CHERRY HILL, N.J. and
NEW YORK, May 20, 2021 /PRNewswire/ -- TD Wealth today
released results from its annual survey of estate planning
professionals revealing that 89 percent of respondents cited that
their female clients were negatively impacted in the past year by
job losses, leaving the workforce or decreased salary, due to the
"...women overall have been disproportionately impacted through
what we're seeing as a 'she-cession'..."
As a result, 87 percent of respondents that included certified
estate planners, estate planning attorneys and trust officers, made
changes to their female clients' estate plans to reflect their new
financial situation. Such changes included guardian and beneficiary
designations (38%), powers of attorney (38%), current will (35%)
and post-mortem letters (17%).
"It's no surprise that women's estate plans were dramatically
impacted by the pandemic, as women overall have been
disproportionately impacted through what we're seeing as a
'she-cession', particularly regarding their careers," says
Kalimah White, Vice President and
Wealth Strategist at TD Wealth. "Women are also more likely to live
longer than men, thus driving home the importance of having
up-to-date estate plans, while making plans that consider not only
their longevity, but their family's future."
Family Conflict No Longer Greatest Threat to Estate
As individuals, families and caregivers make long-term planning
decisions to account for living longer and extensive healthcare
options, the increase in healthcare costs and prolonged life
expectancy moved to the forefront of concerns in estate planning.
Nearly a quarter (22%) of respondents named this as the biggest
threat to estate planning in 2021, more than tripling from 2019
(7%). Additional threats also top-of-mind for planners included
political conflict (21%, up nearly 11% from 2020) and market
volatility (22%, up nearly 13% from 2020). Family conflict, the
leading threat for estate planning according to the same survey
over the past three years, fell by more than half in 2020 – from 25
percent in 2020 to 10 percent in 2021.
In previous years, not communicating estate plans with family
members was the most common cause of family conflict (43% in 2020).
In 2021, this dropped by nearly half to 24 percent, as dealing with
blended families became the most common cause of family conflict
(34%). Other common causes of family conflict include the
designation of beneficiaries in retirement accounts (17%), a
client's resistance to creating an estate plan (17%) and naming the
guardian of a minor in a will (8%).
"Due to a variety of reasons, priorities shifted, divorce rates
skyrocketed, and tough family decisions had to be faced, rather
than avoided this year. Like many other trends, the pandemic
accelerated the need for a long-term estate and financial plan in
the event of uncertainty," says White. "The pandemic added another
layer of complexity to estate planning and clients saw firsthand
the immediacy and importance of planning for the unpredictable and
reviewing estate plans on an ongoing basis."
Tax Reform Under a New Administration Is Top of Mind for
This new year has seen an influx of legislation with transition
to a new administration. As estate planners reconsider how to
alleviate the implications of future tax policies for clients, a
quarter (25%) of respondents suggest planning to minimize future
capital gains tax consequences, as well as charitable giving
planning to reduce the size of estate and lower income tax
liabilities (23%) as priorities.
"Under a new administration, estate planners are concerned with
how new tax policies will impact estate and financial planning,
which means income tax saving strategies will be increasingly
important and a persistent trend across the industry," adds White.
"And while everyone's situation is unique, it is always best to
consult with financial professionals to determine which available
options could alleviate stress and uncertainty when planning for
one's financial future."
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.
TD Wealth commissioned Maru/Matchbox to conduct a survey
targeting certified estate planners, estate planning attorneys,
trust officers, charitable giving professionals, insurance
advisors, elder law specialists, wealth management professionals
and non-profit advisors with objective of finding the latest trends
impacting estate planning professionals. A total of 142 responses
were collected. The survey was fielded in April 2021 and all samples are sourced through
the Maru/Blue proprietary panel and partners.
About TD Bank Group
The Toronto-Dominion Bank and its subsidiaries are collectively
known as TD Bank Group ("TD" or the "Bank"). TD is the fifth
largest bank in North America by
assets and serves over 26 million customers in three key businesses
operating in a number of locations in financial centres around the
globe: Canadian Retail, including TD Canada Trust, TD Auto Finance
Canada, TD Wealth (Canada), TD
Direct Investing, and TD Insurance; U.S. Retail, including TD Bank,
America's Most Convenient Bank®, TD Auto Finance U.S., TD Wealth
(U.S.), and an investment in The Charles Schwab Corporation; and
Wholesale Banking, including TD Securities. TD also ranks among the
world's leading online financial services firms, with more than 14
million active online and mobile customers. TD had CDN$1.7 trillion in assets on January 31, 2021. The Toronto-Dominion Bank
trades under the symbol "TD" on the Toronto and New York Stock Exchanges.
Maru is a world leading CX and Insights Software & Advisory
Services company. Maru was founded to disrupt the data and insight
delivery industry with a combination of Software & Advisory
Services delivering data in real-time via a unique service model.
Maru helps its clients make informed decisions in near real-time by
combining proprietorial software, deep industry experience and
access to the best minds in research. Maru's flexible service model
means our clients can choose to self-serve our Software directly to
create, launch and analyze projects; or choose to utilize our
Software with knowledgeable support from insights experts. Maru
successfully delivers major national and international CX and CEM
programs for Enterprise organizations.
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SOURCE TD Wealth