Seven in ten advisers cite interfamily dynamics as the most difficult part of estate planning for HNWIs, according to a report by Key Private Bank.
The study surveyed around 130 client-facing advisers working with HNWIs.
Of those polled, 43% believe that having no plan is the biggest estate planning mistake.
The study revealed 66% of advisers initiating estate-planning conversations on their own.
Moreover, 25% of advisers said that such topics were raised only after instances such as accident or health issues.
According to advisers, planning should not be dependent on such instances.
At the same time, 35% of advisers warned clients that a will does not manage their asset distribution.
Thirty percent of advisers cited convincing clients to have an estate plan as a challenge.
For 57% of advisers, convincing clients to communicate wishes openly to their family members is an even bigger impediment.
Eighty one of advisers said that only “some” or “hardly any” clients are having open estate planning talks with their families.
Beside, 39% of advisers opined that half or fewer than half of estate plans holistically capture clients’ values in wealth transfer to the next generation.
Key Private Bank head of trust Karen Arth said: “The sensitivities of talking about estate planning often presents emotional hurdles to putting a plan in place—especially when multiple marriages and blended families are involved.
“To navigate these complexities, we encourage our clients to take a proactive approach to estate planning by talking through their wishes and desires early on with family members to set expectations, delegate responsibilities and avoid misunderstandings later on.”