Most Ultra-High-Net-Worth Individuals Lack Estate Plans

According to a Spectrem Group study of 419 ultra-high-net-worth individuals (those with $5 million to $25 million), many of those surveyed seek financial planning advice, but less than half had a complete financial plan. The study also found that less than one third of those surveyed had an estate plan.

Of those surveyed, only 31% used their primary financial advisor to create an estate plan, and only 48% used their advisor to create a complete financial plan. Sixty-six percent of respondents used their advisors to diversify their assets, 61% used their planners to create an investment plan, and 66% used their advisors to select individual stocks and bonds.

Respondents stated that honesty and trustworthiness topped the list of desired characteristics for financial advisors. These qualities were considered most important by 99% of those surveyed, making them more important than an advisor’s good investment track record.

See UHNW Lack Financial, Estate Plans, Survey Says, PWinsider, Dec. 1, 2011.

Special thanks to Jim Hillhouse (WealthCounsel) for bringing this article to my attention.