Estate Planning Future Looks Bright
While the economic downturn over the last two years may have softened growth in some estate planning firms, the industry has now turned the corner and expansion is expected over the next five years, according to results from the Fourth Annual Industry Trends Survey. The web-based survey of estate planning attorneys is conducted in the fall of each year by WealthCounsel, a nationwide organization of estate planning attorneys, and Trusts & Estates magazine. Copies of the current survey report may be downloaded at http://www.wealthcounsel.com/.
Of the 831 estate planning attorneys who participated in the survey between September 8 and October 25, 2010, 46 percent experienced an increase in business during 2010, up from 40 percent the previous year. Nearly half of the respondents (49 percent) expect business to increase by 20 percent or more over the next five years, up six percentage points from the previous survey.
Seventy-two percent of respondents cited the aging baby boomer population as the primary reason for the anticipated growth, followed by 68 percent who stated they plan to strengthen their referral networks comprised of other attorneys, CPAs, financial professionals, and financial sector entities such as trust companies, banks, insurance brokers and investment managers.
We also learned from this year’s survey that while business at some firms remained the same (26 percent) or declined (23 percent), wealth transfer opportunities characterized by low asset valuations and interest rates partially contributed to the growth experienced by some firms. Still other firms were able to broaden their business models to derive revenue from areas such as bankruptcy, real estate, trust administration and Medicaid planning.