Wills and bills

Only 35% of Americans now report having a will and only 21% have a trust arranged, according to a new survey commissioned by Lawyers.com.

The survey found that the percentage of Americans possessing estate planning documents such as wills, trusts or power of attorney has dropped considerably to only 51%. The survey also suggests that the ailing economy may be the reason for the slide, with three quarters of those surveyed saying the current downturn has made it even more difficult for them to plan for the future, and nearly half saying they are more focused on "the essentials" right now.

“The survey reveals an interesting trend toward sacrificing long-term planning in lieu of meeting short-term needs, which is understandable during a recession, but is a cause for concern if the unexpected were to take place," Sharon Lubrano, with LexisNexis.

Harris Interactive, on behalf of Lawyers.com, surveyed 1,022 Americans 18 and older in December 2009.

SURVEY FINDINGS
• In 2004, 55% of Americans reported having estate planning documents; that number increased to 64% in 2007, and declining to 51% in 2009.

• Americans having a will: 42% (2004), 45% (2007), 35% (2009)

• Americans having  power of attorney (for finances or healthcare): 33% (2004), 46% (2007), 29% (2009)

• Americans having a trust (living trust or other trust agreement): 21% (2004), 31% (2007), 18% (2009)

• For Americans who do not have any estate planning documents, 44% cite a greater focus on the "essentials" (e.g. paying bills, buying groceries, etc.) as the reason, 31% cite it’s not a top of mind concern right now, 11% don’t believe it is necessary and 9 percent believe it takes too much time to create one.

• Seven in ten Americans (71%) believe that given today’s economy, it is more important to focus on saving money for immediate needs than long-term planning of their estate.

• Nearly three-quarters of Americans (73%) agree that the current economic downturn has made it even more difficult for them to plan for their future.

• One in five Americans (20%) who do not have estate planning documents report that this is because they believe their spouse and/or children will automatically receive any assets, and 19% feel it is too expensive.