No, most people do not already have an estate plan. At least in the United States, studies have found that 67% of Americans do not have a plan at this time. The other 33% have done some level of estate planning, though it may not be very comprehensive.
It is worth noting that some of this comes down to age. Studies consider Americans across a wide range of age groups, and people are somewhat more likely to have an estate plan as they get older. But it still shows that most people have not done any planning, even though they could pass away unexpectedly at a relatively young age.
Why is this oversight so common?
Often, people do not make an estate plan just because they assume they are going to live longer. Life expectancy is in the late 70s, after all, so someone may think they do not need to write a will until they retire.
Another issue is that people are confused by estate planning. They think it is complicated or they do not know what documents they need.
A third reason is that people do not always understand that they need a plan to begin with. Maybe they are only focused on financial assets, for instance, so they think only rich people need an estate plan. In reality, people in any wealth bracket can use an estate plan to pass on family heirlooms, make future medical decisions and much more.
Drafting your plan
If you are in the 67% of Americans who do not have an estate plan, it may be time to fix that issue this year. Be sure you know what legal steps to take to set up your plan.