The 2014 version of the U.S Trust Annual Insights on Wealth and Worth was recently released. The annual survey provides insight on the wealth management challenges confronting high net worth and ultra high net worth individuals in the US.

High Net worth is defined for the purposes of this survey as being $3 Million or more in investable assets. The 2014 survey sheds light particularly on the growing challenges and needs that come with more complex family dynamics including multi-generational and extended family situations. Worries of the Wealthy.

Some highlights that we found particularly interesting and some of the challenges that LegacyTracker can help with….

The Top 5 risks to family wealth

Divorce, Addictions, Untimely death or disability of a primary income earner, medical problems  and disagreements over inheritance or distribution of family assets

“The modern American family is more diverse than it once was, adding to the challenges of wealth management for high-net worth investors and their advisors. Changing family structures and roles among multiple generations of immediate and extended family members affect the way family members interact, communicate  and manage their wealth”

Ranking the most important reasons for having an estate plan

How important are Financial Legacies ?

While 60% of those surveyed thought it was important that they leave a financial legacy, 96% of wealthy parents are concerned that their children will be mature enough to receive an inheritance until at least age 25 and 37% think the ideal age is between 30-34. That might explain why only 38% of wealthy parents have fully disclosed their financial status to adult children over age 25.

Executor choices

Perhaps some troubling challenges on the horizon?

• More than 3/4 of those surveyed have named a family member or friend as executor
• Most often, individuals name their spouse as an executor but…
• Nearly a quarter of those surveyed had not yet chosen an executor or trustee
• 22% have not named a trustee because they have not established a trust

Executor challenges

There were many challenges noted by those that have served as an executor or trustee. The 2nd biggest challenge cited was…having access or knowledge relating to where the records and important information was kept.  We would suggest that this issue adds to the biggest challenge noted being, the time commitment of time require to execute a will. Time is money and time can also add to the grief already being experienced in the case of a loved one who has been named as executor which happens a majority of the time even in high net worth families.

 

Yes. LegacyTracker can help with some of these challenges; important documents & information is critical & so is the sharing of that information as required. Our built in alerts & reminders are all about ensuring that the proper documentation & information is safeguarded.

 

Read the full US Trust Survey US Trust 2014 survey on High Net worth individuals