Up to two-thirds of Americans lack an estate plan, and the reason for many may be their financial advisors.
According to a new survey by Trust & Will, almost half of advisors who are not affiliated with the online estate platform offer no estate planning services to their clients. And 25% of those advisors don’t have estate plans themselves, even though 98% of survey respondents agreed that financial advisors should encourage people to create estate plans.
The survey demonstrates that financial advisors have an opportunity to discuss and help clients navigate estate planning needs, according to a news release from Trust & Will. Not doing so may result in protracted probate battles, high fees, and general confusion when it comes to bequests and the deceased’s final wishes, according to the company’s probate study.
“Financial advisors may prioritize investments, insurance, and retirement, often deferring estate planning to attorneys or until later,” said Doug Luftman, Chief Legal Counsel at Trust & Will, in the news release. “However, estate planning is essential for ensuring that both advisors and their clients are protected in unforeseen situations. This is an opportunity for advisors to add value by integrating estate planning into their services — not only for their clients but for themselves.”
The Trust & Will survey was given to two groups: financial advisors affiliated with Trust & Will, and those who are not. Among advisors who are not, 97% reported that estate planning is essential, even for those individuals with modest assets. And 59% of advisors say that estate planning should start at a net worth of $250,000 or less, going against the idea that estate planning is for the wealthy.
The survey shows that Baby Boomers are the main users of estate planning: 72% of advisors say they’re the primary client base.
“Advisors often face the same obstacles their clients do — time, uncertainty, or the belief that estate planning can wait,” Luftman said. “But life is unpredictable. By taking steps to secure their own estate plans, advisors set an example and can better advocate for their clients to do the same, ensuring that families avoid unnecessary financial stress in difficult times.”
