Will a Recession Impact Estate Planning? Here’s What You Should Know.
There’s been a lot of talk lately about whether a recession is coming — or whether we’re already quietly in one. No one has a crystal ball, but one thing is clear: economic uncertainty always gets people thinking about their future and their finances.
If a recession does hit, how could it affect estate planning? The short answer: it often makes estate planning more important — not less.
4 Reasons Estate Planning Increases During a Recession:
1. Uncertainty Makes People Take Action.
When the economy feels shaky, people naturally start asking:
- “Is my family protected?”
- “What happens if something happens to me?”
- “Is my plan up to date?”
We often see people who have been putting off their estate plan finally move forward simply because the unknown becomes harder to ignore.
2. It’s a Smart Time to Transfer Wealth.
Recessions can actually create estate planning opportunities, especially when it comes to gifting assets to your children or into a trust.
Why? Because when the value of assets like real estate, investments, or a business is lower, you can transfer more — with less tax impact. Then, when the market recovers, that growth happens outside of your estate.
It’s a classic “silver lining” strategy.
3. Business Owners Look for Protection.
Economic downturns often hit business owners hardest. That’s when questions like these come up:
- “How do I protect my personal assets from business risks?”
- “Is it time to create an LLC or trust?”
- “Do I need a succession plan if I need to exit?”
Estate planning isn’t just about death — it’s about protection while you’re living.
4. Health & Financial Decisions Become Top of Mind.
Recessions often bring job losses, health worries, and family stress. That leads to more people wanting:
- A healthcare directive (who can make decisions if you can’t)
- A power of attorney (who can handle finances if you’re unable)
- Clear beneficiary designations
- Plans to avoid probate and protect their family from legal headaches
Bottom Line: Estate Planning Isn’t Just for “Good Times.”
In many ways, uncertain times are when estate planning matters most.
Whether a recession comes or not, having a clear plan in place can provide peace of mind — for you, your family, and your legacy.
Ready to Get Your Plan in Place?
We’d love to help. Reach out to schedule a consultation and let’s talk about how we can protect what matters most — no matter what the economy does.
