By Ronald Fatoullah and Stacey Meshnick
Uncertainty about one’s financial and legal future often leads to stress. Planning and taking proactive action can help you to feel more in control and can reduce anxiety. Having an updated estate plan reduces uncertainty and provides clarity for you and your loved ones.
A 2024 survey found that nearly half of Americans report that they frequently feel stressed, a 16-point increase over the past two decades and the highest level in 30 years. So, what is keeping Americans up at night? A report by the American Psychological Association states that financial strain is a predominant stressor for many: Eighty-two percent of 18-34 year-olds surveyed reported money as a significant stressor, compared with 77 percent of 35-44 year-olds, 63 percent of 45-64 year-olds, and 47 percent of those 65 and over. The American Psychological Association, Bankrate, and Capital One also found that work, health care, personal relationships, and current events are significant sources of stress for Americans.
Stress can also lead to procrastination, one of the top reasons individuals have not engaged in estate planning. The stress procrastination cycle worsens stress, leading to further avoidance and increased anxiety. A recent study showed that just 24% of Americans have a last will and testament, only 13% report having a living trust, while only 4% say they have “other” estate planning documents. Many individuals also have outdated estate plans, suggesting procrastination in updating them. It is important to update your estate plan every few years or in response to life or legal changes, such as windfalls or family changes such as birth, death, marriage, divorce, children no longer being adolescents, etc.
Mental health and financial health seem to be closely intertwined, and data strongly suggests that improving financial health can benefit mental health. Failure to implement a comprehensive estate plan can trigger uncertainty and anxiety.
The American Psychiatric Association recommends acting on aspects of life within one’s control to feel empowered and help mitigate stress. Estate planning can provide financial clarity and a sense of control during uncertain times. It can also avoid ambiguity to reduce family disputes, minimizing potential tax burdens, and relieving loved ones from making difficult decisions during a crisis. A knowledgeable elder law attorney will provide the clarity needed to eliminate such confusion. Treating estate planning as an extension of personal and family finances can help create a feeling of control that lowers stress levels while helping to achieve long-term goals.
There are actionable estate planning steps that can relieve financial stressors. At a minimum, creating a living trust will not only protect assets, but can clearly outline who will receive your money and property after you are gone. And a living trust can also avoid the probate of a last will & testament and is typically an even better estate planning option.
It is also important to have advance directives, such as a health care proxy, a power of attorney and a living will. Name someone you trust to act as your health care agent to make medical decisions on your behalf if you become unable to do so. Regarding your finances, create a power of attorney and designate a trusted individual(s) to manage your finances if you become incapacitated. A living will can set forth what your health care wishes are. It is also helpful to discuss your health care and financial wishes with your loved ones (without necessarily revealing every detail) to help foster understanding and mitigate anxiety about the unknown.
In conclusion, take the above steps. The attorneys at the Elder Law Practice Group of Meltzer, Lippe, Goldstein & Breitstone, LLP can provide guidance, create all necessary documentation, and support your financial and health goals. You cannot predict the future, but you can plan for what might happen using an informed approach to protect your family and legacy.
Ronald Fatoullah, Esq. Chairs the firm’s Elder Law Practice Group and is a Partner of the firm’s Trusts & Estates Practice Group. Stacey Meshnick, Esq. is a member of the firm’s Trusts & Estates and Elder Law Practice Group.
This blog posting is for informational and educational purposes only. It is general in nature and not person or circumstance specific. This blog posting is not intended, nor should it be construed as rendering independent investment, legal or tax advice. It may but does not necessarily constitute attorney advertising.