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Break the Habit: Digital Estate Planning as an Essential Tool and Differentiator

The time and complexities involved in providing estate planning have long made it an outlier as a service. Investment advisors and wealth managers at traditional credit unions, banks, insurers and other financial services providers have been relegated to the sidelines as they refer their clients, customers and members to attorneys, as is the typical practice.

That practice, however, is changing as financial services continue to rapidly evolve in the digital world. Your organization will no longer have to pass your consumers—as well as the income they can generate—on to lawyers, keeping you from deepening those relationships.

Virtual estate planning platforms have been hard at work, developing their digital muscles, eradicating the need for attorneys, and even in-person servicing if an individual chooses. Empower your firm to break the habit of making third-party referrals and to deepen the personal touch and value they build with their clients, helping those they serve to navigate their financial lives and plan their legacies more holistically.

A Hybrid Advisor-Client Experience

“A streamlined digital estate planning platform delivered as a hybrid advisor-client experience provides a unique opportunity for advisors to expand their service model, amplify relationship alpha, power retention, and create advisory pathways to the next generation of clients,” a new report from Javelin Advisory Services reads.

Titled “Digital Estate Planning: A New Frontier for RIAs,” the think tank’s report focuses on the power of digitizing the creation and storage of relatively simple but vitally important documents such as wills, revocable trusts, and medical directives. It cites OneDigitalTrust as a leader in creating that new nexus of advancing fintech innovation and growing advisor value, as shown in the illustration below.

Javelin Research found OneDigitalTrust to provide advisors innovation and value.

The Relationship Alpha for The Next Aging Generation

Millennials have surpassed baby boomers as the largest generation in the United States. Those 20-somethings to 40-somethings are digital natives. They’re accustomed to living online – including working, shopping, learning, and banking – but they’re still real, live human beings, naturally, who can benefit from professional guidance and advice through their journeys.

Along with traditional matters such as raising families, forging and maintaining careers, caring for aging relatives, and the vicissitudes of aging, they also find themselves with their own unique set of stressors, as the Javelin report astutely illustrates in this figure below.

Platforms like OneDigitalTrust help to calm financial services providers clients' anxiety, Javelin found.

The “Demographics” section in the above figure includes “increased personal wealth,” among other factors that present an opportunity to RIAs and other financial services providers who can most seamlessly and effectively combine high-tech and high touch for this cohort of adult Americans.

As the report observes, all these factors imply that scaled delivery of personalized solutions points to demand for an enhanced user experience. Digital estate planning combined with direct conversations with clients about this particularly weighty topic helps cement that relationship with the client and potentially with the other stakeholders in the next generation, especially if they, too, join the discussions.

Ultimately, it’s about the effectiveness of advisor-client communication, a significant currency that makes financial advisors more than order-takers in a digital world of cookie-cutter, low- or no-cost options. That’s not a recipe for long-term success.

“The legacy [estate-planning] conversation is emotional, often covering philanthropic and generational aspirations,” the Javelin report observes. It points to this empowering feature in our platform: “OneDigitalTrust, for example, creates a client area where notes can be appended to the system, allowing the client to memorialize and express those aspirations and sentiments for advisors, kids and other beneficiaries.”

Differentiation and Commoditization

That vital communication feature – among others – helps OneDigitalTrust continue to push out the leading edge of humanizing digital estate planning and, most critically, the ability for advisors to differentiate themselves in the uber-competitive fintech world.

OneDigitalTrust, as the Javelin report observes, is also out front with integrating personal financial data into its platforms. That gives financial services providers the ability to wade through multi-party, multi-platform morass to add even more value.

Financial services providers are keenly aware of the commoditization of their products and services and the need to differentiate. A robust foundation for that is personal service that uses digital products to help leverage meaningful conversations around the unique access financial planners have to their clients’ assets.

That conversation should include how to distribute those assets when the time comes without sending that part of the business elsewhere. “Advisors must consider expanding their business model by leveraging digital estate planning solutions,” the Javelin report concludes. “New channels of dialogue are opened with beneficiaries and family members who can become clients and advocate for the advisor’s expertise.”

And that helps the advisor and their employer build their value and legacy.

170M Americans need an estate plan. OneDigitalTrust offers a white-label, turnkey estate planning platform with pricing options tailored to the needs of individual credit unions and financial advisors.

Contact us today to learn more!

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Blog INSIGHTS

Mourning Has Multidimensional Costs – How Effective Estate Planning Can Ease Some of the Stress

Effective estate planning is crucial to the people your bank, credit union, financial advisory or other financial services company serves, whether they have come completely to grips with that reality or not. Having the right plans in place helps reduce the burden that loved ones bear in settling an estate and can significantly reduce the painful wait for it to settle.

The grief that mourners are left dealing with only makes the burden heavier. The costs can add up, and they involve more than just money. For instance, a study by the University of Georgia’s College of Public Health found that people in that state were 1.5 times more likely to visit a doctor 20 or more times in the two-year period after the death of a loved one. Even more striking, those over age 50 were more than twice as likely to die during bereavement.

The researchers cited depression and stress from the bereavement itself – the effects of which can include reverting to bad habits such as smoking, drinking and ignoring medical conditions. All that can add up to missed work, adding to the physical and material costs associated with the bereaved’s own health and paying the bills the deceased left behind.

Working-Aged People Bear the Burden

Wherever they live, the psychological and physical burden is most keenly felt by working-age people, those most likely to be part of the sandwich generation – responsible for caring for children and parents alike.

Employers can help. While there’s no federal bereavement leave policy, some states have them, and so do about 90% of U.S. companies, according to the International Foundation of Employee Benefit Plans.

But that time off is very limited, and one of the potentially biggest stresses, dealing with the liabilities and assets of the deceased’s estate can take months, not just a few days following a funeral. That time and uncertainty just add to the stress that, as we alluded to above, can take years off a person’s life.

That’s also one area where you can really step up as a holistic provider of financial services. A great first step is to offer streamlined, digital online estate planning platforms that are easy to use, simple but powerful, and complete. OneDigitalTrust is just that, as featured in new Javelin research. We provide single sign-on access to create legally valid wills, trusts, power of attorney, healthcare directives, guardianships, probate trackers and more, even a pet trust. It’s not just legal documents but we also offer estate analysis and optimization tools, plus hyper-personalized info to understand the implications of key aspects of the plan. These are all features that democratize capabilities previously available to the ultra-rich only. And, we provide a virtual vault for organizing all this, along with strategic guidance throughout your journey.

Cross-sell Effective Estate Planning Across Generations

Banks, credit unions, financial advisors, insurance agencies, benefits providers, and more can offer an easy-to-understand, effective estate planning process to help your organization attract and retain customers and members. Banks and credit unions that also have in-house advisors and insurers can use our platform as an opportunity to upsell your other services. That creates the opportunity for fee income while engaging with the consumers you serve in a highly valuable, personal and meaningful way. Our powerful platform also provides your organization with rich financial data on your members and customers so you can understand and better serve them. That’s a powerful cross-sell for you and a small cost many an aging baby boomer, Gen Xer, and even younger generations might happily bear when presented with the opportunity.

170M Americans need an estate plan. OneDigitalTrust offers a white-label, turnkey estate planning platform with pricing options tailored to the needs of banks, credit unions, financial advisors, wealth managers, insurance firms, employee benefit providers and more.

Contact us today to learn more!