Financial stress is one of the leading causes of anxiety and sleep loss for many Americans today. Uncertainty about the future, money worries, and lack of clear plans for your assets can take a heavy toll on both mental and physical health. Fortunately, proactive estate planning—such as creating or updating a will—can help ease these concerns by providing clarity, control, and peace of mind for you and your loved ones.
In this article, we explore the connection between financial stress and estate planning, share important data on how money impacts mental health, and offer practical steps you can take to reduce stress through thoughtful planning.
Takeaways
Estate Planning to Reduce Stress: The Finances
A 2024 Gallup survey found nearly half of Americans frequently feel stressed—a 16-point increase over 20 years, the highest in 30 years.
Sleep deprivation is linked to stress. According to the American Psychological Association (APA), less sleep leads to more stress, creating a cycle.
The APA’s annual “Stress in America” report shows financial strain is a top stressor, especially for younger adults:
| Age Group | Percentage Reporting Money as Significant Stressor |
|---|---|
| 18-34 years old | 82% |
| 35-44 years old | 77% |
| 45-64 years old | 63% |
| 65 years and older | 47% |
A Bankrate survey also found money is the leading cause of sleepless nights, negatively affecting nearly half of respondents’ mental health. Meanwhile, 73% of Americans ranked finances as their top stressor in a Capital One survey.
Other key stressors include work, healthcare, relationships, and current events. Before the 2024 election, 70%+ of adults cited national and economic concerns as top stressors (APA).
Stress and Procrastination: A Vicious Cycle
Stress often leads to procrastination, which increases stress, creating a negative feedback loop known as the stress-procrastination cycle.
This cycle can prevent important tasks like estate planning. A 2025 survey revealed procrastination is why only 24% of Americans have a will, 13% have a living trust, and 4% have other estate documents.
Many estate plans are outdated, showing procrastination in updates. Experts suggest reviewing your estate plan every few years or after major life changes like inheritance or family growth.
Stress, Uncertainty, and Planning
Stress is a natural response to perceived threats, activating “fight-or-flight” mode.
Research shows uncertainty causes stress by making decision-making difficult and increasing worry, which perpetuates stress.
Proactive coping — planning ahead to avoid stress — is scientifically proven to reduce stress, especially when combined with mindfulness.
However, stress can impair planning. Stanford research found lower stress improves goal-directed behavior and future planning.
Mental and financial health are linked. Improving financial health can boost mental well-being (data).
The APA recommends identifying financial stressors and making plans to manage them:
| APA Recommendations to Manage Financial Stress |
|---|
| Don’t get caught up in doom-and-gloom news cycles. Stay informed but avoid panic. |
| Turn negative stress coping mechanisms into positive, healthier habits. |
| Focus on controllable factors. Identify financial stressors, create a plan, and review regularly. |
| Seek professional support. Talk to psychologists and financial planners for guidance. |
Estate Planning and Stress Management
Not having an updated estate plan can increase uncertainty, anxiety, and cause family disputes due to vague or outdated documents.
Estate planning is a vital part of managing personal and family finances. Incorporating coping mechanisms creates a sense of control, lowers stress, and supports long-term goals.
Studies consistently show that perceived control over life events buffers stress and negative emotions.
The APA advises focusing on controllable aspects to reduce stress. Estate planning brings financial clarity, avoids family conflicts, lowers tax burdens, and eases decision-making for loved ones during crises.
Essential Estate Planning Steps to Reduce Financial Stress
| Step | Description |
|---|---|
| Create a Basic Will | Clearly outline how your money and property will be distributed. |
| 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 if incapacitated. |
| Consider a Financial Power of Attorney | Designate someone to manage your finances if you become unable. |
| Organize Important Documents | Gather key legal and financial documents in one accessible place. |
| Talk With Loved Ones | Discuss your wishes to reduce anxiety and prevent misunderstandings. |
| Consult with an Estate Planner | Seek professional advice to tailor your plan to your needs. |
Take Control of Your Future
You can’t predict the future, but you can prepare for it. Estate planning is a proven strategy to reduce stress, protect your family, and secure your legacy.
We hope you found this article helpful. If you’d like to discuss your specific situation, please contact us or call our Searcy, Sherwood, or Benton office at 501-834-2070 to schedule a consultation. We look forward to assisting you.