New research has discovered that fewer older Americans are writing wills, which could have a big impact on estate planning and leave a mess for loved ones who are left to sort out assets and final wishes.
Wills Among Older Americans in Decline
The percentage of households ages 70 and up with wills or trusts to allocate their assets after death has been in decline since the mid-2000s, according to a report by the Center for Retirement Research at Boston College published in August. Between 2008 and 2018, the share of these households where the head has a will dropped from 70 percent to 63 percent.
“Despite the importance of wills for preserving the value of a bequest, above and beyond their importance in transmitting it to intended heirs, only about two-thirds of households ages 70+ have a will, and that percentage has been declining over time,” the Center revealed.
“Wills are particularly valuable when the major bequeathable asset would likely decline in value from being split among multiple owners, as default laws tend to do,” the report continued. “Nevertheless, a large and growing share of individuals do not have a will.”
Additionally, one of the key findings in the report noted that Black and Hispanic individuals are less likely to receive an inheritance, have a will, and arrange to leave a bequest.
“We looked at who’s not writing wills,” Gal Wettstein, a senior research economist at Boston College, told USA Today. “And it’s disproportionately non-Hispanic Blacks and Hispanics.”
Why Wills and Estate Planning Are Important
Wills or trusts guide a person’s loved ones and their potential legal representatives in distributing property and other assets upon their passing and they can be incredibly important when it comes to making sure someone’s final wishes are carried out. If there are no clear instructions on how to allocate these assets, local courts may need to get involved.
If a person’s family and other loved ones can’t agree on what to do about property and other assets, things can get ugly. Legal battles that may have otherwise not needed to take place may ensue without a will in place that could help determine what to do with such assets while the person is still alive to have input and make decisions.
“In the end, you may fritter away a lot of the asset,” Wettstein said.
While it can be complicated and uncomfortable to discuss death and to work out a will, it is crucial to do so to avoid potential problems later on. Fortunately, there are estate planning attorneys who can assist you in drawing up a will or trust and who have the experience to help you navigate the challenges around the process.
How Dayes Law Firm Can Help
The attorneys at Dayes Law Firm, for instance, have years of experience with legacy planning. Our team would be honored to help you with wills, trusts, probate, and other estate planning tasks.
Please don’t hesitate to give us a call if sorting out a will is one of your goals. We offer a free, no-obligation consultation and can determine which of our services may be right for you. Contact us today at (800) 503-2000 to learn more!