Recently, I geared up for various challenges at the Seafire Wellness Festival held in Grand Cayman, located in the Cayman Islands. Among the activities was an ice bath, which I anticipated as the ultimate challenge—a chilling immersion set to test both my physical endurance and mental resilience.
However, the true surprise emerged during a financial wellness discussion. When the host inquired about who had a will, I felt a wave of embarrassment ripple through me. I take pride in my financial responsibility—I regularly check my credit score, maintain an extensive budget, and even have an emergency fund set aside. Yet, here lay a significant oversight that I had completely ignored. I scanned the audience, feeling starkly vulnerable. A will: such a basic element of adult financial planning, yet it had utterly eluded me.
It turns out I am not the only person who has overlooked this matter. According to Caring.com’s 2024 Wills and Estate Planning Survey, a shocking statistic reveals that only a mere one-third of adults in the U.S. possess a will. Many shy away from it, perceiving it as a legal quagmire, but the urgency of its necessity remains. Drafting a will is not merely a privilege reserved for the affluent—it serves as a vital safeguard for those we care about.
The psychology of avoidance
I’m not alone in my reluctance. The process of estate planning can provoke intense anxieties. As Dana Blue, an expert in estate law, notes, “Many individuals shy away from estate planning because it requires them to face their own mortality, which can be daunting.”
This unease goes beyond procrastination. “Many individuals consistently find it challenging to contemplate their future selves and misjudge how swiftly time flies,” explains Aja Evans, a financial therapist. “It’s quite common to dodge discussions regarding death. People prefer to avoid such topics, viewing them as problems pertinent to the future rather than something inevitable.”
Evans stresses that the emotional turmoil tied to estate planning—such as fear, anxiety, stress, and apprehension—can deter proactive measures. However, confronting this discomfort ultimately brings peace of mind.
“Being aware that your preferences are documented… [can] reduce anxiety about what occurs after your passing,” Evans explains.
Blue observes that younger individuals and those who are unmarried often convince themselves that wills are necessary only for others—those who are older, wealthier, and closer to life’s end. For individuals caught managing both children and aging parents, often referred to as the “sandwich generation,” estate planning may seem like just another item on an endless checklist.
Nonetheless, Blue emphasizes that estate planning transcends wealth; it’s about ensuring your desires are fulfilled. “It’s about providing peace of mind for both yourself and your family,” she asserts. “It’s a proactive demonstration of love and accountability.”
Will vs. living will: What’s the difference?
Two crucial documents form the cornerstone of any estate strategy: a will and a living will. Although they are frequently conflated, their functions are markedly different.
“A will delineates the distribution of your assets after death and designates individuals to manage your affairs, including executors, trustees, and guardians for minor children,” explains Elizabeth Candido Petite, a partner specializing in trusts and estates. “Conversely, a living will articulates your preferences for medical treatment if you are alive but unable to communicate.”
Petite stresses the importance for young adults, particularly those who travel frequently or engage in high-risk activities, to prioritize drafting a living will, as it “can ensure your healthcare choices are respected no matter where you find yourself,” she states. Advance directives, which appoint an individual to make healthcare choices on your behalf, are equally significant.
When combined, a will and a living will guarantee that both your health and financial matters are managed according to your preferences—even if you are incapacitated.
Sorting through digital assets
Estate planning has evolved into a more intricate procedure and now includes more than just bank accounts and physical properties.
“Individuals frequently neglect digital assets, including online accounts, cryptocurrency, and intellectual property,” Blue notes. As our lives transition further into the digital realm, these assets must be encompassed in estate plans. What are your intentions for your online legacy?
Petite adds, “Wills now need to address the transfer or management of digital assets, incorporating secure methods for sharing access to cryptocurrency wallets.” For those engaged in digital entrepreneurship, this also includes streams of revenue from e-commerce or monetized content. Without adequate preparation, families could lose vital financial and sentimental assets.
By including digital assets in a will, you ensure that everything—from social media accounts to digital currencies—is handled according to your stipulations.
When should you start estate planning?
Both Blue and Petite agree that estate planning should commence with the attainment of financial independence. Blue recommends beginning with the basics: “Every individual should have a last will and testament once they reach adulthood, particularly if they own property, have dependents, or possess significant savings.”
She also points out crucial life events that should trigger the creation or revision of a will, such as marriage, the arrival of a child, or the acquisition of significant assets. “For younger adults, the focus may begin with basic instructions, but the complexity should expand alongside life stages,” she observes.
Once you possess your will, it is essential to perform regular updates. Blue suggests reviewing your will every three to five years or following significant life transitions to confirm it accurately reflects your current situation.
Overcoming barriers
The primary hindrance to estate planning often stems from the belief that it is prohibitively expensive or overly complicated. Blue debunks this misconception: “Many think that drawing up a last will and testament is too costly or solely for the affluent. In truth, an attorney can assist in crafting a customized plan at an affordable price. The cost of a will prepared by a lawyer typically represents 1% or less of one’s total assets.”
The second barrier? Initiating the conversation. Discussing wills can be sensitive, but the holiday season provides an excellent opportunity to broach such topics in a more compassionate context.
Considering the challenges of ensuring everything is orderly financially while navigating grief, it is beneficial to frame it as a means of protection and care for one another.
“Using ‘I’ statements to express your feelings and thoughts can be immensely helpful,” Evans remarks. “Convey to your loved ones why this matter is significant for you and the family… Ensuring everyone is aligned and their legacy is respected in accordance with their wishes is of utmost importance.”
