Estate Planning in the US: The Surprising Numbers

Only about 33% of Americans have an estate plan—meaning a will, trust, or other legal documents that direct what happens to their assets after death. That leaves nearly 2 out of 3 adults without a will or trust, exposing their families to probate, higher estate taxes, and potential legal battles.

Why Estate Planning Matters

• Avoid Probate: Without a will or trust, your estate goes through probate court, which is public, slow, and expensive.

• Protect Beneficiaries: A clear estate plan ensures your assets go to your chosen beneficiaries, not just next of kin.

• Minimize Estate Tax: Smart estate tax and gift tax planning can save your heirs thousands.

• Guardianship for Minor Children: Only a will can name guardians for your kids.

• Healthcare Decisions: Living wills and healthcare proxies let you control medical decisions if you’re incapacitated.

• Asset Protection: Trusts can shield assets from creditors and lawsuits.

• Special Needs & Family Trusts: Protect vulnerable family members with special needs trusts or family trusts.

Key Estate Planning Tools

• Will: Directs asset distribution, names guardians, appoints an executor.

• Revocable Trust: Avoids probate, offers privacy, flexible.

• Irrevocable Trust: Asset protection, estate tax benefits.

• Power of Attorney: Lets someone manage your finances if you can’t.

• Advance Directive/Living Will: States your healthcare wishes.

• Beneficiary Designations: On retirement accounts, life insurance, etc.—these override your will.

Common Mistakes

• Not updating your estate plan after major life events (marriage, divorce, kids).

• Forgetting digital assets (online accounts, crypto).

• Not planning for incapacity (no power of attorney or healthcare proxy).

• Overlooking estate debts and expenses.

How to Start

1. List your assets and debts.

2. Decide on beneficiaries and guardians.

3. Consult an estate lawyer or use a reputable online service.

4. Review and update your plan every few years.

Bottom Line:

Most Americans don’t have an estate plan, but the risks of dying intestate (without a will) are huge: probate, family disputes, unnecessary taxes, and loss of control. Estate planning isn’t just for the wealthy—everyone needs a plan.