Eighth Annual Industry Trends SurveyKey Findings

A LOOK INSIDE THE ESTATE PLANNING INDUSTRY

Content Overview

Overview

RESPONDENT PROFILE

Location

Professional status

PRACTICE PROFILE

New services offered

Revenue

CLIENT PROFILE

Client profile

Client concerns

BUSINESS PRACTICES AND TOOLS

New client generation

Time spent on new client generation

Business tools

Continuing education

Topics of interest

Summary

2

33

46

55

667778

It has been a big year for trusts and estates attorneys and the 8th Annual Industry Trends Survey illustrates areas of growth and challenges the industry faces. The survey addresses changes from legislation, client demographics, education requirements and desires for estate planners and their staff, business goals, and communication methods.

The field (and opportunity) is growing—estate planning services have increasingly become a major source of business revenue for respondents. Last year, 48% indicated estate planning services were a majority of their business; this year, the number has exploded to 72% of respondents who indicate estate planning generates more than half of their revenue. 70% of respondents base their pricing on flat fees for the service provided and 62% of respondents saw their practices grow from 2013 to 2014.

The post-ATRA environment, with tax exemption limits and added portability, has many attorneys adapting their practices. The majority of attorneys expanded their offerings or added services: specifically in the areas of trust administration, elder law, and non-tax trust planning.

On average, responding attorneys spend one to four hours per week developing their client base.

Existing client referrals and professional network referrals are the primary methods for generating client business; seminars, workshops for prospective clients, and marketing/advertising are used to a much smaller extent.

2

Respondent Profile

LOCATIONOur respondents are spread out across the United States.

PACIFIC20%

MOUNTAIN17%

MIDWEST13%

GREAT LAKES

15%

SOUTHATLANTIC

14%

MID-ATLANTIC9%

NEWENGLAND

5%

SOUTH7%

Professional StatusFor the purposes of this survey, respondents must indicate that they are an attorney, currently practicing trusts and estates law. Nearly half of respondents have been practicing trusts and estates law for more than ten years, while 22% have been practicing T&E law for less than 2 years.

20+ years 27%

22%

15%

14%

22%

11 to 20 years

6 to 10 years

3 to 5 years

Less than 2 years

100%PRACTICING ATTORNEY

3%CPA/ACCOUNTANT

2%FINANCIAL PLANNER

2%INSURANCEPROFESSIONAL

1%OTHER

How long have you been practicing trusts and estates law?

3

Practice Profile

TRUSTS AND ESTATES

84%GENERAL PRACTICE/PROBATE LAW45%

35%

ASSET PROTECTION

BUSINESS SUCCESSION/EXIT PLANNING

BUSINESS LAW

ELDER LAW

51% - 75%

26% - 50%

Less than 25%

More than 75%

TAXATION

REAL ESTATE LAW

CHARITABLE GIVING

FAMILY LAW

BANKRUPTCY LAW

32%

23%

22%

19%

7%

3%

39%

42%

97%

37%

35%

17%11%

Nearly all respondents indicate their practice focuses on trusts and estates law. A majority also have a focus in other legal areas, but indicate trusts and estates law generates the majority of their revenue.

Practice Area That Best Describes Practice Focus.

New Services Offered

38%27% of respondents indicate they serve as a trustee, while 38% serve as a trust protector/advisor.}

Approximately what percentage of your client revenue is generated from services related to trusts and estates?

What services do you newly offer, or what parts of your practice have expanded as a result of the raising of the estate tax exemption limit and adding portability (post-ATRA)?

TRUST ADMINISTRATION

84%ELDER LAW22%

17%

NON-TAX TRUST PLANNING (PROBATE AVOIDANCE)

ASSET PROTECTION

BUSINESS PLANNING

INCOME TAX PLANNING

RETIREMENT PLANNING

OTHER

BECOMING LICENSED TO SELL INSURANCE AND/OR SECURITIES

WE HAVE NOT CHANGED THE SERVICES WE OFFER POST-ATRA

14%

12%

2%

6%

43%

20%

21%

25%

The majority of respondents have expanded their

offerings or have added services as a result of

the raising of the tax exemption limit and adding

portability. Trust administration, elder law and

non-tax trust planning are most likely to have

experienced an increase.

Avoiding chaos/discord among family/beneficiaries

Protect children from mismanaging their inheritance

Seeks asset protection, either for self or beneficiaries

Minimize estate taxes

Reduce likelihood of estate litigation

Concerned with financing healthcare or long term care

Business succession and exit planning

Provide for a family member with special needs

Provide for a spouse who is incapacitated or terminally ill

Business formation and entity planning

Transferring assets to international beneficiaries

Ensure philanthropic/charitable giving goals are met

Concerned about outliving their retirement

Other4

Client ProfileRespondents serve clients who represent a variety of net worth levels and a variety of ages. A majority of clients, 56%, have a net worth of $1 million or more—this number is up from last year’s 52%, a clear indicator of growing net worth. Respondents indicate that 52% of their clients are between the ages of 50 and 69 (up 1% from last year).

A staggering 73% of clients are married with children, either from the same marriage or as a blended family, up 13% from last year.

The top three concerns or reasons that cause clients to seek estate planning.

What percentage of your clients fall into each of the following categories?

What percentage of your clients fall into each of the following age categories?

40 - 49Under 40 50 - 59 60 - 69 70 - 79 80+

What is the net worth of the clients that you serve?

$1M - $1.9M

$500K - $999K

$2M - $4.9M

$5M - $9.9M

$10M+

Less than $500K

19%22%

22%

22%

8%

7%

9% 15% 23% 29% 17% 7%

The top three reasons why clients use estate planners hasn’t changed: clients are likely to seek estate planning in an effort to avoid probate (67%), avoid chaos or discord among survivors (65%) or to protect children from mismanaging their inheritance (38%).

67%

65%

38%

25%

22%

16%

14%

13%

10%

10%

5%

4%

1%

1%

1%

Avoid probate

Avoiding chaos/discord among family/beneficiaries

Protect children from mismanaging their inheritance

Seeks asset protection, either for self or beneficiaries

Minimize estate taxes

Reduce likelihood of estate litigation

Concerned with financing healthcare or long term care

Business succession and exit planning

Provide for a family member with special needs

Provide for a spouse who is incapacitated or terminally ill

Business formation and entity planning

Transferring assets to international beneficiaries

Ensure philanthropic/charitable giving goals are met

Concerned about outliving their retirement

Other

9%Married/No Children

12%Single/Children

25%Married/Blended Families

48%Married/Children

6%Single/No Children

5

Revenue

New Client Generation

Respondents most likely price their services as flat fees based on the service provided. 62% of respondents experienced an increase in revenue fxrom 2013 to 2014.

There is a growing preference among estate planning attorneys for referrals from existing clients. Up 3% from last year, 86% of attorneys ranked existing clients as one of their top choices. Other popular methods include referrals from their professional network (79%) and hosting seminars/workshops for current and potential clients (13%).

Respondents are spending more time on new client generation than ever. Attorneys are most likely to spend up to 4 hours per week on acquiring new clients and growing their practice (45%), compared to 52% of the respondents from last year who spent one to two hours per week on the activity.

70% | Flat fees bases on service provided

23% |

7% |

Combination of flat plus hourly

Hourly fees

How do you primarily price your trusts and estates planning services?

Of the following categories please rank the primary methods you use for generating client business.

Which response best describes the growth of your practice when comparing 2014 revenue vs. 2013?

Grew more than 25%

Grew 16% - 25%

Grew 5% - 15%

About the same

It declined

17%

16%

29%

28%

10%

FIRST CHOICE SECOND CHOICE THIRD CHOICE

Referrals from existing clients

Referrals from professional network

Hosting seminars

Marketing/Advertising

Lists

Social

Other

46%

40%

30%8%5%

40%

39%

11%

13%

24%

14% Total

10% Total

10% Total

6%5%

6

Respondents prefer both online and live education events (78% and 71%, respectively) over online news sources and trade publications (24%, 19%).

Business Tools

Continuing Education

Respondents use a variety of software and services in their business. Most prefer to use a document assembly software from a legal services company or association over a self-created form. Calendaring and email systems and accounting systems are used by a majority of respondents.

Of the following categories please rank the primary methods you use for generating client business.

What is your preferred method of document drafting?

Preferred sources for staying current on legal education to help you stay current?

Topics you want to learn more about in the coming twelve months?

What is most important to you for your continuing education? 

What tools are you using to manage your practice more efficiency?

74%Document assembly software from a legal services company or professional association 74%}

22%

4%Forms you create yourself

Acquired fromanother source

}}

Calendar andEmail systems

Accounting Systems

Practice management systems

Software based system

Email marketingsystems

CRM systems

94%

64%

43%

32%

20%

14%

Virtual education

Compelling and relevant topic and/or speaker, regardless live or recorded

In-person CLE event with the opportunity to network with peers

Recording I can watch/listen to at my convenience

Cost/affordability

Participating in a live webinarthat fits in my schedule

Other

Live educationevents in person

Online news sources, blogs

Trade publications

Other

78% 47%

37%

29%

24%

16%

3%

41%

30%

27%

15%

19%

52%

71%

44%

24%

38%

19%

36%

1%

21%

1%

Trust Administration

Business succession

Legal marketing

Special needs planning

Probate

Other

Asset protection

Elder law

Retirement planning

Fiduciary income tax planning

Individual incometax planning

7

SummaryThe outlook for the trusts and estates industry is promising. Estate planning

attorneys devoted more time to attracting new business over the last year and

it paid off: 62% of respondents indicated practice growth of more than 5%

this past year and 33% grew their practices by more than 16%. And not only

are practices growing, they’re attracting wealthier clients: 56% of clients have

more than $1 million.

With more than half of respondents indicating expanded practice offerings

and a convincing majority experiencing growth in their practice revenue, there

are solid reasons for continued optimism in the industry into the coming year.

WealthCounsel is a membership-based organization that provides estate and

business planning attorneys with legal document drafting software, educational

programs and CLE, and nationwide networking opportunities in a community of over

4,000 professionals. Our goal is to help members grow their practices, stay current

and confident, and connect with their peers.

Visit WealthCounsel.com to learn more about our best-in-class drafting solutions and

explore the industry insights, CLE, and thought leadership available to WealthCounsel

members in our new online Resource Center at wealthcounsel.com/resource-center.

Give your practice every advantage. If you’d like more info on how WealthCounsel

can help you achieve even greater success, contact us at (888) 659-4069 #819 or

information@wealthcounsel.com.

This work product is the property of WealthCounsel, LLC. Reproduction, distribution, republication, and/or retransmission of the content is prohibited unless the prior written permission of WealthCounsel, LLC has been obtained.