Insights from Caring.com’s 2024 Wills Survey
Over the past several decades, the American economic landscape has been characterized by escalating income inequality and, more recently, inflation spikes that have made everyday goods and necessities more expensive. According to the Federal Reserve, inflation impacts lower-income households more severely than those with higher incomes, further exacerbating economic disparities across regions. These economic conditions have not only influenced consumer behavior but have also permeated the realm of estate planning.
Caring.com’s 2024 Wills and Estate Planning Survey has captured this trickle-down effect, marking a concerning trend in estate planning. For the first time since 2020, there has been a decrease in the number of Americans with a will, down to just 32% in 2024—a 6% drop from the previous year. Notably, 40% of respondents without a will cite the lack of sufficient assets to leave behind as the primary reason, with lower-income Americans being twice as likely to report this compared to the wealthiest tier.
Patrick Hicks, General Counsel at Trust & Will, stresses the universal necessity of estate planning, “Wills and estate planning are essential for everyone, not just the wealthy. Every person over the age of 18 should have an estate plan, no matter their financial situation.” This statement underlines a critical misunderstanding among the public: estate plans are often seen purely in the context of asset distribution, overlooking other vital functions.
The survey revealed that 35% of respondents without a will—despite not having significant assets—do have dependents under the age of 18, illustrating a gap in awareness about the broader implications of estate planning. Hicks elaborates, “Wills do more than handle financial assets—they allow you to control important healthcare decisions, designate what happens with your digital and social media assets, and provide specific guidance on how and by whom minor children should be looked after in the event of an emergency.”
The overall findings from the 2024 survey are sobering, with a 6% decline in estate planning across the board and a sharper 16% decline among lower-income Americans. However, the data also highlights a silver lining among younger adults aged 18-34, who have maintained their estate planning rates since 2020. This demographic contrast points to varying levels of awareness and priorities across different age groups.
Despite the general downturn, 64% of Americans acknowledge the importance of having a will, aligning with sentiments from previous years. Yet, the actual participation in estate planning fails to reflect this perception, underscoring a significant disconnect and the need for enhanced public education on the importance of estate planning, irrespective of one’s income level.
The survey also shows divergent trends among racial groups: while estate planning has increased among Black Americans—rising by 8% since 2023 and 19% since 2020—it has declined among White and Hispanic Americans. This indicates changing dynamics and growing awareness within different communities about the protections estate planning affords.
In response to these insights, Caring.com has partnered with YouGov to conduct detailed surveys since 2015, aiming to illuminate the reasons behind the fluctuating rates of estate planning and to advocate for broader understanding and engagement in this crucial aspect of financial health.
As we move forward, the importance of continuing to educate and provide accessible resources for estate planning becomes even more critical. Despite economic pressures and widespread misconceptions, ensuring that all Americans understand and can engage in estate planning remains a priority for organizations like Caring.com, aiming to secure a more equitable and prepared future for individuals from all walks of life.