haven’t gotten around to it yet. Many are waiting for life events or medical concerns to push them over the edge.
Concerning Estate Plan Statistics
Regardless of their reasoning, the number of Americans that don’t have an estate plan is concerning—it’s most of us. Even more concerning, the number of Americans preparing for the future may actually be declining overall. Even after the Covid pandemic scare. (And despite the Great Wealth Transfer underway.)
Here are some quick estate plan statistics highlighting the current state of future planning in the United States:
Lack of Estate Plan: As of 2024, only about a third of Americans have an estate plan in place. In fact, more than two thirds of Americans do not have a will or any estate planning documents of any kind (e.g., wills and trusts).
Motivations for Estate Planning: Health concerns are a significant motivator, with 43% of individuals indicating that a medical diagnosis would prompt them to create a will, according to Caring.com.
Family Conflicts: Over a third of U.S. adults report experiencing or knowing someone who has faced familial conflict due to a lack of estate planning.
Probate Costs: The probate process can consume up to 10% of an individual’s estate. They may extend over several months or even years.
Wealth Transfer Expectations: In the coming decades, American retirees are projected to transfer more than $36 trillion to beneficiaries, including family, friends, and charitable organizations, according to PlannedGiving.com.
Executor Awareness: Less than half of individuals designated as will executors are aware of their responsibilities. Underscoring the need for clear communication in estate planning.
Document Accessibility: More than half of people are unaware of where their parents store estate planning documents. Highlighting a gap in family communication.
