Social Competency in Estate Planning
Estate planning is not just for the white and wealthy. It is an important step regardless of age, health, wealth, or race. Although more young people are acquiring wealth, the demand for estate planning remains low among this group, and it is even lower among people of color, according to a nationally representative survey of 2,224 U.S. adults (Althea Chang-Cook, Why People of Color Are Less Likely to Have a Will, Consumer Reps. (Aug. 10, 2022)). The survey showed that 61 percent of whites and 67 percent of English-speaking Asians do not have a will, while a larger percentage of Black people (77 percent) and Hispanic people (82 percent) do not have one.
Those without a will cited several reasons, including the assumption that they don’t have enough assets (25 percent overall), they are not sure how to create one (20 percent), they want their next of kin to automatically receive everything (9 percent), they think they’re too young (23 percent), or they just do not want to think about death (12 percent).
There has been a 50 percent increase in 18- to 34-year-olds with estate planning documents since the beginning of the COVID-19 pandemic, but planning continues to be most common among white Americans and immigrants with higher levels of education.
All members of society would benefit from thoughtful asset protection planning
This can be done with an experienced, socially competent estate attorney with whom they can build rapport. For example, immigration status is an added factor that can discourage people from estate planning. However, immigration status does not affect people’s need to plan for the distribution of their assets in a way that reflects their personal preferences, status, and values. A comprehensive estate plan for an immigrant client should consider the immigration status of both the testator and the beneficiaries, along with the location of any financial accounts and property that is to be passed through the estate.
The rise of immigration in the United States presents a unique opportunity for estate attorneys to expand their client portfolio, and it is also an opportunity for different practice groups to work together to ensure assets are distributed and handled so that immigration affairs are appropriately managed without hassle. Estate attorneys should team up with immigration attorneys to effectively transfer the wealth of their immigrant clients. Similarly, estate attorneys working with underserved citizens in the United States should lean on the competencies of those who have unique insight on how to expand the benefits of asset protection to those who traditionally have not been afforded such protections.
Initial Intake Process
The initial intake process is a vital component in creating a comprehensive plan and provides the estate attorney an opportunity to ask good questions and become culturally competent. Cultural competency means being aware of cultural beliefs and values and how these may be different among different cultures; it involves being able to learn about and honor the different cultures of those you work with. Estate attorneys are not held to the standard of being perfect, but they are expected to practice law and remain open to learning constantly. Our role as lawyers is to enhance the legal system and the nobility of the profession. Some of the solutions to our nation’s problems are embedded in how we practice the law. The efficient transfer of wealth can impact economic trends, changing stock markets. Using interdisciplinary approaches in our practice can move law forward so we can create modern-day solutions.
Estate Attorneys
Estate attorneys must do the very best they can to stay informed about the perception of estate planning as the exclusive domain of straight, white, wealthy male patriarchs. They should have a basic awareness that this nation traditionally passed inheritance through the male line—and passed on human beings as property for at least 12 generations. In turn, there is a stigma or an intimidation factor that may be involved with estate planning, which further limits access to high-quality representation. Most often, the alternative to quality estate planning services will be direct-to-consumer digital tools on the market; such robot legal services lead to hefty costs because they fail to generate legal documents to create a living trust and do not avoid probate. This is one of the reasons why culturally competent attorneys are needed to offer an affordable path to creating estate planning documents.
Because of their history, certain communities have a general distrust of the court system and therefore prefer an estate plan that avoids the probate court entirely. Passing on an inheritance or leaving assets for one’s children has not historically been a luxury afforded to communities that have had to overcome systemic barriers to wealth accumulation. Therefore, dealing with the probate court is not the ideal estate plan for communities that perceive the court system as biased. Transferring wealth outside of probate is preferable for these communities, and estate attorneys must be able to flag this potential issue to customize an estate plan accordingly.
Cultural Compentency
It’s importance is because, without it, the opportunity to build relationships is impossible. Cultural competency challenges the large and persistent wealth gap with customized asset protection plans focusing on the efficient transfer of wealth. Estate attorneys should consider how the rise in immigration and increased wealth in certain communities offer a big opportunity not only to grow a client portfolio but also to support wealth creation and equitable outcomes. Marketing estate planning services that target certain clients conveys to them that their assets are important and need protection, and it also helps perpetuate a community that promotes inclusion in wealth transfer. This will require market strategy changes that target nontraditional clients. Estate attorneys should work to build and re-earn the public’s trust by marketing estate planning as a commodity available not just to one demographic—but to everyone.
**This information should be considered GENERAL INFORMATION ONLY and is not a substitute for the advice of an attorney **
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