Anxiety has led to an increase in estate planning.
As a result, a lot has changed since the start of 2020.
A once-strong economy is now racked with inflation.
The COVID-19 lockdowns also rocked the sense of stability and security.
According to a recent SI Live article titled “More young adults are creating wills because of COVID-19, inflation, survey says,” these changes have led to anxiety about the future.
The annual Wills and Estate Planning Survey from Caring.com showed that estate planning concerns are rising.
About 20 percent of respondents attributed this worry to the 6.5 percent increase in inflation in 2022.
They are concerned about how inflation will impact their heirs.
The rise in inflation has also underscored the value of certain assets like real estate.
About 9 percent of those surveyed indicated their assets had lost value with inflation.
Assets were sold by 7 percent of respondents just to make ends meet with the daily cost of living.
Despite 64 percent of Americans indicating they believed an estate plan was important, only about 34 percent have a plan.
According to the Caring.com survey, anxiety has moved younger Americans to get an estate plan.
This demographic is 63 percent more likely to have an estate plan in 2023 than 2020.
Over one-third of these younger Americans stated inflation was the catalyst for their action.
COVID-19 also seems to have influenced this shift.
Between 2020 and 2021, the number of young adults desiring to create an estate plan rose by 69 percent.
Although older Americans are more likely to have a last will than younger individuals, 32 percent of those age 55 and older said inflation changed how they viewed estate planning.
The anxiety over the economy and its impact led to a 3 percent total increase in those with a last will within the past year and a 6 percent increase since 2020.
What is the most common reason cited for not having an estate plan?
The answer is procrastination at 42 percent.
About one-third of Americans have no plan because they do not believe their wealth is significant enough.
Regardless of whether you are feeling anxiety about the future, it is wise to reach out to an estate planning attorney to get your affairs for your loved ones.
Reference: SI Live (March 3, 2023) “More young adults are creating wills because of COVID-19, inflation, survey says”