Advisors Encourage Clients to Create Estate Plans, but Many Don't Have One

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Nearly all financial advisors in a new survey from Trust & Will agree that the industry should encourage people to create estate plans, yet nearly half of advisors who are not affiliated with the online estate platform do not offer the service.

Not only that, a quarter of these non-affiliated advisors — along with some two-thirds of Americans — do not themselves have an estate plan.

"Financial advisors may prioritize investments, insurance and retirement, often deferring estate planning to attorneys or until later," Doug Luftman, chief legal counsel at Trust & Will, said in a statement. "However, estate planning is essential for ensuring that both advisors and their clients are protected in unforeseen situations."

Previous research by Trust & Will found that two-thirds of Americans would seek guidance from a probate attorney during the probate process. And with good reason: Fifty-two percent of Americans see probate as emotionally and procedurally complex, and only 40% believe that they really understand the process. They also seriously underestimate the duration and costs associated with probate: an average of 20 months and more than $10,000.

"This is an opportunity for advisors to add value by integrating estate planning into their services — not only for their clients but for themselves," Luftman said.

The new survey was conducted Aug. 20, using the TypeForm platform. It included responses from two groups: 145 financial advisors with no association to Trust & Will, and 142 advisors who are affiliated with the platform.

The Opportunity

Two-thirds of Trust & Will-affiliated advisors reported that integrating estate planning into the services that they offer has strengthened their client relationships. Seven percent also said that their assets under management had increased as a direct result of offering estate planning as a service.

Nonaffiliated advisors often outsource their estate planning clients to other providers, limiting their ability to fully capitalize on client retention and business development opportunities. In the survey, they cited legal concerns, cost and lack of expertise as the most significant barriers to offering estate planning services.

The survey findings challenged the notion that only high-net-worth individuals need estate planning. The majority of advisors in both samples agreed that estate planning should begin for clients with a net worth of $250,000 or less.

Trust & Will affiliates are even more proactive, with 44% saying that estate planning is necessary for individuals with a net worth starting at $50,000.

Both affiliated and non-affiliated advisors reported that they predominantly serve baby boomers, who are at the forefront of the so-called great wealth transfer. But the anticipated surge in estate planning demand brought on by this phenomenon remains inconsistent, the survey found.

Only 45% of advisors said they have noticed an increase in client demand driven by money passing to younger generations.

Still, involving the next generation in estate planning discussions is a critical yet underused strategy for family asset retention. Thirty-seven percent of Trust & Will advisors said they regularly engage clients' adult children in estate planning discussions.

This proactive approach both ensures smoother wealth transfers and strengthens long-term client relationships that span generations. Forty percent of Trust & Will affiliates reported that they have successfully retained more than half of their deceased clients' assets.