Many estate planning attorneys experienced an increase in business during 2010, despite the recent economic downturn.
According to the Fourth Annual Industry Trends Survey, released Monday by WealthCounsel and Trusts & Estates magazine, 46% of estate planning attorneys saw an increase in business last year, up from 40% in 2009. Nearly half of respondents expect business to increase by 20% or more over the next five years, up six percentage points from last year's survey.
Another key finding was that most Americans do not have an estate plan or even a basic will. When asked why this is so, 67% of respondents thought consumers lack awareness of the benefits and negative consequences. Sixty-two percent said that Americans erroneously assume that estate planning is only for the wealthy, and 51% indicated that consumers fail to realize the legal limitations of joint tenancy and beneficiary designations.
The main reasons their clients do plan, in nearly equal measure, are to minimize estate taxes, avoid family chaos after death and avoid probate.
Other findings summarized in the report include clients' average age (24% each are in the 50 to 59 and 60 to 69 age brackets) and their net worth (58% of married clients and 42% of single clients have assets in excess of $1 million). The key challenge attorneys face in their practices is getting referrals from other professionals, followed by getting prospective clients to engage in planning.
The Fourth Annual Industry Trends Survey drew participation from 831 estate planning attorneys from nearly all 50 states and carried a margin of error of +/-3.4%.
Established in 1997, WealthCounsel is a membership-based organization of more than 2,200 attorneys and the creator of the WealthDocx estate planning drafting software used by attorneys in all 50 states.
Published since 1904, Trusts & Estates focuses on new tax legislation, ethics, investment strategies, financial planning, elder law, charitable giving and financial services.
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