When you hear the term estate planning, your mind might immediately jump to writing a will. And while a will is a key piece of the puzzle, it’s far from the whole picture.
Estate planning is a comprehensive process and a big component of financial wellness that helps manage and protect your assets, outline your wishes, and support your loved ones in the event of incapacitation or death. It’s a foundational part of financial wellness and one that’s too often overlooked.
A will can dictate who gets your belongings, but a full estate plan goes much further, covering everything from tax strategy to guardianship, healthcare decisions, and debt resolution. Understanding the difference and taking action is one of the most responsible steps you can take for your family and your future.
What Is Estate Planning?
Estate planning refers to the preparation of legal documents and strategies that manage an individual’s financial and personal affairs in the event of their incapacitation or death. This process includes:
- Designating how assets will be distributed to heirs
- Settling outstanding debts and taxes
- Appointing guardians for minor children or pets
- Assigning power of attorney for financial or medical decisions
- Creating trusts for minor children, charitable donations, or special-needs dependents
- Documenting wishes for end-of-life care
In short, creating a will and an estate plan is about more than just who gets what. It’s about ensuring your values, your loved ones, and your legacy are protected.
Wills vs. Estate Plans: What’s the Difference?
Creating a will provides you with a legal document that states how you want your property distributed after your death. It can name guardians for your children and outline funeral preferences, but it doesn’t address everything.
An estate plan includes a will, but it also may contain:
- Living trusts to avoid probate and manage assets during life
- Powers of attorney for medical and financial decisions
- Advance healthcare directives to communicate your wishes in case you can’t speak for yourself
- Beneficiary designations for retirement accounts and life insurance policies
- Tax planning strategies to minimize estate taxes and maximize inheritance
Having just a will without an estate plan is like owning a car without insurance—it might get you where you need to go, but if something goes wrong, there’s a real risk of chaos and confusion.
Fewer Americans Are Prepared, and That’s a Problem
A 2024 USA Today article reported a concerning trend: fewer adults are preparing even basic wills. According to the 2024 Wills and Estate Planning Study by Caring.com, only 32% of American adults had a will in 2024. That’s down from 34% in 2023.
That’s not just a drop in numbers; it’s a decline in preparedness. The study also found:
- A 6% overall drop in overall estate planning participation
- A 16% drop among lower-income Americans
- Young adults aged 18–34 were the only group that didn’t show a decrease
Forbes echoed these concerns, pointing out that many Americans underestimate how much an estate plan can protect their family’s financial well-being. The numbers tell us that most people know they should have a plan, but few follow through.
The Risks of Not Having a Will
Without a will, your assets will be distributed based on state laws, not your wishes. That can create legal battles, delays, and unnecessary costs. Risks include:
- No control over who inherits your property
- The state appoints guardians for your children or pets
- Family disputes over sentimental or high-value items
- Expensive and time-consuming probate court proceedings
- No opportunity to leave gifts to charities or causes you care about
The Risks of Not Having an Estate Plan
Even if you’ve drafted a will, a lack of full estate planning still leaves you, and your loved ones, vulnerable:
- No one authorized to make financial or medical decisions on your behalf
- Assets may go through probate, delaying distribution
- Missed tax-saving opportunities for your heirs
- No plan for managing digital assets (online accounts, cryptocurrency, etc.)
- No strategy for long-term care or incapacity
- Increased stress and uncertainty for your family during a crisis
Who Needs an Estate Plan?
If you think estate planning is only for the wealthy, think again. If you have assets, dependents, or a preference about how your affairs should be handled, you need an estate plan.
That includes:
- Parents of minor children
- Homeowners
- Business owners
- People with retirement accounts, insurance policies, or investment portfolios
- Individuals with aging parents or special-needs dependents
- Anyone with personal or digital property they want to pass along
It’s Not Just About the End. It’s About the In-Between
One of the most overlooked parts of estate planning is preparing for incapacity. Illness, injury, or cognitive decline can happen unexpectedly. Without powers of attorney and healthcare directives, your family may be left scrambling in a legal gray area, unable to access your accounts, make healthcare decisions, or carry out your wishes.
A will does nothing for you while you’re alive. A modern, comprehensive estate plan bridges the gap between today and tomorrow.
Estate Planning Importance Can’t be Overlooked
Estate planning isn’t a task for someday. It’s a key component of financial wellness. And it’s one that grows more important with each life stage.
At Morrison Wealth Advisors, we believe planning for the future is an act of care—for yourself and the people you love. Whether you’re just getting started or want to update existing documents, we’re here to help you build a plan that reflects your values and protects your legacy.
Don’t let a lack of preparation dictate your future. A well-crafted estate plan is more than just paperwork. It’s peace of mind. Are you looking for assistance in creating your estate plan? Contact our team at Morrison Wealth Advisors today.
