More Americans Are Engaging in Pandemic Estate Planning

12/16/2020 07:07 PM (update 08/09/2023 07:15 AM)

Amidst the ongoing coronavirus pandemic, it's not surprising that many people are fixated on their health and well-being. But many are also preparing for the worst-case scenario. Although up to 40,000 people died in motor vehicle accidents in 2018, approximately 269,000 Americans have already died from COVID-19. With cases on the rise nationwide, many Americans feel it makes sense to think ahead and make sure their loved ones are provided for. However, only 37% of American seniors currently have advanced directives in place for end-of-life planning in case of a sudden illness or incapacitation. This lack of planning actually echoes a need for more widespread financial preparation, even among older adults. A 2016 Pew Research poll found that nearly 20% of senior citizens were still working full-time jobs. Other data from 2019 reveals that 64% of Americans are ill-prepared for retirement; around 45% said they had no money put aside for retirement, while 19% said they had less than $10,000 saved. Although older adults tend to have the most money saved out of any age bracket, that doesn't mean that seniors are completely prepared for the worst -- nor is it true that only those in their 50s and 60s should be thinking ahead and performing estate planning duties. While older people may be more vulnerable to the effects of this virus, we've also seen perfectly healthy 30- and 40-year-olds succumb to COVID-19 in devastating ways. To avoid creating more stress and uncertainty for your loved ones, it makes sense to plan ahead. It's something more Americans are now doing, according to financial planners and legal experts. The pandemic is even changing cultural norms, in some cases, that might otherwise prevent vulnerable communities from protecting loved ones from undue hardship. A survey conducted by Legal Zoom found that 32% of young people aged 18 to 34 say they made a will because of COVID-19, with 21% of that group saying they drew up a will because they contracted COVID or knew someone who did. In fact, 26% of Americans who have a will made one because they were scared of illness or death related to the novel coronavirus. However, not everyone is making estate planning a priority. That same Legal Zoom survey found that 62% of Americans still don't have a will. Of those who do have one, only 12% created one during the last year. One possible reason for a lack of estate planning is that many people mistakenly believe they don't have sufficient assets to warrant a will. But a will does so much more than divvy out property and valuable goods. That said, some assets fall outside of a will and other documentation is needed to ensure your wishes are followed after your death. Financial planners and legal experts hope that more people will realize that having a will can protect families in a number of ways -- and that it's never too soon to make one. Don't let the pandemic hit close to home before you decide to make your wishes known. AMAZON AD-SKINCARE: