Who's Most Likely to Need an Estate Plan?

Who’s Most Likely to Need an Estate Plan?

A large majority of affluent investors have created estate plans, but new research from Spectrem's Millionaire Corner shows certain subsets of investors tend to put off estate planning and may lack an appreciation for this important aspect of personal financial planning.

Here’s a breakdown of groups most likely to procrastinate:

Investors ages 40 and under: More than 60 percent of young investors are going without an estate plan. The tendency may reflect a reluctance to deal with issues surrounding mortality, or indicate young investors are betting they’ll have time later in life to deal with estate planning issues.
Less affluent investors: The likelihood of having an estate plan decreases steadily with wealth. Less affluent investors may have the mistaken idea that estate planning is only for the rich.
Investors with little knowledge: Investors who describe themselves as having little or no investment knowledge are far less likely to have an estate plan than those who call themselves knowledgeable (60 percent vs. 90 percent).
Women: Men are more likely than women to have an estate plan. Women generally tend to underestimate their financial value and also tend to have less life insurance than men.