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.
