Why Financial Advisors Should Be Involved in Estate Planning

Today, we’re diving into an often overlooked but crucial aspect of financial planning: estate planning. Specifically, we’ll discuss why financial advisors should actively participate in estate planning with their clients. If you’re a financial advisor or someone who works with one, this blog is for you.

 The Opportunity for Financial Advisors

Estate planning is more than just writing a will; it’s about ensuring your client’s financial legacy is managed and distributed according to their wishes. Let’s consider some compelling statistics:

• 93% of clients want estate planning advice from their financial advisors, yet only 22% are receiving it.
• 90% of heirs choose to leave their benefactor’s original financial advisor when the benefactor, often a parent or spouse, dies.

This data highlights a significant opportunity for financial advisors to enhance their services and strengthen client relationships.

 Why Financial Advisors Should Be Involved

1. Holistic Wealth Management

   Financial advisors already have a deep understanding of their clients’ financial situations, goals, and concerns. Incorporating estate planning into your services allows you to create a more comprehensive financial plan. This not only strengthens your relationship with clients but also ensures all aspects of their financial lives are aligned. Advisors are uniquely positioned to identify estate planning gaps that might be overlooked in a brief consultation with an estate planning attorney.

2. Ensuring a Smooth Transition

   One of the main goals of estate planning is to ensure that assets are transferred smoothly to the next generation. Financial advisors can play a critical role in this process by working closely with estate attorneys to ensure everything is in order. They can ensure that beneficiary designations on financial assets are consistent with the overall estate plan and that account ownership structures eliminate the need for probate.

3. Enhancing Client Relationships

   Assisting with estate planning demonstrates to clients that you care about their long-term well-being and that of their families. This can deepen trust and loyalty, leading to stronger, more enduring client relationships. Moreover, engaging in the estate planning process sets the stage for building strong relationships with your clients’ heirs, continuing the legacy of providing valuable financial planning.

4. Staying Competitive

   The financial advisory industry is highly competitive. Offering estate planning services to your clients can set you apart from other advisors. Clients are increasingly looking for one-stop solutions for their financial needs, and being able to offer estate planning makes you a more attractive choice. By staying ahead of the curve, you not only attract more clients but also retain existing ones.

 How Financial Advisors Can Participate

At Alexander Legacy Law, we’ve developed a streamlined process to facilitate financial advisors’ involvement in their clients’ estate planning:

1. Initial Meet and Greet

   If you’re a financial advisor interested in hands-on estate planning for your clients, schedule a meet and greet with me. This initial conversation will help us understand how we can work together to benefit your clients.

2. Scheduling the Estate Planning Design Meeting

   When you identify a client with an estate planning need, use our calendar link to schedule a convenient time for a Zoom estate planning design meeting. Prior to this meeting, your client will establish an estate planning portal, where they can upload relevant documents and outline key estate assets and family members.

3. Participating in the Design Meeting

   During the Zoom design meeting, we’ll discuss the estate planning goals and outline a plan to ensure these goals are met. As the attorney, I will handle the legal implementation, while you, the advisor, will manage the overall financial plan.

4. Review and Implementation

   Our law firm will customize the estate plan, including wills, trusts, powers of attorney, and more. We’ll then review the documents with you and your client to ensure everything is perfect. Once finalized, the documents will be sent to the client with clear instructions for execution.

5. Ongoing Review and Updates

   As part of your annual client conversations, you can inquire about any changes in family circumstances that might warrant an update to the estate plan. This proactive approach ensures that the estate plan remains current and effective.

 The Benefits of Financial Advisor Participation

Participating in estate planning is a win-win for both financial advisors and their clients. It ensures comprehensive financial and estate planning, reduces the risk of unintended estate consequences, protects assets, ensures smooth transitions, enhances client relationships, and gives you a competitive edge in the market.

Let’s Work Together

If you’re a financial advisor not yet actively involved in estate planning for your clients, now is the time to start. And if you’re a client, ensure your advisor is taking this essential step to secure your and your family’s financial future. Contact me, Jonathan Alexander, at Alexander Legacy Law for more information or to schedule a consultation today. Let’s work together to ensure your estate planning needs are met with the utmost care and expertise.

Feel free to reach out with any questions or for assistance. Schedule your consultation today and take the next step in your estate planning journey. Call us today at (949) 334-7823 for more information.