Just under 32% of Americans currently have an estate plan, according to a recent study by Caring.com. The survey also found that Americans with incomes under $80,000 had significantly lower rates of estate plans set up than did those over that income threshold. Pullman and Comley Estate Planning Attorney Alan Parker says estate planning is critical for people of all income levels to ensure their assets are distributed according to their wishes.
The risks of not having a will
“The failure to execute a will would result in someone dying absent a will or your will is not valid. And if you are married, for example, you shouldn't assume that your spouse will inherit 100% of your estate. In that scenario, a state statute governs who receives your assets,” Parker explained. This default process can lead to outcomes that may not align with a person’s intentions, especially for married individuals or those with unique family dynamics.
To make a will valid in Connecticut, Parker emphasized that “it has to be signed before two witnesses and a notary public or an estate attorney.” Ensuring these legal formalities are met can prevent future disputes or complications.
More than just a will
While a will is the cornerstone of any estate plan, Parker noted that a comprehensive plan typically includes several key documents. These include:
Durable powers of attorney: Authorizing an agent to manage financial affairs if the individual is incapacitated.
Advance health care directives: Appointing a health care representative to make medical decisions on the individual’s behalf.
“These documents together ensure that your financial and medical wishes are respected,” Parker said.
Safeguarding your estate documents
Where to store estate planning documents is another crucial consideration. Parker recommended keeping the original will in a locked safe deposit box or entrusting it to a law firm.
“A number of our clients ask us to hold those original documents in a will vault that we maintain here at Pullman and Comley,” he said.
The pitfalls of online estate planning
According to Gentreo.com, nearly 45% of Americans aged 30-50 have used or considered using online estate planning platforms.
Among the benefits of online estate planning services are speed and lower cost. However, Parker warned about potential risks.
“When you're online with most of those companies, you're not getting professional legal advice,” he cautioned.
Online services may not account for variations in state laws or ensure that a will is executed properly.
“It’s really important to have an attorney supervising the will execution to make sure it will hold up and be valid,” Parker said.
The cost of peace of mind
For individuals with moderate incomes, Parker suggested that a basic estate plan might cost around $1,500. The final price can vary based on factors such as family dynamics, business interests or specific needs for children.
For anyone thinking even $1,500 is too much, Parker shared a telling analogy: “If I was on the Titanic and needed a lifeboat for myself and my family, and my options were buying a professionally assembled boat or making one from a kit, I would purchase a professionally assembled boat — even if it were substantially more expensive.”
Ultimately, Parker believes that investing in a well-crafted estate plan is an essential step to protect the assets individuals have worked so hard to accumulate.
“Estate planning is not just for the wealthy,” Parker concluded. “It’s about making sure that your wishes are respected and your loved ones are cared for — no matter your income level.”
