Skip to content

Posted almost 12 years ago

The Need for Estate Planning and Legacy Planning

I want to talk about the need for legacy planning or estate planning, even if you only have one house to leave behind or if you’ve got no house at all. Most of my clients have no will, living trust, life insurance, grave plot or even a scribbled piece of paper that tells those left behind what they want to happen after they die. Most houses end up in probate court when that could have been prevented with simple and inexpensive preparation.

According to a survey conducted in 2009 by Harris Interactive about estate planning, half of Americans don't have any of the most basic estate planning documents. That’s not a small number. This is an issue that will affect each and every one of us someday and half of the people in the country, who are of age to have a plan, have none. That means that half of all people out there have no plan whatsoever for their families if something happens to them.

The national telephone survey about estate planning and trusts included 1,022 adults. The most upsetting part of the survey was that it found many of the people who had done no planning were deterred by the legal cost and because many mistakenly believed that those without large assets didn't need to plan.

One of the biggest mistakes people make is thinking that something cannot happen to them. We often talk about how teenagers believe that they are untouchable and do stupid and carefree things, but there are too many grown people who are living just as recklessly with their family’s future. If you have any assets or any debts – and almost everyone in America today has one or both – you need to have some sort of plan.

According to the survey, only 35 percent of people have a will directing who gets their assets and only 29 percent have a living will that states their views on end of life medical procedures. The survey showed that older Americans were more likely to have made some preparations: 77 percent of adults over 55 had signed at least one of the needed documents, compared. But even those rates are too low.

Every single person over 55 should have some form of estate planning. In fact, every person over the age of 55 should have multiple estate and legacy planning measures prepared. Even with a will, your loved ones can end up in probate court.

Tomorrow, I'll detail 11 demands of a probate court that your loved one may have to deal with if you leave only a will or no estate plan at all.

Real Estate Mike is host of the syndicated radio show, “Let’s Talk Real Estate with Mike Andrews.” He is a published author, real estate expert, entrepreneur and investment advisor. Follow him on Twitter Twitter.com/RealEstateMikeA.


Comments (1)

  1. putting assets into an estate is one of the smartest decisions a family can make. The last thing you want to do is leave your assets to the courts to decide how to handle them.