Breaking down the barriers to will drafting
One of the biggest challenges in financial planning is getting people to draft their wills. Despite all the awareness we raise, and the trust clients say they have in their financial advisors, many still say they “will not” (or, at least, not yet!) when it comes to drafting their last will and testament. So, what would it take to change that?
The barriers
Respondents to the latest Sanlam Legacy Wills Survey said their biggest barriers to having wills are:
- 60% would consider drafting their wills when they owned more assets
- 18% simply hadn’t gotten around to it yet
- 16% think they don’t know enough about wills
- 13% believe they can’t afford to draft a will
These responses demonstrate a lack of knowledge and information, highlighting a great opportunity for financial advisors to educate clients and make will-drafting more accessible.
Reframing will-drafting
Financial advisors are ideally placed to reframe clients’ perceptions around wills, for example by reminding them about the reasons to have a will, including:
- Protecting their children.
- Preventing family conflict.
- Creating a roadmap for the legacy they want to leave behind.
Instead of asking “What will happen to your loved ones when you die?”, rather ask, “How would you want things to be handled if something happened to you?”
Simplifying the process
Many clients believe the process of will-drafting to be time consuming and costly, not realising that neither is true! Financial advisors can show them that:
- It can often be completed in under an hour, at no cost.
- It forms part of their existing financial planning relationship.
- They are supported and guided at every step.
Demystifying the process is half the battle!
Amrith Bishoon, Executive Manager of Sanlam Legacy says, “Wills remain the domain of people perceived as ‘privileged’. We need to shift this perception to break the perpetuating cycles which see families battling financially without the guidance and continuity a will can provide. Wills are for anyone and everyone. They’re the best way to make sure your last wishes are carried out, and to create a roadmap for what happens after you pass away. Remember that your loved ones will not only inherit your assets, but also your outstanding debts and taxes, if any. So, it’s critical to consider how you want your estate to be managed, and ensure there’s a plan for debt and every other obligation. A financial advisor can help mediate these conversations and create a will that reflects your unique circumstances.”
What will it take?
Responses to the Sanlam Legacy Wills Survey revealed that life events play a big role in clients’ thinking about wills:
- 50% said they’d need to own more assets before drafting a will
- 44% said they want to secure their child’s education through a trust
- 39% said they’d draft a will once they’d purchased property
- 19% said they’d draft a will once they’d gotten married
These responses tell us that people link wills with major life events. This presents an opportunity for financial advisors to nudge clients to take action by drafting (or updating) their wills when big life events and milestone occur – having or adopting a child, purchasing a home, getting married, etc.
Final thought
The barriers are real, but so are the opportunities. When clients say “they will not”, a financial advisor’s role is to help them say “I will”, and support them in turning intent to action because everyone deserves the peace of mind that a will can provide.
Wills are one of the greatest means to protect a family and honour a loved one’s wishes. Whether someone owns a lot or a little, drafting a will creates a roadmap for a family.
“We want to empower you to help your clients build financial confidence and preserve their family’s financial security. Together, we can build stronger, more resilient communities and a prosperous future for all,” says Phomolo Dube, Chief Executive of Strategic Initiatives, Sanlam Life & Savings.
Partner with your Sanlam Legacy Representative
Sanlam Legacy Representatives are equipped to help you integrate estate planning into your client conversations. Use the tools, support and expertise available to help clients live with confidence by:
- Drafting their wills;
- Understanding the costs associated with dying; and
- Learning more about the solution that the Sanlam Legacy Plan offers through indemnification.
To watch a short video about this research, click here
https://youtube.com/shorts/uokx-KjRHg0
For the full research report and a wide range of insights, click here https://www.sanlamonline.co.za/financialplanning/wills-trusts-and-estates/sanlam-legacy-plan-survey/
