Why is legacy planning important?

There’s a huge intergenerational wealth transfer on the horizon, and it’s important to plan ahead. Without taking the initiative to discuss legacy planning with clients, financial professionals are at risk of losing assets under management.
87% of affluent investors report not using their parent’s financial professional.

of affluent investors report not using their parents' financial professional.1
70% of women switch their wealth relationship to a new financial institution within a year of their spouse’s death.

of women switch their wealth relationship to a new financial institution within a year of their spouse's death.2

High net worth individuals have expressed interest in discussing the following legacy planning topics with financial professionals3:

The bar graph shows legacy planning topics that high net worth clients are interested in talking about with their financial professionals: 16% strategic philanthropy; 20% facilitating discussions about the use of family wealth; 21% teaching children/heirs financial skills; 35% trust options and implications; 48% estate planning.
Enhancing the level of client trust in your relationships can set you up for successful legacy planning conversations. An important pathway to building trust is empathy.

Legacy Planning with compassion

Across all demographic groups recently surveyed to determine which factor is most impactful in driving trust, the greatest is empathy.4

“Performing empathy” drives greater trust among your clients and can make the difference for your business. Performing empathy is key to:

  • Enhancing client trust
  • Deepening client relationships
  • Retaining clients and assets
  • Differentiating yourself within an increasingly commoditized industry

The Nationwide Retirement Institute®
supports you as you work with clients on estate planning.

We have extensive resources available to help you respond with a deeper understanding of client wishes and family dynamics. We can help you with topics such as Aging with dignity and Bridging generations through estate planning.

Aging with dignity

You have unique insights into the understanding of your clients’ goals and objectives. You’ve helped your clients prepare for retirement, and it is a logical extension to help them plan for aging. Practicing empathy can help you get to a point where you can say confidently to clients:

“I see and understand how you see the world.”
“I see and understand who you are.”
“I see and understand who you want to be.”

This may sound like:
“Is it important to you that your children keep the family home?”
OR
“How do you want to address your personal care needs?”

Bridging generations through estate planning

What is estate planning?

Estate planning is the distribution of a client’s assets via wills, trusts and other means to reduce costs and tax liabilities while respecting the client’s wishes.

By leading with empathy, addressing aging and helping clients plan for their estates, you can help bridge generations. It gives you the opportunity to maintain current business or even expand your business to the next generation.

Download
click outline
Learn more about legacy planning.
Review our resources

[1] “U.S. Retail Investor: Inheritance,” Cerulli Associates (2Q 2019).
[2] “Women Shall Inherit the Power of the Purse,” Blair Duquesnay, fa-mag.com/news/women-inherit-the-power-of-the-purse-45001.html.
[3] 2018 U.S. Trust Insights on Wealth and Worth study.
[4] “Advisor Trust,” conducted by Socratic Technologies Inc. on behalf of the Nationwide Retirement Institute (2019). The survey was conducted online within the United States during August 2019, among 1,807 adults ages 18 and older. 

Related topics & resources

Older couple walking through forest together

Nationwide CareMatters®

This single-life coverage is for clients who are primarily looking for long-term care coverage and want to be able to recover their costs if they never need care.

See product

Nationwide CareMatters is a service mark of Nationwide Mutual Insurance Company.