The study found that for the largest percentage of respondents (35%), advisor recommendations have more impact on estate planning decisions than any other factors for the largest percentage of respondents. (See Figure 1.)
The findings make it clear that investors look to advisors for information and help regarding trusts, says Clauson. "I'd say that in general advisors are talking about trusts with clients about 35% of the time. But the advisors who know trusts think that number is low. They're talking about trusts in every conversation. I think the study underscores that if you're assuming that clients are turning to their CPA or someone else, now you know they're counting on you to have this conversation."
The study also shows that advisors (59%) are using living or revocable trusts more than other estate planning tools. (See Figure 2.)
But that should change as the need for trusts tracks the aging of baby boomers, Clauson says. "Right now, clients are starting to care about retirement, but they still want the flexibility of a revocable trust. As they age more, they'll want to lock in the tax benefits that irrevocable trusts provide."
