In advisors we trust – legacy planning starts with you
One of the standout findings of the latest Sanlam Legacy Wills Survey was that 78% of respondents would turn to their financial advisors as first port of call for information about wills. This inherent trust provides a strong foundation for conversations about wills, estates, and intergenerational wealth.
Advisors can become the go-to resources for holistic estate planning because clients are increasingly thinking about leaving a legacy, rather than only putting an estate plan in place.
Building generational wealth
Anecdotally, many South Africans say they want to leave generational wealth as an inheritance for their dependents. In our country, a significant proportion of the population wants to make sure that they can transfer from one generation to the next the assets they have worked hard to earn and own. Respondents to the Sanlam Legacy Wills Survey strongly echoed these sentiments:
- 72% want to leave their kids better off than they were
- 71% want to leave a legacy of financial security
- 61% want to secure their dependents’ education
- 51% specifically named generational wealth as a priority
Who will they turn to?
With a view to helping South Africans build and transfer the generational wealth they prize so highly, another striking finding of this survey was that respondents ranked financial advisors as the most trusted professionals.
Financial advisors can fulfil many roles: confidant, translator of financial complexities, guide to big decisions in life, and more. Estate planning fits neatly into this context and is a natural extension of financial planning. Clients are looking for someone to help them map out intergenerational wealth, understand what they could leave behind one day, and ultimately help protect their legacies. This is where financial advisors come in.
Further underlining this, the survey results show that while only 39% of respondents had wills, those who had not yet done so did have a clear idea of who they would turn to once they’re ready to draft their wills:
- 61% would choose their financial advisors
- 54% indicated they would go to their bank
- 37% said would approach a ‘big financial institution’
This represents a fantastic opportunity to discuss the benefits of wills, highlight the unexpected costs of dying and introduce products like the Sanlam Legacy Plan. It is no exaggeration to say that indemnifying the unexpected costs associated with passing away and safeguarding dependents could have positively life-changing implications.
Conversation starters
Some of the questions to ask when initiating conversations about wills, include ‘Do your loved ones know your wishes?’ and ‘Have you thought about your legacy and how you will be remembered?’
These stats from the wills survey could be useful when talking to clients about estate planning:
- When parents have wills, their children are more likely to have wills too. In our survey, 17% of respondents didn’t know whether their parents have wills, showing there is always the need for more conversations around wills.
- 57% of respondents believe getting a will as the right thing to do, leaving 43% who could be convinced of the value of a valid will.
- 39% are waiting to draft a will until they have purchased property and 60% plan on drafting a will only once they own more assets. This once again highlights the need for consumer education because no matter how little someone owns, they should still have a will as every estate must be wrapped up when a person passes away.
Clients don’t need to be wealthy to have a will, they just need to care about what happens when they pass away. Wills are not only for the wealthy – they’re for everyone.
To watch a short video about this research, click here
https://youtube.com/shorts/3X8BgppfRZo
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/
