Did the Coronavirus Influence Estate Planning?

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The coronavirus underscored the importance of estate planning at any age.

Estate planning is often associated with those who are older.

This is likely because “seasoned citizens” have experienced more life and are coming closer to the end of their own lifespans.

In short, they recognize their own mortality.

According to a recent Insurance News Net article titled “Study: Young Adults More Likely To Do Estate Planning Due To COVID-19,”  as a result of the coronavirus more young people are recognizing the fickleness of health generally and the limits to their own control over it specifically.

The coronavirus triggered a rise in estate planning.
More young adults have created estate plans as a result of the coronavirus.

A study released this year and conducted by caring.com surveyed 2,500 Americans about estate planning.

What did the study find?

The number of young adults with a last will and testament increased by 63 percent since last year.

Unlike the past, adults under age 35 are now more likely to have a last will and testament than those ages 35 to 54.

About half of those young adults responding to the survey indicated that the coronavirus increased the appeal of estate planning.

Even so, 67 percent of Americans do not have a last will and testament in place.

Why?

Many people who responded simply indicated their reason is procrastination.

However, since 2017 the number of Americans noting that they do not understand estate planning increased by 90 percent.

Similar to the young adult demographic, the number of Hispanic and Black Americans with an estate plan has increased.

Since the 2020 report, the number of Hispanics has increased by 12 percent with a last will and testament has increased by 6.2 percent and the number of Blacks has increased by 12 percent.

Despite the coronavirus bringing a greater public awareness to estate planning, there is still an income distinction between those with an estate plan and those without one.

Those who make less than $40,000 in a year are less likely to have a last will and testament.

At the same time, those who made between $40,000 and $80,000 saw a 39 percent increase in estate planning in a single year.

This survey by caring.com has been conducted annually since 2015 and this most recent survey underscores the effects of the coronavirus on estate planning.

Reference: Insurance News Net (Feb. 23, 2021) “Study: Young Adults More Likely To Do Estate Planning Due To COVID-19”

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