Did you know the number of young adults with a Will increased by 63% since 2020?
In 2021, 18-34 year-olds are, for the first time, more likely to have a will than 35-54 year-olds according to a recent survey by Caring.com.
The COVID-19 Pandemic has changed the nation’s perspective on many things, and estate planning is one of them.
Caring.com’s 2021 Wills and Estate Planning Study found that middle- and older- aged adults are less likely to have a Will now than they were just one year ago, while younger adults are 63% more likely to have one this year than they were pre-pandemic. The younger generation was also the most likely to cite COVID-19 as the reason they started taking estate planning seriously.
Three years after the unexpected death of her husband, Chanel Reynolds posted a warning. She had started a website to help people avoid a predicament she had found herself in after her husband died. His will had an executor but didn’t have signatures, and she didn’t know many of his passwords.
Her message to others, who might not know whom to put down in their will as a guardian for a child or an overseer of their estate, was this: “If you are at a loss for whom to name, get out there and tighten up your friends and family relationships. Find some better friends. Be a better friend.”
In recent years, tax policy has tended to change depending on which political party held the reins in Washington, D.C. These swings mean you need to review your estate plan regularly. At a minimum, every few years. (It’s a good idea to do that regardless of tax laws, in case there are changes in your assets, beneficiaries, or other circumstances.)
Reducing expenses is everyone’s least favorite part of financial planning, but when overspending becomes a problem, it’s important to have a plan at hand that can help you quickly reduce expenses and eliminate further stress. An important consideration for all retirees who find themselves overspending is the following question: Are there any lifestyle changes that would help to save or free up money for other essential, unavoidable expenses?
With everything we have been through in the past year, I think it would be fair to recommend that all of us have reason to review our estate planning documents. And if you don’t have any, now is the time!
Especially if you are over the age of 60.
Typically, we tend to review our estate plan when we get older or if there has been a significant change in our circumstances. However, if you are over the age 60 and you haven't updated your estate plan in many decades, it’s time to update your documents. After everything has been updated, you should continue to review your plan every two and half years.
Here are a few age ranges and what they mean in terms of estate planning:
Compare Costs, Types of Service in Your Area
The rising cost of long-term care, coupled with an increasing array of options, can make it difficult for families to find the best, affordable care. AARP provides a handy dandy calculator that can assist with that process by estimating the cost of long-term care. Options include expenses for care in a nursing home, assisted living facility or adult day care, and use of a home health aide or homemaker service.