In “Planning for the Merely Well-to-Do Baby Boomer,” I offered my take on why some boomers may still not have comprehensive estate plans. One component of such a plan is, of course, establishing and funding trusts. I suggested that the reason some aren’t establishing and funding trusts is because they’re not being told, not even by the trust companies, why they should and the risks they’re courting for themselves and their families if they don’t. And here, I’m thinking particularly about all that’s involved and the services needed if they lose the capacity to handle their affairs, let alone pass away.
Spread the Word
Look at the trust companies’ websites. You’ll see a good deal about investment management. But beyond that, you’re likely to see a lot about estate taxes, grantor retained annuity trusts, spousal lifetime asset trusts and multi-generational legacy planning. You’re not likely to see much about the ways and means of using trusts managed by professional trustees to achieve the significant and real-time legal, economic, administrative and risk mitigation benefits they can offer. Wealth/relationship managers at those trust companies have a great story to tell here that should help them land funded business or even investment management business that could evolve into funded business from merely well-to-do boomers. That’s why I recommended that they have a conversation with their marketing people about expanding the commentary to connect more directly with merely well-to-do Boomers about their clear and present needs. That conversation should expand for the mutual benefit of the wealth/relationship managers and centers of influence with whom they’re trying to network. Estate planners and life insurance agents, for example, are in a great position to educate clients about the comprehensive benefits of funding trusts, both generally and with professional trustees. However, they may not have the right talking points at hand.
Achieving Security
In addition to estate planners and life insurance agents, a whole cadre of investment advisors and financial planners are now trying to position themselves to benefit from the so-called “Great Wealth Transfer.” I assume these advisors anticipate that merely well-to-do boomers will be among those transferring wealth to the next generation. But before those Boomers can even think about transferring their wealth, they’ll have to be confident that they’ve secured their futures. See “Alleviating the Anxiety of the Merely Well-to-Do Boomer.” Here again, trust companies and their wealth/relationship managers have much to say about how they can help Boomers achieve that security. Consider this a worthy thematic addition to the conversation between the marketing departments and those managers.