95% of Affluent Investors Need to Update Their Estate Plans: Are You Prepared?
According to a new report from Escalent’s Cogent Syndicated division, a staggering 95% of affluent investors need to either create or update their estate plans. With the $90 trillion intergenerational wealth transfer underway, many are not fully prepared for the complexity that lies ahead. The report titled Trajectory of Intergenerational Wealth Transfer highlights a critical gap in wealth transfer planning that could have a long-lasting impact on investors and their families.
What’s the Problem?
Many investors are still without crucial estate planning documents. In fact, more than three in ten affluent investors don’t have a will or trust. Of those who do, a large portion is young enough that their current plans may need significant updates before the average life expectancy of 79.4 years. With life’s unpredictable nature—changing assets, evolving family dynamics, and shifting tax laws—estate plans should be reassessed regularly.
Opportunities for Estate Planners
As estate planning becomes more important with the $90 trillion wealth transfer, there is a significant opportunity for financial advisors and estate planners to assist their clients in reviewing and revising their plans. Millennials and Gen Z investors are particularly underprepared, with 42% of them lacking any formal estate plan despite already building wealth and expecting to inherit more.
While there is a growing interest in online tools for estate planning, millennials and Gen Z investors indicate that they still seek support from estate planning attorneys and financial advisors. In fact, about half of millennials plan to work with these professionals when creating their estate plans, signaling the demand for a hybrid approach combining digital tools and personalized guidance.
Proactive Assessments are Key
As Steve Ethridge, Senior Director at Cogent Syndicated, states, “Many affluent investors already have estate plans, but life’s unpredictable nature means these documents will need to be reevaluated.” By offering proactive assessments, financial advisors can not only ensure that estate plans remain up-to-date but also become indispensable partners in safeguarding their clients’ legacies.
What Should You Do?
Review Your Estate Plan: Ensure that your will, trust, and other legal documents reflect your current financial situation.
Consult Professionals: Work with both estate planning attorneys and financial advisors to integrate online tools and personalized services for a comprehensive approach.
Start Planning Now: If you haven’t already, create an estate plan to protect your assets and loved ones.
With the right planning, you can make the most of your wealth transfer opportunities and protect your legacy for generations to come.
