Why Financial Advisors Are Important To An Estate Plan

Need a financial advisor? Yes! Consider including your trusted financial advisor in your estate planning discussions. If you need help with your estate plan, a financial advisor can provide you  the help you need.

The first meeting with an estate planner can feel intimidating. Because there is so much new information presented all at once, customers sometimes “blank” on queries. When it comes to money, your financial advisor knows better than you do. Your financial advisor should be well-versed in your long-term objectives and familiar with the ownership structures of your assets. In order to achieve your long-term financial goals, it is essential to have a solid estate plan, and any competent financial advisor will tell you as much. 

The following are some ways in which your financial advisor can assist you and your estate planning attorney:

Planning Your Estate: Getting Ready for Your Meeting

When you begin working towards an estate plan, the first thing you want to know is, “What do I bring with me to an estate planning meeting?” The short answer is that your estate planner will need a general accounting of your possessions. You should know who your accounts and insurance’ beneficiaries are and how your assets are named. When getting ready to meet with an estate planning attorney, financial advisors can assist you determine and compile this data.

The first thing an estate planner asks you is about your assets. Responses include a variety of assets, including:

• accounts in banks and pension funds
• Trust asset
• real estate, assets, or wealth

A lawyer who specializes in estate planning can help you establish a comprehensive strategy for passing on your wealth to your heirs. Estate plans are drafted based on the information provided by clients because lawyers do not have access to their clients’ assets or financial accounts. Your attorney will be unaware of any missing assets or bank accounts if you fail to include them in your estate plan. Having a revocable living trust, for example, can make the absence of that account problematic.

Now is the time to consult with your financial planner: Your financial advisor is the go-to guy for information on your entire asset accumulation because of their constant access to your portfolio. Together, you and your estate planning attorney may make sure that all of your assets are accounted for by consulting with your financial advisor.

Preparing For Retirement

Estate planning is an important part of financial security, and having a financial advisor to guide you through the process is essential. A financial advisor can help you develop a plan that reflects your goals and values, and can help you understand the tax implications of your decisions and the complexities of estate planning. 

A retirement planner’s services help their clients prepare for retirement in all aspects, from meeting their basic “needs” like income and health care to fulfilling their “wants” like making a positive impact through charitable giving and leaving a lasting legacy.

Therefore, to be a competent retirement planner, one must first be fully qualified and licensed as a financial advisor, and second, have specialized knowledge on schemes and financial solutions specific to retirement, such as CPF, private annuities, and various types of insurance that clients may need for retirement.

To help clients successfully establish, implement, and manage a retirement plan, service, empathy, and patience are vital skills. Clients’ happiness takes precedence over even the most serious financial concerns.

Updating Beneficiaries

Whenever there is a change in your life or family that could alter who you want to inherit your assets, you should revise your estate plan to reflect the new situation. Since most clients only see their lawyer when a problem arises, that person lacks up-to-date information about their case.

In contrast, financial advisors often check in with their customers to discuss developments related to their investment portfolios. Financial advisers generally have up-to-date information about their clients’ personal lives and families because of the regular meetings they have with their clients. Your financial advisor is more likely to be informed of major life events than your estate planning attorney, such as a marriage, birth, adoption, or death. Your financial advisor can help you update your beneficiaries with your lawyer if you let them know about any major life changes.