Using Trusts: Current Landscape and Outlook
Greater Need for Both Tax and Legacy Planning Drives Increasing Use of Trusts by RIAs and Fee-Based Advisors
Jefferson National’s Latest Survey Shows Majority of RIAs and Fee-Based Advisors are Underutilizing the Tax Advantages of Investment-Only Variable Annuities When Funding Trusts
Roughly half of Registered Investment Advisors (RIAs) and fee-based advisors have increased their use of trusts in recent years. Trusts are becoming increasingly important for many estate plans as more than $12 trillion will be inherited by Boomers in ‘The Great Transfer’ of wealth—and an estimated $30 trillion will be transferred from Boomers to their heirs
While legacy planning has traditionally been the primary factor driving the use of most trusts, advisors say that tax planning is growing in importance. Eighty percent of RIAs and fee-based advisors now cite the importance of using trusts to mitigate the impact of taxes for some of their clients. More than two-thirds (69 percent) of advisors say they plan to increase their use of trusts over the next five years—and 70 percent of them say this increase is because trusts are an effective solution for both tax planning and legacy planning.
About this survey
More than 350 responses from participating advisors were collected online between March 15 and April 2 of 2015 as part of Jefferson National’s series of ongoing surveys addressing the issues that RIAs and fee-based advisors care about the most. The margin of error in this survey was +/-5%.