Poll shows Americans lack action when it comes to estate planning

Survey of US adults finds stunning shortfalls, with behavioral differences running along gender, wealth, and generational lines.

A recent survey from FreeWill, a company focused on combining philanthropy with estate planning, sheds new light on Americans’ attitudes on estate planning, and how much of that planning they actually do.

According to the poll, which draws on responses from 2,000 adults, seven-tenths (69 percent) of Americans agreed that estate planning is at least somewhat crucial, but only a quarter (26 percent) have taken steps to formulate a plan.

“The unfortunate lack of estate planning in this country, despite its widely acknowledged importance, is a growing problem perpetuated by the oldest members of the Baby Boomer generation having now surpassed the average life expectancy,” Jenny Xia Spradling, co-CEO of FreeWill, emphasized in a statement.

With the $84 trillion wealth transfer already in full swing, the survey suggests an urgent need for structured estate planning. Financial advisors appear to be key agents of change, as respondents who said they work with an advisor are reportedly four times more likely to have an estate plan compared to those who are unadvised (65 percent versus 17 percent).

An overwhelming 90 percent of individuals working with advisors also acknowledged the importance of estate planning, outpacing the 65 percent among those without advisors. Additionally, the likelihood of completing an estate plan in the next two years doubles for clients working with advisors compared to those without (59 percent versus 29 percent).

The poll also found that financial behaviors and estate planning tended to differ by gender and wealth levels. Tellingly, more than half of the individuals with assets exceeding half a million dollars have established estate plans. Men were also more likely to have an estate plan than women (32 percent compared to 23 percent) and place importance on having one (74 percent compared to 67 percent).

Xia Spradling emphasized the evolving nature of financial giving, which now includes parents supporting their adult children through significant life events such as education and weddings.

Among parents with children aged 21 and older, 51 percent said they’ve already provided support with significant financial contributions. Another 53 percent have had their child ask for help, or are preparing to be asked, on a major expense like a home, a car, or a wedding.

Just over three-fifths of parents with adult children (62 percent) said they’re including early giving in their estate plans, whether they’ve formalized those plans or are still working on them. “Parents aren’t waiting to give until after they’re gone, they’re increasingly giving while they’re still here to help their adult children today,” Xia Spradling noted, underscoring the role advisors play in maximizing intergenerational wealth through focused estate planning.