Understanding the issues that drive people’s reactions to estate planning can make a difference in getting them interested in it.Anchiy/iStockPhoto / Getty Images
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Some cultures feel underserved when it comes to estate planning, or may bring a particular historical background to discussions that’s difficult for advisors to understand.
“While communities, particularly racialized communities, are far from monolithic, a lot of the experiences do hold commonalities around how they think about this work,” says Jarvis Sam, chief executive officer and founder of The Rainbow Disruption, a diversity, equity and inclusion (DEI) firm based in Portland, Ore.
“They may not have seen great benefit in their own lives or realities from something like a will or trust. They don’t know the differences between how these elements play out in their life or in their death, and so they choose not to engage at all.”
Speaking to trust and estate practitioners at STEP Canada’s annual conference in Toronto earlier this month, Mr. Sam outlined three ways estate planners can become more inclusive in their discussions with clients:
1. Dig into the barriers
Fear of saying the wrong thing and offending people often stops advisors from digging deeper in conversations, Mr. Sam said. But he encouraged them to try.
“None of us will get the words right every single time,” he said.
Understanding the issues that drive people’s reactions to estate planning can make a difference in getting them interested. Some communities may not feel that providing confidential information about themselves is going to result in a significant benefit.
Black Americans, for instance, may have had a history of dealing with discrimination and systemic issues regarding the value of their housing. Specifically, many statistics have shown houses in U.S. Black neighbourhoods are undervalued versus comparable white neighbourhoods.
Other cultures may believe estate planning goes against religious teachings, preferring to leave things up to fate.
“We don’t want to put them off from that element of their identity. But we can help them to navigate that [estate planning] can exist in addition to [their identity],” Mr. Sam said.
Emphasizing the importance of wills, powers of attorney and end-of-life discussions, and creating openness about how estates work, starts with knowing where a particular client is coming from.
“[Professionals] try to explain to people all the benefits of something. However, if there’s a barrier that’s already blocking how they think about a benefit, we’ve lost them from the beginning,” he said.
Mr. Sam noted people may say things such as, “My siblings are fine,” inferring that an estate fight would never happen in their families. Others don’t believe they own anything of value worth fighting over.
He said estate planners can also emphasize strategies on wealth accumulation and building generational wealth for families.
2. Look inward
Advisors need to consider their team and firm, and whether they truly reflect the community at large and the clients they serve, Mr. Sam said. He suggested they also pay attention to marketing materials, especially on the company’s websites.
“If you don’t even see an element of yourself represented in that space or community, it becomes a red flag,” he said.
When Mr. Sam, a Black gay man, was looking for a firm to manage his own estate, his ultimate choice had members of the team who were Black. He also noticed the firm was doing advocacy work in support of LGBTQ+ communities.
“That told me, at the very least, the firm is concerned and connected with the same topics that matter to me from my cultural identity,” he explained. “And while my race and sexuality do not define me entirely, the reality is, structurally and systemically, those are the two biggest barriers … that impact how I navigate the world.”
Greater diversity can also mean enhanced client relationships and referrals. Research conducted by Mr. Sam’s firm found that when clients sense a cultural connection, it leads to a 78-per-cent greater likelihood of them referring someone to the firm.
3. Recognize bias
When advisors engage in initial discussions with a client or prospect, they develop a series of stereotypes about that person’s experiences, Mr. Sam said.
“We create these narratives in our heads around what their education looks like and their socio-economic status,” he explained. “As a result, we allow for these biases to play out, and we end up underserving and underutilizing these communities in many significant ways.”
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