Bernstein's Jennifer Goode says childless clients are underserved in estate planning
Research cited by InvestmentNews shows childless adults have higher median net worth and are less likely to have a will.
At a glance
Jennifer Goode of Bernstein Private Wealth Management calls childless clients one of the most underserved segments in the industry.
InvestmentNews cites Federal Reserve research showing childless adults carry a median net worth significantly above the general population, and are far less likely to have a will or any formal legal planning documents.
One of the most pressing vulnerabilities for childless clients, Goode said, is the default legal framework that governs incapacity.
Jennifer Goode of Bernstein Private Wealth Management calls childless clients one of the most underserved segments in the industry. Goode, senior national director of the firm's Wealth Strategies Group, told InvestmentNews that advisors who learn to serve them well have a significant practice opportunity. Estate planning conversations, the report notes, often begin with one question — do you have children? — and for a growing and disproportionately wealthy group of clients, that framing misses the mark.
InvestmentNews cites Federal Reserve research showing childless adults carry a median net worth significantly above the general population, and are far less likely to have a will or any formal legal planning documents. Goode reads that gap as an opening for advisors rather than a verdict on the segment.
The traditional estate-planning model, built around guardian appointments and generational wealth transfer, does not translate cleanly to a household with no next generation, Goode said. "Too often, children are seen as a primary reason to put an estate plan in place," she told InvestmentNews. "Conversations around legacy can be more nuanced when someone is looking beyond this default plan, and that can create a hesitancy to engage. But I see this as an opportunity, and advisors should, too."
When no document names a decision-maker
One of the most pressing vulnerabilities for childless clients, Goode said, is the default legal framework that governs incapacity. Where no formal documents exist, state law typically grants decision-making authority to a parent, sibling or more distant relative, according to the report.
Goode said the shift from default planning to intentional legacy design is central to how she coaches advisors at Bernstein. Rather than leading with legal structures, she encourages advisors to ask clients about the people and values that shape their lives. "Who and what do they care about? How do we reflect that throughout their plan?" she said.
Her suggestion for where to start is to identify clients whose planning does not fit neatly within the traditional parent-to-child framework. She would not necessarily treat nonparents as the only group in that base, she said; clients who want a highly personalized plan may also benefit from exploring who is included in their definition of family and digging into their personal sense of significance. "Offering nonparents, and parent clients alike, help with this introspection can provide a real value add for clients," she said.
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