Filene Report Reveals Members Most Likely to Use Trust Services
Women, those with high education levels and defined contribution plan holders are among those most open to establishing a trust account, according to a new Filene Research Institute report.
As more members are living off 401(k)s, 403(b)s, and individual retirement accounts with plans to leave slices to their heirs, credit unions may be in a prime position to help navigate the asset shift, the Credit Union Implications of Living Trusts report revealed. Grantors and beneficiaries who are treated well by the credit union will be much more likely to keep their relationships intact.
About one in 10 U.S. households with an adult at least 50 years old has a living trust, according to the report. The average trust holder is 72 with 14 years of formal education, about $1 million in non-housing wealth, and has three children. As more retirees receive retirement benefits as lump-sum rather than annuity payments, more have an opportunity to set up living trusts, Filene noted.
The data also showed that women are about one-third more likely than men to establish living trusts and they place larger shares of their assets there. Savers and investors with lump-sum assets are also the best targets for establishing living trusts. The Filene report said having a defined contribution plan, like a 401(k), "is a powerful determinant of the likelihood of establishing a living trust." Those with a DC plan are twice as likely to set up a trust as those without, according to Filene.