According to the Gallup poll, 46% of all U.S. adults have a will, but fewer than half of those in the middle and lower income bracket have an estate plan. The study also reveals that those with a higher income are more likely to have a will. For the highest income group, the number of people with estate planning documents increased by 7% since 2020. But, how many people under $40k have a will?
There are various reasons for making a will. Apparently, Covid-19, a documentary about the plight of the elderly in America, prompted more Americans to create a will. The study found that slightly less than half of adult Americans had a will, and only 39% of women had one. The number of people with updated wills increased as adults aged, and the younger generation was more likely to have one.
Those with more education are more likely to have estate planning documents, with more than one-half of postgraduate degree holders having a plan. Those with less education are also less likely to have a plan. The survey also found that 63% of those with a four-year college degree do not have a will, while only 32% of those with an associate degree or less than $40k earn a will.
The survey also found that the number of younger adults with an estate plan was nearly one-third higher than the rate of older Americans. The number of people with a will is significantly higher among those with COVID-19, compared to those without. The number of young adults with an estate plan increased by 8 percentage points and their percentage went up by 50% in two years. While younger adults are more likely to have a will than older people, older adults are less likely to do so.
Despite the growing number of people with a Will, many people fail to make one. The primary reasons for not making a will include lack of assets, lack of knowledge, and time. Many people think that it is too expensive or time-consuming to write a will. Despite the growing popularity of Wills, not everyone has a Will. If you do not have a will, it’s important to write one!
A will is an excellent way to avoid taxes and to control who gets what. It can also reduce or eliminate estate taxes. For example, if you’re married, you can take advantage of a marital deduction and save money on estate taxes when you die. Additionally, you can specify who will be charged with taxes on their estate. Some states require beneficiaries to pay these taxes, and if they don’t, they may have to pay additional taxes.
People who have living wills and health care powers of attorney can specify how they want their medical care administered. These documents are often required in cases where a person is unable to make decisions on their own. A living will also names a person to make decisions for them in the event of illness or incapacitation. In addition to a will, many people also create living wills and health care power of attorney documents.
Even if you have a will, you should review it periodically. Some important events can trigger a review: marriage, divorce, childbirth, death of a spouse, purchase of a new home, new business, or the birth of grandchildren. Other reasons to review your will are changes in tax laws, the emergence of a new business or family, and the decision to make a large charitable gift.
The downsides of dying “intestate” are well-known. For example, when a man dies before a wife, her property and assets will be distributed to the surviving spouse or descendants. The laws that govern intestacy are not designed for nontraditional families. To avoid intestacy, you must create a will following the Wills Act requirements, which date back to the 1677 English statute. Generally, the person making a will, or testator, must sign the document before two witnesses. The witnesses must also sign the document.