Estate Planning Fatigue

According to a recent survey conducted by CNBC.com, more than one-third of high-net-worth families have not set up a basic estate plan to protect and provide for their loved ones when they die.

The survey found that 38 percent of millionaires with investable assets of $1 million or more have not established an estate plan with the help of a financial expert. Millionaires with $5 million or more were more likely to have an established estate plan with 68 percent having one.

The survey also found that Republicans were more likely to use a financial advisor to set up an estate plan than Democrats or independents. Sixty-eight percent of Republicans, 61 percent of Democrats and 58 percent of independents reported having an estate plan set up with a the help of financial expert.

A CNBC.com article quotes Mitch Drossman, national director of wealth-planning strategies of U.S. Trust as saying that the wealthy have been suffering from “estate-planning fatigue.”  Prior to 2013, there were frequent changes to the federal estate-tax law leading financial advisors and estate planning attorneys to be in constant contact with their clients letting them know how the new changes in the law affected them. This content changing left wealthy clients worn out saying “enough already!”

More recently, the higher federal estate-tax exemption amount has led some to make estate planning less of a priority. Married couples can combine their exemptions and give away $10.86 million tax-free this year. Since many people see estate planning as a way to reduce estate taxes, they see they won’t have to pay any estate taxes and think they no longer need an estate plan.

That said, if you’ve followed our blog or read about estate planning on our website, you know that estate planning is much more than a means to lower estate taxes owed. These millionaires may be worn out by constant changes in the tax law but the protection of minor children and their ability to direct decisions about their own healthcare is also at stake.

Read more about the estate planning fatigue affecting wealthy Americans here and call us at GQ Law to set up a free consultation to get your estate plan in order.

Already have an estate plan? Make sure its up to date. Any changes in marital status, births or deaths in the family, changes in assets, etc. warrant an update. Come see us! 858-549-8600