Lack of estate planning leads to family feuds, study shows

investmentnews.com:

Where there is a will — of the legal variety — there is a way to avoid family infighting.

According to a study released Tuesday by LegalShield, 90% of Americans say having a will is important, yet less than half actually possess one. The survey goes on to reveal that without proper estate planning, 58% of respondents have experienced family disputes and having assets fall under court control.

Laurie Humphrey, a financial advisor at Granite Financial, part of Osaic, says the most common reasons for clients not having completed legal documents are a lack of urgency and not knowing who to name as guardian for minor children. 

“As financial advisors, we should be holistic in looking at their entire financial picture,” Humphrey said. “Often, that might mean helping to coordinate with local attorneys to assist in getting the appointment with the client on the calendar. Because not everyone has a financial advisor, another option for solving this lack of planning might be encouraging employers to add it to the repertoire of employee benefit offerings.”

Attorney Asher Rubinstein, partner at Gallet Dreyer & Berkey, cites the additional reason that people are reluctant to confront their own mortality. 

“The subject of one’s own death makes people nervous or uncomfortable and causes people to delay dealing with one’s will and planning for one’s death,” said Rubinstein, adding that he encourages his clients to consider estate planning when they’re experiencing major life events like marriage, divorce, or the birth or adoption of a child.

As for the consequences of not creating a will, Humphrey said a lack of planning can lead to a family falling apart when the matriarch or patriarch passes away. In her experience, many people think