Everyone is talking about the CPA shortage, but we should be just as concerned about the estate planner shortage. With record numbers of young people (and new business owners) retiring, an estimated $30 trillion in wealth will be transferred between generations. But that's not all. As I wrote last month, The gift and property exemption clock is ticking for 2 million families as the generous exemption limits in the Tax Cuts and Jobs Act of 2017 will be gone at the end of 2025. That means dozens, if not hundreds, of your clients could suddenly find their properties in Uncle Sam's main point.

Meanwhile, many original dynasty trusts and generational trusts created a century ago are coming to an end. These trusts, designed to protect a family's assets for as long as was legally possible at the time they were created, are poised to distribute billions of dollars to heirs. And perhaps there was no plan to prepare the heirs for their windfall.

You'd think estate planners would be licking their chops with all the work that could come their way. But there simply aren't enough to handle the deluge of cases. Boomers are starting to age out of the legal profession, just like in most other industries. But no one is stepping in to take their place. Furthermore, there has been no transfer of knowledge in specific areas such as estate planning. Industry consolidation has further reduced the number of estate planners available as seemingly redundant positions following firm mergers have been eliminated. Meanwhile, law school admissions continue to decline, and the decline in estate planning activity over the past decade has further reduced the interest of young attorneys in estate planning careers.

In many ways, it's a perfect storm of factors at play. Massive wealth is being transferred and there aren't nearly enough planners to help families manage it. This is where it comes in.

The opportunity of a lifetime

Sure, a lot of essential accounting work is being outsourced to countries like the Philippines and India, but you can't throw away legal work so quickly. Whether you are a wealth advisor or an experienced financial planner, advanced planning is a lifetime opportunity. Again, we have massive wealth transfer, with incomes leaving retirements, businesses selling, trusts ending, exemption limits contracting, and no one to seize the opportunity.

Sure, you can stay in your lane, but money management has become more and more of a commodity business. I know what you're thinking. “There is a lot of learning curve involved with estate planning. And even if I spent time learning it, people can go online to do basic wills and estate planning documents.”

Of course, potential estate planning clients can go online and try to save money on attorney fees. However, they still need to be proactive in deciding to do advanced planning. They still need to figure out how to complete all the steps and execute the planning. If they set up a trust, they need to figure out how to put all the right assets into it. Then, they must file a gift tax return. Take it from me; it just won't happen independently.

You don't wait until you've had a heart attack to go to the doctor. The same goes for advanced planning. Ultimately, it depends on how complex a client's estate is, their assets and whether they were previously married. But so many factors go into advanced planning; it really shouldn't be a discussion of cost; it is an investment in the future of a family. And you don't want to be a do-it-yourselfer here.

Fewer Americans have wills and estate plans

Caring.com 2024 Wills and Estate Planning Study reports for the first time since 2020, the number of Americans with an estate plan has fallen. Today, less than a third of Americans (32%) have an estate plan, down from 38% a year ago. And why don't they have wills or estate plans? According to Caring.com, the top reasons were procrastination (43%) and believing they didn't have enough assets (40%). The misconception that they did not have enough assets has increased significantly from 33% in 2022 to 35% in 2023. This is an education problem you can help solve.

In my experience, people don't want to talk about death, much less think about it. Additionally, they don't know who to talk to about estate planning. They don't know who to trust. They don't understand how it works, so they don't want to pay for estate planning.

Again, that's where it comes in.

And while you're at it, there's another great opportunity for you—helping wealthy families update their estate plans. These plans are usually outdated, do not reflect their current situation, are not advanced in any way, do not eliminate taxes and do not protect future generations.

Will AI and Wealth Planning Technology Be Obsolete?

I know you may be reluctant to invest time in learning about estate planning with all the hype about AI automating essential estate planning. I don't think this is a valid argument because, in my 40 year career, I have never seen two clients with the same issues and concerns. Proper estate planning is not only about knowing the initial question to ask, but also knowing the right follow-up questions to expose the full depth of the issues. Given your clients' wealth and the complexity of their lives, automated cookie-cutter approaches to estate planning aren't likely to cut it any more than a robo-advisor can solve their investment needs. Only a competent and experienced counselor can fully understand their goals, objectives, fears and concerns and design a plan to address those needs.

Opportunity awaits
The opportunity of a lifetime won't wait forever. When you reflect on your legacy and career, how would you answer the question, “Where were you during the Great Wealth Transfer of the 2020s?”

Randy A. Fox, CFP, AEPis the founder ofTwo Hawks Consulting LLC. He is a renowned wealth strategist, philanthropic estate planner, educator and speaker.