Eight reasons clients give for not wanting to engage in estate planning (and counterarguments CPAs can offer).

• Author: Slott, Edward A.

Estate planning has become the third largest growth area for most CPA firms in the last five years. Many practitioners, as well as their clients, have realized the importance of estate planning. However, some clients are still not convinced. The following are some reasons clients give for not wanting to engage in estate planning, and some counter-arguments that practitioners can offer.

1. "It costs too much." Let the client know the true long-term costs of not engaging in estate planning--e.g., higher estate taxes and property going to persons other than the intended beneficiaries. Estate planning is an investment that can return over 100 times in tax savings (even more in larger estates).

2. "I have to study the issue more closely." This is simply procrastination. Inform the client that if he puts off estate planning for too long (e.g., after the death of a spouse, an illness leaving the client incapacitated, a change in tax law or other unexpected event), various options and opportunities may no longer be available.

   3 . "I don't know what I want to do with my estate." Let the client know that if he does not have an estate plan, the state will provide one through its intestacy provisions. Chances are, the state's plan will not be as desirable. The client's worst decision is better than the government's best decision.

4. "My spouse and I can't agree on what to do." If the failure to agree means that the client does nothing, the surviving spouse will control everything and make all the decisions post-mortem. With a will or trust, the spouses can try to come to an agreement and carry it Out.

5. "I don't want to think about death." The client has to realize the effect the lack of planning might have on his family, who would be left without a direction or plan. Costly litigation could ensue as a result of the client's refusal to plan things out in advance. Estate planning lets the client's family know that...