Two-Thirds of Americans Don't Have an Estate Plan: Survey

What You Need to Know

72% of women and 59% of men in a recent survey said they do not have an estate plan.
The top reason respondents cited for not having an estate plan is thinking they don’t have enough money to warrant one.
Respondents who have worked with a financial professional report feeling more confident and prepared to discuss their estate plan and end-of-life wishes.

COVID-19 has claimed the lives of more than a million Americans, but that statistic hasn’t inspired many to put more thought into their end-of-life planning. Only 34% of American adults have an estate plan, and of those, 20% have not updated their plan in the last five years, according to a study released Tuesday by D.A. Davidson & Co., an employee-owned financial services firm.

Seventy-two percent of women in the study do not have an estate plan, compared with 59% of men.

The findings are just as bad for a health care power of attorney. Thirty-three percent of Americans have one, and just 30% accurately understand what this is.

Working with a financial professional makes a difference. Half of those who have done so have created a health care power of attorney, compared with 20% of those who have not. Across generations, 30% of Generation Z, 25% of millennials and 27% of Gen X have a health care power of attorney.

“Americans are vastly underprepared to pass on their assets according to their wishes and to care for loved ones in the event of a medical emergency,” Andrew Crowell, vice chairman of wealth management at D.A. Davidson, said in a statement. “If the COVID-19 pandemic has taught us anything, it’s the importance of being prepared for life’s uncertainties, and creating a focused and detailed estate plan can do just that.”

Directions Research conducted the online survey in early September among 2,094 U.S. adults.