A new study recently published by Fidelity Investments indicates that most people understand the need for clear conversations about wills and estate planning. In fact, their 3rd Biennial Family and Finance Study identified that 90% of parents and their adult children see this as an important process.
However, there is a major disconnect between whether or not these conversations have already happened. Just over 50% of adult children identified that their parents have had these conversations with them already, but almost 70% of parents believe that they had already engaged in that detailed conversation.
Failing to have a plan in place can lead to great deal of confusion and frustration after a family member passes away. Legacy plans that go unfulfilled, missing out on the wishes that a loved one had for his or her estate planning and costly problems are just a sample of the common mistakes that emerge. The Fidelity Study also identified that up to 70% of parents and children had major misunderstandings about the parents’ estate value.
Children underestimated their parents’ estate value by almost $300,000. While 80% of parents felt that their adult children knew where to find critical documents like health care proxies, powers of attorney and wills, only 2 out of 3 children said they know where to look.
Talk to your Pasadena estate planning attorney if you’re ready to take the next step with your estate planning goals.
