Small Law Firms

Increasing Cultural Competency For Estate-Planning Lawyers

Warning: This article calls out estate-planning attorneys. Feel free to apply it to your service area where necessary.

By  
on

(Image via Shutterstock)

Historically, the United States systemically excluded women and Black, Indigenous, and People of Color (BIPOC) from land ownership, wealth accumulation, and legal assistance. As a result, these marginalized groups could not transfer wealth generationally, which fed into our current wealth gap:

  • A 2014 report by The Center on Wealth and Philanthropy at Boston College states that American estates will transfer around $59 trillion between 2007 and 2061. Of that $59 trillion, heirs will receive $36 trillion between 2007 and 2061.
  • A 2017 report by the Institute for Policy Studies and Prosperity Now stated that Black people are on track to have zero median household wealth by 2053; Latinos are on track to have zero median household wealth by 2073. Not shockingly, the median white household wealth will climb to $137,000 by 2053 and $147,000 by 2073.

Estate-planning attorneys can help with this wealth gap by helping less-served communities transfer and protect their wealth. Yes, estate planning can be overwhelming. Talking about death, planning for incapacitation, navigating taxes, and protecting your child is not an easy discussion. Estate-planning lawyers must learn how to have this conversation with the lens of cultural humility. For example, a bilingual or multilingual client may need a professional translator to help them understand the documents in their native tongue. Because many marginalized communities haven’t had a tradition of using estate planning, they are not immediately aware of how it works. (And this is independent of socioeconomic status!)

It took my beloved father’s passing to open my eyes and understand how invaluable estate planning is — especially for women. My father died in 2004, and because he didn’t have a will in place, I watched my mom experience the grief of his loss while tying up the loose ends of his life in probate court — at a considerable cost. The first thing she did after that difficult process was to create an estate plan so my brothers and I wouldn’t have to endure the same stress in the event of her passing. She wanted to ensure that her health care agency was intact and secure her intergenerational wealth transfer to her children. My mom changed the trajectory of our family. I will never forget that. I followed my mom’s lead by setting up my estate plan after the birth of my first child. It was one of the most impactful choices I’ve ever made.

Today, I am a Black woman estate-planning attorney who has helped hundreds of women and families establish estate-planning documents. I used to feel so much shame that I (a lawyer, at that!) hadn’t established an estate plan to protect myself and my loved ones. Shame and embarrassment are common feelings that many people express when questioned about estate planning. However, these emotions do nothing but leave us stuck. We must change the narrative from shame to empowerment if we expect to move the needle and protect wealth in marginalized communities.

I have seen the distress caused when people do not have their legal affairs in order. I’ve also seen many families of color struggle because they hadn’t prepared for an unforeseen health crisis or death:

Sponsored

  • Homes get sold for lack of planning;
  • Children get placed with the wrong relatives;
  • Businesses fail;
  • Ethics boards make fatal health care decisions; and
  • Money gets spent on the wrong things.

Additionally, alternative funding opportunities are missed. When asked to contribute to a crowdfunding campaign for a funeral or to donate and help alleviate some of the financial burdens a death can place on a family, I see a missed opportunity and a place where a lawyer could have helped.

Note: Pooling resources is a long-standing and often necessary activity for many marginalized communities, and I never want to disparage that communal nature. Community-mindedness is one of the most beautiful aspects of our American tapestry. But, many Black people continue the crowdfunding practice and sometimes take out predatory loans to bury their loved ones. Such practices have far-reaching historical significance because of segregation in funeral homes and cemeteries across America. Many continue to be. When my dad passed away in Shreveport, Louisiana, many funeral attendees were shocked that we buried him in the “white section” of the cemetery. Even in death, Americans remain segregated.

Marginalized groups haven’t always had access to insurance and other means for planning and building wealth. White insurance providers would sell limited insurance to Black, Brown, and Asian communities (usually, death benefits or funeral coverage). The full suite of insurance was for white customers. While this is no longer the case, the effects of these discriminatory practices linger because marginalized communities do not utilize insurance as much as white communities build wealth and transfer it to the next generation. White people do not work harder to get ahead; this is not true. Now that marginalized communities have more access to wealth preservation tools, we lawyers must leverage opportunities to build wealth with estate planning — for everyone.

I welcome your thoughts on this issue. Please get in touch with me at [email protected].

Sponsored

Iffy Ifeoma Ibekwe HeadshotIffy Ibekwe is the principal attorney and founder of Ibekwe Law, PLLC. She is an estate planning attorney evangelist for intergenerational wealth transfer with effective wills and trusts. Iffy is writing her first book on culturally competent estate planning, available in 2022 (prayers up!). She graduated from The University of Texas School of Law and has practiced law for over 14 years. Iffy can be reached by email at [email protected], on her website, and on Instagram @thejustincaselawyer.

Topics

, , , , ,