Stressed? Why a Little (Estate) Planning Can Go a Long Way

Takeaways

• Financial stress is a major contributor to stress. Proactive estate planning, such as creating a will, is one way to help reduce stress and provide a sense of control over one’s future.

April is Stress Awareness Month, a time to recognize the impact of stress on our lives and embrace strategies to manage it effectively.

Stress can negatively affect mental and physical health and cause us to procrastinate, leading to even more anxiety. Planning and taking proactive action, however, can help us to feel more in control.

Stress Awareness Month is a time to raise awareness about the impact of stress on our lives, recognize stressors, and promote effective strategies for managing stress. This includes having an updated estate plan that reduces uncertainty and provides clarity for you and your loved ones.

The Finances-Stress-Mind-Body Connection

A 2024 survey found that nearly half of Americans report frequently feeling stressed, a 16-point increase over the past two decades and the highest level in 30 years.

Sleep deprivation is also on the rise, which may be stress-related. According to the American Psychological Association (APA), stress and sleep are closely connected; those who sleep less feel more stressed, and vice versa.

So, what’s keeping Americans up at night? APA’s annual “Stress in America” report identifies financial strain as a predominant stressor for many: Eighty-two percent of 18- to 34-year-olds surveyed reported money as a significant stressor, compared with 77 percent of 35- to 44-year-olds, 63 percent of 45- to 64-year-olds, and 47 percent of those 65 and up.

A Bankrate survey similarly found that money is the leading reason Americans lie awake at night worrying. Nearly half of respondents said that money concerns negatively impact their mental health. And 73 percent of Americans ranked their finances as their top stressor in a Capital One survey.

APA, Bankrate, and Capital One also found that work, health care, personal relationships, and current events are significant sources of stress for Americans. Leading up the 2024 presidential election, more than seven out of 10 adults told APA that the future of the nation and the economy were their top concerns.

Stress can also lead to procrastination, creating a negative feedback loop. The stress-procrastination cycle worsens stress, leading to further avoidance and increased anxiety. The pattern repeats, with each instance of procrastination leading to more stress, making it harder to break the cycle.

Procrastination is cited in a 2025 survey as the top reason people haven’t engaged in estate planning. Just 24 percent of Americans have a will in 2025, 13 percent report having a living trust, and 4 percent say they have “other” estate planning documents.

Many also have outdated estate plans, suggesting procrastination in updating them. Experts recommend updating your estate plan every few years or in response to life or legal changes, like windfalls or family expansion.

Stress, Uncertainty, and Planning

Stress is the body’s response to a perceived threat or challenge, triggering “fight-or-flight” mode.

Research identifies uncertainty as the root cause of stress. One explanation for why uncertainty can cause stress is that it leads to indecisiveness and a dilemma as to what action one should take to prepare for the future and avoid a potential threat. Some theorize that worrying may be a way to stave off threats, reinforcing the stress mechanism.

Proactive coping — or planning to avoid a future stressful situation — is a scientifically backed way to reduce stress, especially when combined with mindfulness.

However, stress may also hinder our ability to plan. Stanford researchers found, for example, that lower levels of stress are correlated with more goal-directed behavior and the ability to think ahead.

Mental health and financial health seem to be closely intertwined, and data strongly suggests that improving financial health can benefit mental health.

Stress Awareness Month seeks in part to promote healthier stress coping mechanisms. The APA recommends identifying financial stressors and making corresponding plans to help avoid stress.

APA’s recommendations include:

• Don’t get caught up in doom-and-gloom news cycles. Pay attention to current events and how they affect you, but don’t panic.
• Turn a negative into a positive. Recognizing unhealthy stress coping mechanisms is the first step to overcoming them and setting new, healthier habits.
• Focus on what you can control and make a plan. Identify what’s causing your financial stress, formulate ways to address these issues, commit to a specific plan, and review it regularly.
• Get professional support. In addition to talking to a psychologist to cope with financial worries, consult financial planning professionals to help you take control over your assets and reduce stress.

Estate Planning and Stress Management

Not having an updated, comprehensive estate plan can trigger uncertainty and anxiety.

Lack of a clear will or trust often leads to disagreements among beneficiaries, as vague or outdated documents create confusion and differing interpretations of the deceased’s intentions.

Treating estate planning as an extension of personal and family finances by incorporating the coping mechanisms described above can help create a feeling of control that lower stress levels while helping to achieve long-term goals.

The link between perceived control and stress is well-documented. Studies consistently demonstrate that a higher sense of perceived control over life events acts as a buffer against stress and negative emotions.

APA recommends acting on aspects of life within one’s control to feel empowered and help mitigate stress. Estate planning can provide financial clarity and a sense of control during uncertain times. It can also avoid ambiguity to reduce family disputes, minimize potential tax burdens, and relieve loved ones from making difficult decisions during a crisis.

Here are actionable estate planning steps to relieve some financial stressors:

• Create a Basic Will. Clearly outline who will receive your money and property after you’re gone.
• Designate Beneficiaries. Ensure retirement accounts and life insurance policies have updated beneficiary designations.
• Appoint a Health Care Power of Attorney. Name someone you trust to make medical decisions on your behalf if you become unable to.
• Consider a Financial Power of Attorney. Designate someone to manage your finances if you become incapacitated.
• Organize Important Documents. Gather key financial and legal documents in one accessible place.
• Talk With Your Loved Ones. Discuss your wishes with your family (without necessarily revealing every detail) to help foster understanding and mitigate anxiety about the unknown.
• Consult with an Estate Planner. Seek guidance from an attorney or financial advisor.

Take Control of Your Future

Focusing on what you can control and performing tasks that support your goals are proven stress management techniques achievable through estate planning.

You can’t predict the future, but you can plan for what might happen using an informed approach to protect your family and legacy.

This April, in recognition of Stress Awareness Month, meet with a local estate planning attorney and take control of your future.