A $41 Trillion Market - Why Legacy Planning Matters, and What it Takes

"It may not lead to anything for him, but in the long run, it leads to a very strong relationship because you're helping the client to achieve their goals," Altman said.

The emotional side
Krooks has had clients who survived the Holocaust, came to the U.S., and started a successful family business. He's known people who have spent years in prison and, upon their release, have made good lives for themselves and their families. And some of his clients have themselves been engaged in financial disputes with their own family members when dealing with the estate of a loved one.

"These people want to impart upon their kids the lessons and values they learned so their kids won't make the same mistakes," said Krooks.

A common way to pass along these values and life lessons is through the use of ethical wills. While not legally binding, such documents can be extremely satisfying for clients, beneficiaries, and agents alike.

When helping clients create an ethical will, said Krooks, he uses a list of questions to help them along but otherwise does not direct them in any way — these wills should come straight from the client, in their manner of speaking and writing.

"There will be some agents — not all — who will really care a lot about this and they'll get satisfaction out of helping the client walk through the process," he said. Just start talking, and if you see interest, probe further and see what happens."

What does it take?
According to Dychtwald, Age Wave asked boomers and elders to choose the celebrity who best engenders the ideal characteristics of the perfect legacy advisor. Included on the list were Billy Graham, Sandra Day O'Connor, Suze Orman, and Oprah Winfrey. And who did they choose? Hands down, Oprah Winfrey.

Then, they were asked to list qualities they look for in such an advisor. While a good understanding of taxation, investment, and the financial marketplace were on the list, these fell far behind honesty, trustworthiness, and good listening and explaining skills.

"They wanted people with not only financial acumen, but as or more important is someone who could deal with the emotional, experiential, and more holistic dimensions of a person's life," Dychtwald said. "It's not the kind of things many financial advisors are good at. People want a person with a good bedside manner and good communication and mediation skills."

Because this is not an immediately lucrative niche, added Krooks, it may turn off many planners and attorneys.

"This is not for somebody who wants to be at the top of the sales charts every year — it's for somebody who wants to go beyond the X's and O's," he said. "I don't know if there are any qualifications or requirements, but you have to care about it. You can't be motivated by financial concerns."

The legacy planning market is huge. According to the Boston College Center on Wealth and Philanthropy, about $41 trillion is set to be passed down from generation to generation over the next 50 years, with some estimates as high as $136 trillion. And often, said Dychtwald, when the money passes, the advisor does not get passed onto relatives along with it — 80 percent of the time, in fact. Legacy planning is a satisfying and effective way to make sure you not only hold onto your client base but also gain new clients in the generations to come.

"At the end of the day, you will be compensated on the financial transaction," said Dychtwald, "but allowing people to talk about what matters and how they want to be remembered, you can make a friend and have an enormous impact on a family. This is a tremendous opportunity for business building."

Christina Pellett is managing editor of the Agent's Sales Journal. She can be reached at 800-933-9449 ext. 226 or [email protected].