Cody Barbo, CEO of Trust & Will, notes that rising financial anxiety and significant home equity appreciation are prompting more Americans, particularly Baby Boomers and Gen X, to consider estate planning and leveraging home equity through tools like reverse mortgages for retirement expenses, caregiving, or assisting adult children.
The intersection of financial stress, home equity, and estate planning presents a significant opportunity for financial and real estate professionals to guide clients through complex decisions regarding wealth management, retirement security, and legacy planning.
Rising financial anxiety and substantial home equity growth are prompting a shift in how Americans approach estate planning and retirement, according to Cody Barbo, CEO of Trust & Will. A recent report by the company found that 54% of Americans are experiencing unprecedented financial stress, a sentiment echoed across all income levels.
Simultaneously, many older homeowners, particularly Baby Boomers, possess significant home equity due to decades of property value appreciation. This confluence of factors is driving increased consumer interest in leveraging this equity for various needs, including home renovations, supporting adult children, or covering retirement and healthcare expenses. Barbo highlighted that reverse mortgages are among the tools seniors are considering to access this wealth.
Despite a heightened motivation for estate planning, a significant barrier remains: many individuals do not know where to begin. The Trust & Will report indicates that 27% of consumers would prefer to develop an estate plan with a financial advisor, underscoring the importance of trusted professionals in guiding this process. Barbo suggested that real estate professionals, who have already established trust with clients, could also play a role in initiating estate planning conversations.
The company's platform serves a broad demographic, from 18-year-olds setting up healthcare proxies to 102-year-old clients. However, Gen X is identified as a particularly underserved generation, often caught in the "sandwich generation" caring for both minor children and aging parents, while also potentially having paid-off homes that could be leveraged for needs like building accessory dwelling units (ADUs) for family members.