Bridging the Gap: Estate Planning for African Americans

This article was originally published in Estate Planning, a Thomson Reuters journal.

As estate planning practitioners living in a diverse country, it is imperative to understand and become comfortable with the idea that different people may require differentiated approaches, practices, and products. Utilizing a client-centered approach creates space for the nuance that makes each client unique, and for practitioners to become more effective serving people who may have different lived experiences than they do. Prioritizing time to listen and learn about the clients that practitioners serve and advise cultivates rapport and trust, moving the work beyond purely transactional interactions.

While the above is the gold standard planning approach for all clients, this article will explore these concepts in the context of advising African American clients. Though the article centers a specific group, the authors acknowledge the experiences, perspectives, and planning needs amongst this population are not monolithic

The United States African American population grew to 49.2 million in 2024,representing growth of 36% since 2000,and a new high. This segment of the population is relatively young and growing in educational attainment, especially amongst African American women. Additionally, while the number of businesses started by African Americans is growing, at 3%, they make up a small share of US businesses. Furthermore, according to 2023 data, Black homeownership rates were 45.9%, compared to 73.8% for white Americans, representing a 2.7% gain over the last decade, though the gap persists. Growth in these areas has led to a 114% increase in buying power over the last few decades. Despite significant contributions to American society, however, many African Americans continue to experience systemic barriers to building and preserving wealth. This is relevant to many African American clients, regardless of where on the wealth spectrum they may be.

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