What are the best estate planning practices for financial advisors?

Listening to the client, I mean truly listening, especially regarding their family dynamics, viewpoints on life, the emotional and financial goals for them beginning the estate planning process is the most crucial part of the planning process.

Estate Planning can be a scary subject for your clients. Starting with conversations about basic documents such as a will, power of attorney and health care proxy can be a way to get your clients to begin the estate planning process. For many people, those basic documents may be all they need. By starting with these documents, your clients can get to know and trust an attorney who will work with you to keep the process going if more complex planning, such as revocable or irrevocable trust are necessary. There is that famous quote about the longest journey starts with a single step. This can apply to estate planning as well.

Tax laws are what they are. They are black and white. The important part of the estate plan ( and any financial plan) is getting the client to articulate their emotions about their estate. It’s not just about who gets what but more so about why they get it. Once you understand the importance about passing something on to somebody else, it makes it easier for you to put the plan together. Makes it easier to encourage one to do something when they are emotionally invested in the process, whether that be legal or financial.

Why is listening so crucial in estate planning? Because every individual has different priorities and goals. For some, it's about ensuring their family's future is secure, while others focus on leaving a legacy or supporting charitable causes. By genuinely listening, we can tailor a plan that aligns with the aspirations of all stakeholders. But it's not just about crafting the plan; it's crucial that everyone involved understands it.

The one thing that puts a distaste in my mouth is when I am in a conversation with anyone and they answer " I UNDERSTAND" no, they dont understand. Similarly - it would be hypocrytical of me to try and understand my client's situation. The only thing I can do is ask open ended questons that reveal data, goals, and specific situations that help understand where the client is financially - where the client needs to be and wishes to be and what the client lacks there of or has an abundance of. Only then can I put together a case analysis based on the above and recommend how to move forward in the most efficient and productive way.

Understanding the Value Proposition: A value proposition is a concise statement that communicates the unique benefits and advantages a service or product offers to its target audience. For estate planning advisors, it's about demonstrating what sets them apart from the competition and educating your clients on best options available.

Educate them at a level they will understand! Far too often the industry talk and acronyms take over our vocabulary. Always best to have them explain what they know first to you. This way you can understand what level to talk to them at. Also, refer out what you don't have expertise in.

Providing a balance sheet and life insurance schedule is critical for the estate planning attorney. Analyzing which assets bypass probate via beneficiary outright is important and is a big part of a big picture estate plan.

Identify Your Unique Selling Proposition (USP): Start by analyzing your strengths, expertise, and the specific services you offer. What makes you different from other estate planning advisors? It could be your years of experience, specialized knowledge in a particular area, or innovative solutions. Your USP forms the foundation of your value proposition. Understand Your Ideal Clients: To tailor your value proposition effectively, you must know your target audience's needs, concerns, and preferences. Estate planning clients can vary widely in age, wealth, and objectives, so segment your market and create unique value propositions for each segment.

The reality is that we're not just estate planners; we're lifelong partners in our clients' financial journey, adapting strategies to meet their changing needs and goals. It’s a continuous journey of adjustment and alignment, ensuring that our clients' estate plans always serve their best interests.

Taking a proactive and dynamic approach to estate planning as a financial advisor not only helps in responding to changes but also fosters a stronger, more collaborative relationship with our clients. It's crucial to emphasise that life is fluid, and circumstances can evolve over time. As such, the estate planning process should be viewed as a continuous dialogue rather than a static transaction. Ultimately, estate planning is a collaborative effort that requires ongoing communication and adjustment. We frame it as a continuous process, we empower our clients to navigate the complexities of wealth management with confidence and ensure that their legacy is preserved according to their wishes.

Providing Peace of Mind Through Expert Estate Planning: Our seasoned team of advisors specializes in creating tailored strategies that protect your assets, minimize taxes, and secure your family's future, ensuring you have peace of mind. Unlocking Wealth Preservation Opportunities: With decades of experience in estate planning, we identify innovative solutions to safeguard your wealth, ensuring your legacy endures for generations by having continues monitoring and adjustment of your plans when needed.

Communication is key in all parts of financial advice and as a beneficiary it is even more important. To understand the options available to them and the most tax efficient way of accessing the fund is important. They are treated the same as a client, with jargon free advice, so this empowers them to make their own informed decisions.

It’s also critical to coordinate the legal with the financial upon execution of the documents, such as changing titling and beneficiaries on assets.

So true and as an employer it’s always good to remind your team. I’ve found about 50% of employees don’t have beneficiaries listed on their 401k.