Steps to Avoid When Writing Your Will: Expert Advice on What to Exclude
The 2025 Caring.com Wills and Estate Planning Study has shed light on several common errors in estate planning, particularly for women and single adults.
Not Having a Will
A concerning statistic from the report shows that only 24% of Americans have a will as of 2025, a decrease from 33% in 2022. This lack of a will can result in assets being distributed according to state laws rather than personal wishes, and may leave minor children without court-named guardians.
Procrastination and Misconceptions
Many people delay estate planning due to uncertainty about the process or the false belief that legal costs are only relevant for the wealthy.
Failing to Address Unique Financial Challenges for Women
Women often face unique financial challenges, such as living longer and potentially having career breaks for caregiving, which can lead to lower lifetime earnings. Proper estate planning can help ensure financial security and avoid probate complications.
Neglecting Key Estate Planning Documents
Essential documents such as wills, trusts, powers of attorney, and advance healthcare directives are often overlooked, leaving one's wishes unclear or assets vulnerable.
Not Updating the Estate Plan
Life changes such as marriage, divorce, childbirth, or financial changes require timely revisions to keep the plan current and effective.
Avoiding Probate Through Proper Planning
Without clear estate plans, assets may be tied up in probate—a costly, public, and lengthy court process that undermines financial security and privacy.
For Single Adults, Failure to Name Guardians or Decision-Makers
Without spouses, single adults must explicitly designate healthcare proxies and guardians for children or dependents to avoid court appointments.
The findings of this study underscore the importance of proactive, comprehensive estate planning tailored to individual circumstances, especially for women and single adults who face specific risks and challenges.
Other Important Considerations
- Conditional gifts can lead to complications and legal challenges, making an estate more difficult to settle.
- Pets cannot be named as beneficiaries or inherit anything from a will.
- Social security numbers, financial account information, and passwords to accounts should not be provided within a will due to its public nature and the risk of unauthorized access.
- Non-probate assets are all assets that have a designated beneficiary and are not controlled by a will.
- Funeral arrangements should not be specified in a will as they may not be reviewed until after the funeral.
- Guns should not be distributed by will due to state and federal regulations, and a gun trust is recommended for their transfer and tracking.
- Passing business interests within a trust can provide more privacy for business holdings and information.
- The 2025 GOP tax bill could change estate planning strategies for some individuals.
- It's important to be careful when leaving assets to a person with special needs, as improper planning could jeopardise their government benefits.
- The 2025 estate tax exemption is a significant amount, but the details of the bill could affect its impact on individual estates.
These findings serve as a reminder for the importance of thorough, personalised estate planning to ensure that one's wishes are carried out and their loved ones are protected.
- Given the unique financial challenges women frequently encounter, such as longer lifespans and potential career breaks, it's essential to incorporate personal-finance considerations into comprehensive estate planning.
- To avoid the complexities and potential legal challenges associated with conditional gifts, it's advisable to consult with a financial advisor or estate planning professional.
