How To Convince A High Net Worth Client To Set Up An Estate Plan

Convincing anyone to set up an estate plan is a tall task due to the inherent reluctance to engage in death or disability planning that is found in most people. What is surprising, however, is that 1/3 of individuals with net worth of $1 million have never set up an estate plan. However, there are some tips that might convince the high worth client to set up a plan:

• Emphasize the potential savings through tax planning. Few people have a great grasp of the potential benefits of estate planning in regards to taxes especially the benefits that can be had while still living. Making sure the client knows they can save money while still living could be of great incentive.
• Look at the psychological standpoint of a client that is reluctant to take the time to set up an estate plan. Some people are just reluctant and need reassurance from a trusted source in order to take the plunge. 
• Many people feel that setting up a plan is overwhelming and do not want to deal with all the hassle of making decisions and providing information about their current situation and plans for the future. To combat this problem, take it slow with the client and stress that each step can be taken separately and slowly. Unless death or disability is imminent, there will be time to set up a plan without having to rush and make the client feel overwhelmed.

See Kimberly Bernatz, Breaking the Barriers of Estate Planning Fatigue, Wealth Management, September 8, 2015.

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