Your financial advisor and your estate planning attorney should work together, with each taking responsibility for the advice they are qualified to give. We welcome that relationship, because your financial life and your estate plan need to work together. Your advisor may know your investments, retirement needs and cash flow extremely well, while we understand the legal documents and the reasons behind their design. You benefit when that information is shared appropriately and each professional respects the other’s role.
Each Professional Owns the Advice They Are Qualified to Give
We don’t tell you which investments to buy, how to allocate your portfolio, or whether your advisor’s investment strategy is the right one. Those questions belong with your investment professional. In the same way, recommendations about whether you need a trust, what its provisions mean, or whether your legal documents adequately protect your family belong with your estate planning attorney. Familiarity with estate planning concepts can help an advisor recognize an issue, but it doesn’t replace a legal review of your particular circumstances.
What a Good Advisor Brings to the Planning Table
A good advisor can make a meaningful contribution to the planning process. They may identify an account we haven’t discussed, explain how much income you need from your investments, or flag that a proposed transfer could leave you short of accessible funds. That information can affect how we design the plan. We want those questions raised while there is time to address them, and we want your advisor to understand enough about the legal structure to help carry out the appropriate account arrangements.
When a Financial Observation Becomes a Legal Conclusion
The concern arises when a financial observation becomes a legal conclusion. An advisor might tell a client that a trust is unnecessary because an account already names beneficiaries, or suggest removing a trust as beneficiary because paying the children directly seems simpler. Those recommendations may overlook why the trust was created, including concerns about a beneficiary’s ability to manage money, family circumstances, or how an inheritance should be administered. A simpler account form doesn’t necessarily accomplish the client’s full set of goals.
Beneficiary Designations Are Where Coordination Matters Most
Beneficiary designations are a good example of where coordination matters. Your advisor can help identify the designations currently on file and explain the institution’s procedures. We can advise on how those designations should fit the estate plan, with tax input where appropriate. Before a designation is changed, everyone should understand the intended result and the consequences of the change. FINRA makes the same point, noting that consulting a tax or legal professional such as an estate attorney can help ensure your beneficiary designations align with your overall financial and estate planning goals.
Administrative Requirements Are Not Document Interpretation
There is also a difference between an institution’s administrative requirements and an interpretation of your documents. If a financial institution needs a trustee certification, has questions about account registration, or won’t accept particular paperwork, your advisor should bring that issue to us. We can work through the legal questions and determine what documentation is appropriate. You shouldn’t have to interpret the trust yourself or relay competing explanations between offices when a direct conversation could clarify what is actually needed.
Disagreement Is Part of Working as a Team
Working as a team also means being willing to discuss concerns. If your advisor believes a recommendation creates a financial problem, we want to understand it. If we see an account arrangement that appears inconsistent with your estate planning goals, we will raise that as well. Each professional should explain the reasoning within their area of responsibility, and you should receive a coordinated explanation of the available choices. Respecting professional boundaries leaves plenty of room for thoughtful questions and productive discussion.
How We Work With Your Advisor
With your permission, we can communicate directly with your advisor and involve your accountant when tax questions require their input. You remain the person making the decisions, and you deserve to understand how the recommendations support your goals. Our role is to advise you on the legal plan and its implementation; your advisor’s role is to provide the financial and investment guidance within their engagement. When each professional does their part and communicates with the others, you get a plan that has been considered from the relevant perspectives without being left to sort out conflicting advice on your own.
If your advisor and your attorney have never spoken, that gap is usually where the surprises come from.
Book a free 15-minute consult call with our Lead Intake Coordinator, Nicole Ott, or give us a call at 978-657-7437. There is no charge and no pressure. The goal is simply to work out what your family actually needs to do next.
You can also download our free report, The Foundational 4 of Estate Planning.
