Estate Planning in the Digital Era

A survey recently reported that over 80% of people who work in estate and financial planning utilize digital trends to support estate planning. Family structures are increasingly complex with currently 34% of respondents reporting that the appointment of beneficiaries was a primary cause of fighting among a family. Market volatility has been identified as the leading threat to estate planning and has risen substantially in danger over the last few years. 

The study also determined the increase in the use of digital content and tools that conform with the growing interest in digital assets. Many people are interested in their financial planning advancing as the utilization of technology and digital integration improves.

Other details in the study state that 52% of people leverage estate planning software, while 48% of individuals use online estate planning platforms. This activity demonstrates that a large part of people who participate in estate planning are utilizing digital resources to efficiently support client needs.

The study was conducted from an analysis of a pool of 142 estate planning professionals.

Family Structures Make Estate Planning More Complex

Family dynamics have become increasingly complex. The designation of beneficiaries has been identified as one of the most common causes of family conduct and has risen in its identification as a threat substantially. To reduce the odds of family fighting, it’s a wise idea to make sure to discuss your estate planning goals with your loved ones and beneficiaries over the last year. Only 15% of individuals who responded stated that their clients directly increased the value of bringing loved ones and beneficiaries into meetings about estate plans. This has led to estate planning professionals initiating inclusion in meetings of families and beneficiaries instead of leaving the task to be addressed by clients.

Communication plays a valuable role in helping to reduce the chances of conflict among clients and beneficiaries. The need to openly address plans and the execution of these plans permits improved preparation and outcome while offering a chance to meet any potential emotional or financial worries. 

Market Changes Become Bigger Estate Planning Obstacles

As people continue to meet financial losses associated with the Covid-19 pandemic, market volatility has emerged as the primary threat to estate planning. In this current environment, people are cognizant that market risks can substantially disrupt existing estate plans. Many individuals think that inflation could result in the devaluation of assets and employment challenges could pose a risk to business and employment obstacles.

Management of documents is also becoming more nuanced for clients and their attorneys. Survey responders stated power of attorney is the most difficult document to manage, while many people also cited keeping wills current as a challenge. 

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