Only 26% of Americans Have an Estate Plan

Fifty-one percent of parents with children 21 and older reported having made significant financial contributions to their children already. Fifty-three percent said they have been or expect to be approached by their children for help on a significant expense.

Seventy percent of male and 53% of female respondents reported that giving in significant amounts during their lifetime is reflected in their estate plan, or will be if applicable.

Here’s how men and women compare on big-ticket and smaller, recurring expenses that they pay for adult children: 

• Education: 35% for men vs. 26% for women
• Weddings: 26% vs. 24%
• Homes: 25% vs. 20%
• Cars: 29% vs. 22%
• Groceries: 31% vs. 34%
• Utilities: 22% vs. 25%
• Internet/cell phone bills: 13% vs. 17%

Spradling said it is clear from the data that parents are increasingly giving while they are still alive, rather than after their deaths, to help their adult children. 

“Given this shift in giving habits, financial planning professionals are ideally suited to maximize intergenerational wealth for their clients through greater attention paid to estate planning,” she said.

The survey also identified a growing trend among younger generations of giving beyond immediate family. Twenty-four percent of respondents said they plan to leave assets for people other than their spouse and children.

Thirty-three percent of millennials and Generation Z plan to do this, compared with just 19% of baby boomers and Gen X. These disparities appeared with regard to both leaving assets to friends and leaving assets for charity.

Don’t Forget Pets

According to FreeWill, 6 million pets are sent to shelters each year, and responses indicate that this could continue, particularly among older generations.

Some two-thirds of respondents reported that they own a pet, but only half of pet owners with an estate plan said they had accounted for their pet via a will or pet trust. Twenty percent said they have informal agreements with others to care for their pet, and the rest have no plan.

Thirty-one percent of boomers and older respondents with both a pet and an estate plan said they account for their pets with a will or pet trust. In contrast, 69% of millennials and Gen Zers who have a pet and an estate plan have formally accounted for their pets via a will or pet trust.