Estate planning is used as a way to ensure that your assets are distributed according to your wishes when you pass away. It is also a useful tool for planning ahead to manage your assets and healthcare wishes during your lifetime. An estate planning attorney can help you learn more about the different ways you can plan for your future and help you navigate through that process.
California Estate Planning Attorneys
The California estate planning attorneys at Galanti & Copenhaver, Inc. have many years of experience handling a wide variety of estate planning issues. Our attorneys make sure to stay up to date on the latest laws and estate planning trends. Contact our office today to schedule a consultation to meet with one of our lawyers to learn more about how estate planning can benefit you and your future.
Statistics for Estate Planning
Caring.com and YouGov America have partnered together to compile up to date statistics associated with estate planning each year. Though estate planning seems to be needed more than ever these days, their annual wills survey for 2020 shows a different picture.
Fewer People are Creating Estate Plans in 2020
In the latest wills survey for this year, it was found that fewer people are creating estate plans than in the past few years. Interestingly, there was actually a 25% decrease in the number of study participants that have made a will or a similar estate planning document since 2017. The primary reasons study participants stated as to why they have not done any estate planning is the cost of estate planning and their lack of education on the topic of estate planning.
Estate Planning Beliefs Statistics
Sixty percent of the 2020 study participants still believe that estate planning is somewhat or very important. However, as compared to the 2019 study results, the number of participants who have not yet given any thought about whether or not a living trust or a will is important for them increased by 12 percentage points for 2020.
Estate Planning and Wills Statistics Over the Last Few Years
In a 2017 study about wills, 42% of the study participants stated that they have a will. By 2019, this number had decreased a small amount to 40% of participants claiming that they do have a will. However, in 2020, the percentage of study participants stating that they have a will dropped significantly to just 32%.
Estate Planning Age-Related Statistics
When taking a close look at estate planning statistics, it is also important to consider different age groups while analyzing various statistics. In the 2020 study, it was found that middle-aged and older adults had a significant drop in the number of study participants who have some type of estate planning document, as compared to the millennial age group. In fact, the number of adults in the age group 35-54, who stated that they have a will decreased by more than 25% from 2019 to 2020. For adults aged 55 and up, there was about a 20% decrease. Interestingly, the young adults age group of 18-34 only had a drop of 1.6 percentage points from 2019 to 2020.
Estate Planning Statistics and Income Range
Another thing worth taking into consideration when analyzing estate planning statistics is how income may influence these figures. The latest 2020 study revealed that less than half of participants that make $80,000 or more per year have any estate planning documents at all.
The data shows that as a person’s income increases, the likelihood of that individual having a will, advanced healthcare directive, or a living trust also increases. This makes sense intuitively since wealthier people have more assets to worry about. However, the number of people who have any form of estate planning document has also decreased in 2020 for people in this higher income bracket. Presumably, these individuals would have the means to create a will or any other type of estate plans, so the issue here may be a lack of understanding about the importance of having estate plans in place.
What Do These Statistics Mean for the Future of Estate Planning in California?
The most recent estate planning statistics for 2020 demonstrate that estate planning seems to be on the decline—just as we enter an uncertain time period of the emergence of a worldwide pandemic. Estate planning is now more important than ever, so it is crucial that people continue to educate themselves on how proper estate planning can benefit themselves, as well as their loved ones, in the future. Contact Galanti & Copenhaver, Inc., today at 707-867-0787 or fill out our online contact form to see how we can help you.