CHERRY HILL, N.J. and
NEW YORK, March 13, 2019 /PRNewswire/ -- For the second
consecutive year, family conflict was identified as the leading
threat to estate planning. According to a recent survey conducted
by TD Wealth at the 53rd Annual Heckerling Institute on
Estate Planning, nearly half (46 percent) of respondents
identified family conflict as the biggest threat to estate planning
in 2019, followed by market volatility (24 percent) and tax reform
(14 percent).
The survey also explored the various causes of family conflict
when engaging in estate planning, citing the designation of
beneficiaries (30 percent) as the most common cause of
conflict. Other leading factors included not communicating
the plan with family members (25 percent) and working with blended
families (21 percent).
"Family dynamics have always played a critical role in estate
planning. As we start to see more blended families, we expect these
conversations to become even more prevalent and challenging,"
said Ray Radigan, Head of Private
Trust at TD Wealth. "Estate planning comes with the responsibility
of motivating families to communicate through difficult times,
which requires regular dialogue and complete transparency. To
minimize risk, we encourage families to invite everyone to the
table to participate in open and honest conversation about their
shared goals and objectives."
Keeping an Eye on the Markets
Market volatility was top of mind for respondents in 2019, with
nearly a quarter of respondents identifying volatile markets as the
biggest threat to estate planning this year, up from 12 percent in
2018.
"It's not surprising that more planning professionals are
keeping a close eye on volatility this year because many clients
view lifetime gifting as an important component to their estate
plan. These gifts, however, should only be made if enough assets
are retained to provide support during retirement years. While
market fluctuations are certainly worth watching and can cause
concern for potential gift givers, we encourage our clients to keep
a long-term view when investing and remember that short-term
market movements are no match for a robust estate plan and a
well-balanced portfolio," continued Radigan.
Giving the Gift of Trusts
The Tax Cuts and Jobs Act continues to have large-scale impact
on estate planning. Following the increase in the federal gift and
estate tax exemption, estate planners are introducing various
strategies to allow clients to take advantage of the exemption.
About one third of respondents (31 percent) propose clients
consider creating trusts to protect assets, while 26 percent
suggest clients plan to minimize future capital gains tax
consequences and 21 percent agree to gift now while the exemption
is high.
"Estate planners are now emphasizing the importance of creating
trusts for the benefit of their loved ones so that assets can be
protected from future claims," added Radigan. "For example, rather
than provide a child with an outright gift or bequest, many parents
are creating trusts as a means of protecting assets from future
divorce claims. Additionally, these trusts can be used
to ultimately protect loved ones from themselves or other
loved ones."
Additionally, 40 percent of planners believe clients will
continue to give the same amount to charities as they did in 2018,
and 21 percent expect clients to donate more.
Survey Methodology
The total sample includes 105 survey respondents who attended
the 53rd Annual Heckerling Institute on Estate Planning,
including attorneys, trust officers, accountants, charitable giving
professionals, insurance advisors, elder law specialists, wealth
management professionals, educators and non-profit advisors. The
survey was fielded January 16-17,
2019.
About TD Wealth
Through TD Bank N.A.,TD Wealth's Private Client Group and its
affiliates work with mass affluent and high net worth individuals
and institutions to help build, preserve and transition wealth. TD
Wealth is committed to helping personal investors, institutional
and non-profit organizations gather and potentially grow their
assets by building long-lasting relationships, and is affiliated
with one of the 10 largest financial institutions in the U.S., TD
Bank, America's Most Convenient Bank®. From private
banking, securities, investment advisory services, private trust,
and estate planning, to institutional trust, including retirement
planning, captive insurance and trustee services, TD Wealth creates
and delivers customized and integrated wealth management solutions.
Banking, investment and trust services are available through TD
Bank. Securities and investment advisory products are
available through TD Private Client Wealth LLC, member FINRA/SIPC
(TDPCW).TD Wealth is a service mark of The Toronto-Dominion Bank.
For more information,
visit http://www.tdbank.com/investments.
TD Wealth is not a tax or legal advisor. You must consult with
your own tax and legal advisors for specific advice pertaining to
your estate planning needs.
About TD Bank, America's Most Convenient
Bank®
TD Bank, America's Most Convenient Bank, is one of the 10
largest banks in the U.S., providing more than 9 million customers
with a full range of retail, small business and commercial banking
products and services at more than 1,200 convenient locations
throughout the Northeast, Mid-Atlantic, Metro D.C., the Carolinas
and Florida. In addition, TD Bank
and its subsidiaries offer customized private banking and wealth
management services through TD Wealth®, and vehicle
financing and dealer commercial services through TD Auto Finance.
TD Bank is headquartered in Cherry Hill,
N.J. To learn more, visit www.td.com/us. Find TD Bank
on Facebook at www.facebook.com/TDBank and on Twitter at
www.twitter.com/TDBank_US.
TD Bank, America's Most Convenient Bank, is a member of TD Bank
Group and a subsidiary of The Toronto-Dominion Bank of Toronto, Canada, a top 10 financial services
company in North America. The
Toronto-Dominion Bank trades on the New
York and Toronto stock
exchanges under the ticker symbol "TD". To learn more, visit
www.td.com/us.
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SOURCE TD Bank