1 IN 4 FINANCIAL ADVISORS LACK ESTATE PLANS

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Oct 17, 2024, 10:22 ET

Do as I say, not as I do: New Trust & Will survey reveals that advisors encourage estate planning for clients, but many don't have their own end-of-life affairs in order

SAN DIEGO, Oct. 17, 2024 /PRNewswire/ -- As many as two-thirds of Americans have no estate plan. The results of a new national survey of 280 financial advisors from leading online estate platform Trust & Will may explain why: almost half of those not affiliated with Trust & Will don't offer estate planning services to their clients, and 25% of those don't have estate plans themselves. Yet, 98% of all those surveyed said they believe financial advisors should encourage people to create estate plans.

The Bureau of Labor Statistics data shows there are over 330,000 financial advisors in the U.S. who help clients manage their finances. While many focus on growing wealth during the boom years and maximizing savings during retirement, Trust & Will's findings show that there is an opportunity for financial advisors to discuss and help clients navigate estate planning needs. 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 as demonstrated in Trust & Will's probate study.

Doug Luftman, Chief Legal Counsel at Trust & Will, emphasized the disconnect: "Financial advisors may prioritize investments, insurance, and retirement, often deferring estate planning to attorneys or until later. 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."

Why Estate Planning Matters

The Trust & Will survey was administered to two distinct respondent groups: financial advisors who are affiliated with Trust & Will, and those who are not. Of those who are not, 97% reported that estate planning is essential, even for those individuals with modest assets. A majority of advisors (59%) believe estate planning should start at a net worth of $250,000 or less, challenging the notion that estate planning is only for the wealthy.

Data showed that Baby Boomers dominate estate planning: 72% of advisors say they're the primary client base: As the "Great Wealth Transfer" looms, Baby Boomers are at the forefront, making estate planning a critical service.

Luftman added, "Advisors often face the same obstacles their clients do—time, uncertainty, or the belief that estate planning can wait. 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."

Methodology

This survey was conducted on August 20, 2024, using the TypeForm platform. It included responses from two groups of financial advisors: 145 advisors with no association to Trust & Will, and 142 advisors who are affiliated with the platform. The survey aimed to uncover insights on estate planning practices and challenges within the financial advisory community.

ABOUT TRUST & WILL
Trust & Will is simplifying estate planning and settlement with attorney-approved, legally valid documents and processes designed to adhere to individual state guidelines. Since 2017, we've helped hundreds of thousands of Trust & Will members leave their legacy with an affordable way to create an estate plan or settle the estate of a loved one. Our platform uses bank-level encryption that protects customer data and complies with the highest security standards, including SOC 2 and HIPAA. Trust & Will is a certified B Corporation and is the official estate planning benefit provider for AARP members, along with several leading financial institutions, who all believe in our mission of helping every family leave their legacy. To learn more, visit trustandwill.com.

Trust & Will is an online service providing legal forms and information. Trust & Will is not a law firm and does not provide legal advice.

SOURCE Trust & Will