Empowering Legacies: Building a Financial Team and How an Estate Attorney Can Help Black and Brown Families

Welcome to the Cultural Catalyst! During the Month of August we're talking about National Make a Will Month. We'll be discussing why it's important for Black and Brown families to have a comprehensive estate plan, including the role of an estate attorney in building a strong financial team.

This blog explores the importance of building a financial team and how an estate attorney can play a pivotal role in this process.

Key Trends of Estate Planning for Black and Brown Families

Estate planning is the process of organizing and managing one's assets during their lifetime and after their death.

1. Increased Awareness but Limited Action: During the COVID-19 pandemic, more people recognized the need for estate planning, with one survey noting a heightened desire to create wills. However, actual follow-through was limited; two out of three adults still lack a basic estate plan.
2. Racial Disparities in Estate Planning: African Americans and Hispanics are significantly less likely to have wills compared to White Americans. Specifically, 76% of African Americans and approximately two-thirds of Hispanics do not have a will. dDistrust of the system and misconceptions about property ownership and inheritance laws contribute to this disparity.
3. Impact on Generational Wealth: Lack of estate planning can hinder the effective transfer of generational wealth. Properties inherited without a will often end up as tenants-in-common, leading to potential forced partition sales that disproportionately affect BIPOC communities.Forced partition sales have historically led to significant land loss for African Americans, Hispanics, and Native Hawaiians.

Research from ACTEC Law Journal

Challenges Faced by Black and Brown Families

Despite the undeniable importance of financial planning, Black and Brown families often encounter unique challenges that can hinder their ability to build and maintain wealth. Some of these obstacles include:

Historical Discrimination

Systemic racism and historical discrimination have led to significant disparities in income, homeownership, and access to financial services. These inequalities can make it difficult for families to accumulate wealth and pass it on to future generations.

Distrust in Financial Institutions

Past experiences of discrimination and exploitation have fostered a deep-seated mistrust of financial institutions among Black and Brown families. This skepticism can deter individuals from seeking professional financial advice.

Building Your Referral Team for Estate Planning

Given the challenges faced by Black and Brown families, it is crucial to have a strong support network when planning estate. This referral team should include professionals who understand the unique needs and concerns of diverse communities. Below are the most common certifications an estate planner may hold.

Estate Planning Qualification

Estate Attorney

Qualifications:

• Juris Doctor (JD) degree from an accredited law school. Passed the state bar exam. Continuing legal education requirements

Chartered Trust and Estate Planner (CTEP) ??

• Certifying Body: Global Academy of Finance and Management

Qualifications: Three years of experience in estate planning or trusts. Undergraduate or graduate degree in finance, tax, accounting, financial services, or law—or an MBA, MS, PhD, or JD from an accredited school or organization

Accredited Estate Planner (AEP) ??

Certifying Body: National Association of Estate Planners & Councils

• Qualifications: Licensed to practice law as an attorney, to practice as a CPA, or hold designations such as CLU, ChFC, CFP, or CTFAEngaged in estate-planning activities as an attorney, accountant, life insurance professional, financial planner, or trust officer

Certified Trust and Fiduciary Advisor (CTFA) ??

Certifying Body: American Bankers Association

• Qualifications:
• Minimum of three years of experience in wealth management and completion of one approved wealth management training program

Related Wealth Management Advisory Certifications ??

• There are also a number of certifications related to estate planning that may be useful, including:
• Certified Financial Planner (CFP)Chartered Financial Consultant (ChFC)Certified Public Accountant (CPA)Chartered Life Underwriter (CLU)

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How Estate Attorneys Can Help

Estate attorneys are invaluable for your referral team with navigating the complexities of estate planning and overcoming the unique challenges faced by Black and Brown families. Here's how they can make a difference:

Facilitating Family Discussions

One of the most challenging aspects of estate planning is initiating conversations about money within the family. Estate attorneys can act as neutral third parties, guiding these discussions and ensuring all voices are heard.

Drafting Wills and Trusts

A well-drafted will or trust is crucial for ensuring your assets are distributed according to your wishes. Estate attorneys have the expertise to create legally sound documents that protect your family's interests.

Managing Estates

When a loved one passes away, managing their estate can be an overwhelming and emotional process. Estate attorneys can handle the legalities, relieving the burden on the family and ensuring a smooth transition of assets.

Disclaimer for Cultural Catalyst

The information provided by Cultural Catalyst is for educational purposes only. While we aim for accuracy, we make no guarantees and are not responsible for any errors or omissions. The views expressed are those of the authors and do not reflect the official stance of Cultural Catalyst.

Cultural Catalyst does not offer legal, financial, or professional advice. Consult qualified professionals before making decisions based on our information. We are not liable for any losses or damages arising from the use of our content.

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References

Dumont, M. (2024, April 25). Certifications for Estate Planning. Retrieved from Investopedia.

Roberts, K. S. (2021). Racial Inequities & Estate Planning. ACTEC Law Journal, 47(1), 87-130. Retrieved from https://scholarlycommons.law.hofstra.edu/cgi/viewcontent.cgi?article=1227&context=acteclj