CLEVELAND, March 6, 2019 /PRNewswire/ -- Today, Key Private
Bank, the wealth management arm of KeyCorp (NYSE: KEY), released
the results of its latest advisor poll, which surveyed nearly 130
of its client-facing advisors about their experiences working with
high-net-worth (HNW) individuals on estate planning. The survey
explored the recommended timing to start, review and revise an
estate plan; the biggest challenges that clients face in doing so;
and recommendations for communicating estate plans with family
members.
The majority (77 percent) of advisors say that the hardest part
of estate planning is navigating interfamily dynamics, and nearly
half (43 percent) believe that the biggest estate planning mistake
is having no plan at all. To add, the biggest misconception among
clients is that "they are not that old and can plan later," say
half of advisors (49 percent).
Not Having an Estate Plan is the Biggest Mistake
Having no plan at all is the biggest estate planning mistake,
cited by four in ten advisors (43 percent), followed by not
updating documents regularly (35 percent). Many also say clients
inaccurately believe that a will can oversee the distribution of
all their assets (35 percent).
Most often, estate planning conversations are triggered by
advisors raising the topic (29 percent) or life-altering events
such as an accident or health crisis (25 percent). However,
advisors say that clients should not wait for these instances, and
that clients should start estate planning earlier than they may
think.
"Some clients may be hesitant to have a conversation about
estate planning with their family members because they fear that
sharing their wishes will cause conflict," said Andrea M Griffiths,
J.D., CWS® national manager Trust Settlement
Administration, Key Private Bank. "In designing an estate plan,
clients must sort through a number of emotional and psychological
issues, ranging from treatment of children—where what's fair is not
always what's equal—to the beneficiaries' perception of their
relationship with the grantor, as well as their behaviors and
potential biases toward other beneficiaries."
Estate Planning Conversations Are Rarely Prompted by Those
Who Need Them
Convincing clients to put an estate plan in place is a
challenge, according to 34 percent of advisors—but it's not as
difficult as convincing clients to communicate wishes openly and
honestly with family members (57 percent). Eight in ten (81
percent) advisors say only "some" or "hardly any" clients are
having open conversations about estate plans and wishes with their
families. As a result, four in ten (39 percent) advisors say half
or fewer than half of estate plans holistically capture their
clients' values in the transference of wealth to the next
generation.
"The sensitivities of talking about estate planning often
presents emotional hurdles to putting a plan in place—especially
when multiple marriages and blended families are involved," said
Karen Arth, head of trust with Key
Private Bank. "To navigate these complexities, we encourage our
clients to take a proactive approach to estate planning by talking
through their wishes and desires early on with family members to
set expectations, delegate responsibilities and avoid
misunderstandings later on."
The poll also revealed that most estate planning conversations
are being prompted by advisors (66 percent)—rather than clients or
their family members—further highlighting a need for more proactive
family financial discussions and the critical role that advisors
play in moderating these conversations.
About Key Private Bank
Key Private Bank is a leading
provider of wealth management solutions and advice for high-net
worth and ultra-high-net worth clients, including wealth advisory,
investment management, trust administration, customized credit,
family office and private banking services. Key's wealth management
platform combines the market insights of local advisors with a
national team of wealth and investment strategists to deliver
proactive and personalized advice and expertise to clients.
Advisors also leverage partnerships with Key's business banking and
capital markets teams to build wealth plans tailored to meet each
client's specific need. Key Private Bank's wealth management
platform is delivered across 15 of the
United States. Key Private Bank has $36.8 billion in AUM and $39.9 billion in AUA at December 31, 2018.
About KeyCorp
KeyCorp's roots trace back 190 years to
Albany, New York. Headquartered in
Cleveland, Ohio, Key is one of the
nation's largest bank-based financial services companies, with
assets of approximately $139.6
billion at December 31, 2018. Key provides deposit,
lending, cash management, and investment services to individuals
and businesses in 15 states under the name KeyBank National
Association through a network of over 1,100 branches and more than
1,500 ATMs. Key also provides a broad range of sophisticated
corporate and investment banking products, such as merger and
acquisition advice, public and private debt and equity,
syndications and derivatives to middle market companies in selected
industries throughout the United
States under the KeyBanc Capital Markets trade name. For
more information, visit https://www.key.com/. KeyBank is Member
FDIC.
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SOURCE KeyCorp