Far too many American adults have no will and have granted no powers of attorney. Surveys say the number is as high as 60%.
One of the big barriers is the cost of preparing an estate plan as compared to what people have to leave behind. Costs range from free for DIY solutions for very simple distributions; to hundreds of thousands of dollars for large and complex estates. Commonly among attorneys in the central Texas area, rates run from $800-$7,000 for the basics up to the simple trust plan.
According to an article in US News and World Reports from March 2023, the median net worth for American adults is $121,760 as of September 2020. With a net worth in that range, many people do not think they have enough for an “estate” plan or attorney. An estate plan is more than just a will. It also involves powers of attorney, directing who will make financial and medical decisions in the event a person needs care. However, the financial power of attorney can be useful if you are simply out of the country or need help paying daily bills. Both young and old can benefit from having chosen who will make those decisions. A person without these basic documents who needs assistance and lacks capacity to execute them will be facing a guardianship proceeding. A person with capacity may face rush fees or difficulty finding an attorney who can provide emergency planning when time is short.