High Net Worth

Rise In Net Worth Of US Households Reinforces Importance Of HNW Estate Planning

Eliane Chavagnon Editor - Family Wealth Report December 8, 2014

Rise In Net Worth Of US Households Reinforces Importance Of HNW Estate Planning

The net worth of US households rose by 14 per cent in 2013 to $80.7 trillion – the highest ever recorded – meaning the need for estate planning has “never been greater,” says Steven Wolt, A New York-based insurance representative and estate planner.

The net worth of US households rose by 14 per cent in 2013 to $80.7 trillion (source: Federal Reserve) – the highest ever recorded – meaning the need for estate planning has “never been greater,” says Steven Wolt, a New York-based insurance representative and estate planner.

According to Wolt, many high net worth individuals are using life insurance as a tool in the estate planning process to help create liquidity so that assets can be passed from one generation to the next.

“With all the wealth being created, there has never been a more appropriate time to look at estate planning than now,” he said. “Those who have seen their net worths spike from recent economic growth should understand the need for estate planning in the event of unforeseen circumstances.”

According to a 2012 study by Rothstein Kass – which was recently acquired by KPMG - although three-quarters of estate plans relating to high net worth clients are at least three years old, an overwhelming 95 per cent of these clients have experienced “significant changes” since the plans were drawn up - see more here.

The insights may fuel debate on how effective wealth advisors are in ensuring their clients keep their estate plans up to date, particularly at a time when tax and regulatory changes are happening with increasing frequency.

Wolt has worked with owners of privately-held businesses, executives of publicly-traded companies and affluent families on their estate planning, life and disability insurance needs for around 18 years. 

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