COVID & Estate Planning

According to a recent survey conducted by Caring.com, 67% of Americans have no plans in place for their estates or advance directives for end of life or other incapacitation. It seems that the Covid-19 pandemic brought greater awareness to the importance of such planning and official documentation, but many still have not acted. Interestingly, but not surprisingly, “Those who’ve had a serious case of COVID-19 are 66% more likely to have a will than those who haven’t.”

Why are people hesitating?

Some people simply haven’t found the time… which is a poor excuse, and one they may very likely regret in the event of a catastrophe. Still, others don’t believe their assets are worth enough to warrant an estate plan for their surviving loved ones. This concern has been compounded with the current state of the economy, particularly in light of ever-growing inflation; as many as 90% of adults share this fear, believing their portfolios are too meager to be of any concern to their surviving loved ones.

Planning for the future, especially when we can’t know how close or how far away it may be, is always a good idea, no matter the value of your assets. The more details, the less stress, and anxiety for your family and friends, eliminating the guesswork. Even if you will leave this world in the red, you should still consider putting advance directives in writing. We provided a nice primer for advance directives, living wills, and medical proxies in our blog. I encourage you to review it, utilizing it as you consider your own concerns.

What could go wrong without preplanning?

It’s difficult to know where to even begin answering this question. Mass Mutual insurance posted a blog about a year ago, with just a small list of potential pitfalls without estate planning, or without updating your will and financial and medical proxies. There may be tax implications if documents and policies are not set up accordingly. Further, insurance beneficiary designations supersede wills and trusts, so keeping a track of all of your policies, assets, and documents, is paramount.

At the end of the day, it’s about your desires … how do you want to live your final days and hours? Who should receive your grandmother’s china, and how will assets be distributed amongst survivors? Do you want to make these decisions, or would you rather leave it up to the laws of your state and a court of law?

We have a compassionate, experienced team standing by to guide you through this process. Reach out to us today to schedule a consultation; you may be surprised at the options you have. And your family will appreciate your forethought one day.