Why Estate Planning Should Be Part of Every Financial Plan

Estate planning is often treated as an uncomfortable topic, something to “get to later,” yet the consequences of avoiding it can be significant. Current research shows that many Americans are unprepared.1

67% of Americans do not have a will or any estate planning documents.2 That means most families are one unexpected event away from confusion, conflict, or financial loss. The costs of this avoidance can be substantial.

Consider the probate process. For many estates, probate can last 6 to 18 months, depending on complexity.6 During that time, families can often encounter delays, paperwork, and legal hurdles. Probate can also consume 3%–10% of an estate’s value, reducing what passes to heirs.3,4

The emotional impact can be serious. Research indicates that 58% of families experience disputes when no estate plan is in place, which can result in long-term tension or conflict.5

These realities highlight that estate planning should not be considered optional. A will, healthcare directive, power of attorney, and thoughtful beneficiary designations are components of a financial plan, applicable regardless of age, wealth, or family structure.

Creating an estate plan documents intentions, outlines the transfer of assets, and provides guidance for families during difficult situations. With professional assistance, estate planning can be incorporated into a broader financial strategy as a practical measure.

A financial plan can reflect your values, goals, and legacy. Estate planning is one aspect of that planning and can be addressed alongside other financial considerations. Moving it from the “later” list to the “now” list may reduce future complications.

References

1. Caring.com – 2024 Wills & Estate-Planning Study (32% have a will) https://www.caring.com/resources/2024-wills-survey

2. CNBC article: “67% of Americans have no estate plan” https://www.cnbc.com/2022/04/11/67percent-of-americans-have-no-estate-plan-heres-how-to-get-started-on-one.html

3. SmartAsset: Probate costs are typically 3%–10% of estate value https://smartasset.com/estate-planning/cost-of-probate

4. Greiner Law Corp: Probate costs 3%–10% of total estate https://greinerlawcorp.com/examples-of-probate-costs

5. LegalShield / InvestmentNews: 58% of people report family disputes when there’s no estate plan https://www.investmentnews.com/retirement-planning/lack-of-estate-planning-leads-to-family-feuds-study-shows/240734

6. Elayne & Associates: Most estates take 6–18 months to close https://www.elayne.com/resources/how-long-do-you-have-to-close-an-estate-understanding-probate-timelines