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Critter Corner: Do People See More of a Need for Estate Planning Due to Inflation? 

Hayek 1Dear Hayek, 

Estate planning is very important, in my opinion. Inflation, however, has made many of us reconsider our priorities when it comes to our financial futures. Is there any correlation to inflation and people seeing more of a need or less of a need to getting their estate planning documents in order?  

Thanks for your help! 

Anne Flayshun 

 

Dear Anne, 

With inflation impacting almost everyone’s lives, more people are thinking about their financial futures. In other words, more Americans are starting to realize the importance of estate planning, partially driven by inflation. In fact, 1 out of 4 Americans said that inflation caused them to see a greater need for estate planning. Overall, 64% of Americans think having estate planning documents in order is important, yet only 34% of Americans actually have an estate plan. 

According to Caring.com’s 2023 Wills Survey: 

  • 19% of survey respondents said that they now see a greater need for estate planning because they worry about the impact of inflation on their heirs’ financial futures.  
  • More than 1 in 10 said that the reason for their changing views on estate planning is the increased value of their assets, such as real estate.  
  • 9% of Americans said they see less of a need for estate planning now because inflation reduced the value of their assets. 
  • Another 7% said they see less of a need for a will because they had to sell off many of their assets due to inflation.  
  • Although about 6 in 10 Americans have a retirement account, only about 1 in 3 have an estate plan. 

The 2023 Wills Survey also found that overall, 3% more Americans have an estate plan than in 2022 (from 33% in 2022 to 34% in 2023). Young adults have seen a significant rise in rates of estate planning over the last several years – 63% more young adults (18–34-year-olds) now have estate planning documents than in 2020, and young adults are now almost as likely as middle-aged adults to have a will. But many others are still putting it off – 42% of Americans haven’t created a will due to procrastination, and more than 1 out of 3 people without a will say they don’t have enough wealth to leave behind. 

To help shed light on the importance of estate planning and the feelings towards the process, Caring.com partnered with YouGov to survey 2,400+ American adults to find out who’s engaging in estate planning and identify the reasons why or why not. Since 2015, Caring.com has conducted these annual surveys to raise awareness about the importance of estate planning – especially for those who have not created an estate plan.  

Having a good estate plan is a crucial part of being a adult, but sadly is one of the most overlooked components, with the majority of adults not having any form of estate planning in place. 

There is no better time to get started on your estate planning than now. Please read Mr. Farr’s Ask the Expert article for more details.  

Hope this is helpful! 

Hayek 

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About Renee Eder

Renee Eder is the Director of Public Relations for the Farr Law Firm, and gives the voice to the Critters of Critter Corner. Renee’s poodle, Penny, is an official comfort dog who she and her children bring to visit with seniors who are in the early stages of dementia at a local senior home once a month.

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