The number of Americans with a will dropped by six percent in 2024, the first decline in four years, according to a wills and estate planning survey conducted by Caring.com.
Only 32 percent of Americans have an estate plan this year, despite 64 percent saying that having a will is important.
Forty percent of those without a will say it’s because they don’t have enough assets to leave anyone. Lower-income Americans were twice as likely to cite this reason compared to those in higher income groups. Inflation and rising costs are also impacting decisions around estate planning.
Young adults are the only group seeing an increase in estate planning. The survey found that the number of Americans aged 18-34 with a will has increased by 50 percent since 2020. Many young people said the COVID-19 pandemic, expanding families, and growing assets motivated them to get a will.
For professional advisors, it’s important to note the best approach for targeting their messaging to the different client cohorts.
Young adults told surveyors that they’re significantly more likely than older Americans to be influenced to get a will by the media. Of those who responded to the survey, 34 percent said they saw something in the media or online that motivated them to create an estate plan in contrast to just three percent of Americans aged 55 or over – a 168 percent difference.
Compared to the older generation, younger Americans are more than four times as likely to set up a will before traveling. Only five percent of the 55-plus demographic said they were motivated to get a will by upcoming travel, compared to 22 percent of those 34 years old or younger.
Black Americans are also more likely to have a will than in previous years. Estate planning among Black Americans has increased by 19 percent since 2020, while rates among White and Hispanic Americans have dropped, the survey found.
Overall, the survey shows a need for more education — a function often taken on by professional advisors — on the importance of estate planning. Many Americans, especially those with fewer assets, may not understand the full benefits of having a will, according to Caring.com.
The Community Foundation often partners with professional advisors to help educate families and individuals about the benefits of charitable giving in estate plans. Foundation leaders encourage advisors and individuals to contact them with any such requests.
Caring.com, a senior living referral service, has conducted its online wills and estate planning survey annually since 2015. The results are based on 2,481 respondents over a two-day period in December 2023. It released the findings this summer.
