3 Strategies to Ensure You Don't Get Lost in the Great Wealth Transfer

2. Don’t be afraid of trusts.

Trustor, trustee, irrevocable, revocable … trust planning can sound complicated. The process commonly requires coordination among multiple professional advisors and a lot of paperwork, some of which requires circulation among and approval by several stakeholders.

While trust planning might seem complex, it’s worth remembering that it’s an essential part of the Great Wealth Transfer — particularly for higher net-worth clients. Whether for tax benefits or creditor protection, trusts are a good solution to help pass on wealth between generations.

Even money that your client owns outright may pass through their will in trust for their beneficiaries. So don’t put your head in the sand if a client is willing to let you in on how their trusts operate.

By understanding trust planning, you can make yourself a valuable asset in helping ensure your clients’ estate plans move forward smoothly. For instance, say your client wants an investment account to avoid probate, but this account isn’t placed in their revocable living trust. This could subject the asset to probate after the client passes, and potentially force their loved ones to spend unnecessary time and money on the process. You can help prevent this by knowing what assets should be placed in trust and advising your client accordingly.

3. Make an effort to know your clients’ other advisors.

Your financial guidance is invaluable to your clients, but they may have other needs outside of your expertise. Your clients may have a team of professionals they turn to for these needs, including a CPA, an insurance broker, and — yes — even an estate lawyer or two.

In the course of planning an estate, a lawyer will sometimes meet with the representatives named in the plan, to have them sign paperwork or ask questions about their roles. This allows them to build relationships with your clients that span generations. The same could be true of their CPA and insurance broker, in terms of who your client looks to regularly for guidance on family finance matters.

You can create this same kind of long-lasting relationship with your clients by making yourself an essential part of their advisory teams. Getting to know their other advisors is a great start. Together, you can combine your efforts to ensure your clients have a comprehensive and robust plan in place for all of their financial, estate planning, and family needs.

With the Great Wealth Transfer on the horizon, positioning yourself as an essential part of your clients’ family plans can help ensure that your services aren’t passed over when their assets are passed onto the next generation.

Allison Lauren Lee, Esq., is director of Trusts & Estates Content and Strategic Development at FreeWill.

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