Wills & Trust Market - U.S.

Goals

To identify the market size and need for Wills & Trusts in the United States. Specifically, to provide the following data points:
  • Annual market for Wills/Trusts in US is XXM people.
  • Average price for a Will/Trust paid is $XX.
  • Future market growth is predicted to be Y over Z time.
  • Main competitors in this space are ABC with CDE market share.

Early Findings

Market Size (Number of People)

  • According to a survey of 2,400 American adults, 32% of respondents said they "have a will or some other type of estate planning document", a decrease of 25% since 2017. Among respondents who had they have such a document, 23.9% said they have a will and 13% said they have a living trust.
  • As of 2018, the U.S. Census Bureau estimates that there are 235,205,315 Americans over the age of 18.
  • Based on the above data points, this means that about 75,265,700 American adults have some sort of estate planning document, about 56,214,070 have a will, and about 30,576,690 have a trust (or, 32%, 23.9% and 13% of 235,205,315 respectively).
  • According to TechCrunch, the estate planning market in the U.S. is valued at $180 billion.

Average Price for a Will/Trust

  • According to LegalZoom, the cost of a will 'package' (i.e. where an attorney will meet with an individual and draws up their will) typically ranges from $150-$600 dollars, with an average price of $375. The cost could be higher if there are complications with this process wherein the attorney needs to bill for additional hours of work.
  • If the individual is seeking more than just a will, such as other types of estate planning documents as well, the price can range from $1,000 (for single individuals) to $1,500 (for married individuals seeking joint documents).
  • Individuals also have the option to buy a DIY kit to create their own documents. This method can cost anywhere from $10-$650. If the individual wants to have an attorney review their self-made documents, they have the option to hire an attorney at their hourly rate, which can range from $100-$400+ per hour. An attorney would usually require at least an hour to properly review the documents, with additional time needed for more complex situations.

Future Market Growth

  • Between 2015 and 2020, the U.S. trusts and estates industry grew at a rate of 4.3% annually. IBISWorld notes that "the growing number of wealthy households is expected to boost industry assets."
  • A 2018 report from the U.K. (not the U.S. but may still be insightful comparatively) found that the wills, probate and trust market "is expected to see slow but steady growth in the future, supported by a rising number of deaths each year and the continuing aging of the UK population. Services such as a lasting power of attorney (LPA), living wills, and care plan advice are likely to see growth."

Main Competitors and Market Shares

  • According to IBISWorld, there are "no companies with major market shares" in the U.S. trusts and estates industry.
  • Estate planning falls under NAICS code 525920 — Trusts, Estates and Agency Accounts. According to ClassCodes, "this industry comprises legal entities, trusts, estates, or agency accounts, administered on behalf of the beneficiaries under the terms of a trust agreement, will, or agency agreement."
  • According to the NAICS Association, the top businesses based on annual sales under NAICS code 525920 are as follows: Alaska Permanent Fund Corp, Wynnchurch Capital, Wea Insurance Corporation, Moelist & Company, Boston Foundation, Marshall Ilsley, Charles and Lynn Schusterman, Lime Rock Partners, and Summer St. Capital Partners.
  • Alaska Permanent Fund Corp: $3.9 billion in sales.
  • Wynnchurch Capital: $573 million in sales.
  • Wea Insurance Corporation: $485 million in sales.
  • Moelist & Company: $147 million in sales.
  • Boston Foundation: $128.4 million in sales.
  • Marshall Ilsley: $103 million in sales.
  • Charles and Lynn Schusterman: $97.89 million in sales.
  • Lime Rock Partners: $64 million in sales.
  • Summer St. Capital Partners: $54 million in sales.
  • Using the estate planning market size from above ($180 billion), we were able to calculate market share percentages using the sales figures above. The companies above the following market shares respectively: 7.02% (Alaska), 1.03% (Wynnchurch), 0.873% (Wea), 0.265% (Moelist), 0.23% (Boston), 0.185% (Marshall), 0.176% (Charles), 0.115% (Lime), and 0.097% (Summer).

Results of Early Findings

  • During this initial research, we were able to find or triangulate data that addresses each of your core areas of interest. The only exception is that of the future growth of the market, for which information appears to be more elusive. However, it is possible that our team could continue researching this topic to potentially uncover any other hidden insights, or attempt to triangulate existing data to come up with an estimate. We may or may not be able to do this successfully depending on what other types of information we can uncover during the continued research.

Proposed next steps:

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