Does Your Client Need an Attorney? Estate Planning Software + Legal Counsel = Estate Planning Success
Estate planning is an essential part of securing a client’s financial future and ensuring that their wishes are honored after they pass.
As a financial planning firm, you are already offering guidance on parts of a client’s estate planning, such as their investments, retirement accounts, and any insurance policies they may have.
Have you considered offering other services as well?
- Despite the importance of estate planning, less than half of all Americans have an estate plan or will in place.
- While there are many aspects of estate planning that may require an estate planning attorneys involvement, financial planners can play a big role in the organization and execution of a person’s estate plan.
- Good estate planning software can help a financial firm streamline the planning process, empowering firms to offer more comprehensive services while also saving time and resources.
For any savvy and forward-thinking financial firm, adding estate planning services to your repertoire could be a game-changer for its clients. It allows your client to have a more holistic understanding of their financial landscape while helping you to ensure they are equipped to protect their wealth and legacy the way they want to.
That said, estate planning isn’t always straightforward. It often requires a balance between technology-driven solutions, such as estate planning software, and the expertise of legal counsel.
Knowing how each of these resources can work together will help you create the most comprehensive estate plan for your client’s needs today and well into the future.
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Start Your Free 7-Day TrialWhat Is Estate Planning and Why Is It Important?
Estate planning involves preparing for the transfer of an individual’s assets after death.
This can include a variety of factors, such as:
Creating a Will:
Establishing clear instructions for the distribution of assets and personal belongings to designated beneficiaries.
Setting Up Trusts:
Protecting and managing assets, minimizing tax liabilities, and ensuring financial support for specific dependents or charitable causes.
Designating Power of Attorney:
Appointing someone to make legal, financial, or healthcare decisions if the individual becomes incapacitated.
Healthcare Directives:
Documenting medical preferences to guide care during serious illness or inability to communicate.
Guardianship for Minors:
Naming guardians for minor children or dependents, ensuring their well-being in case of unforeseen circumstances.
Tax Planning:
Implementing strategies to reduce estate taxes and maximize financial efficiency for heirs.
Avoiding Probate:
Planning methods to bypass or simplify probate, saving time, costs, and stress for loved ones.
Charitable Contributions:
Allocating specific assets to charitable organizations, aligning with personal values and philanthropic goals.
For financial planners, incorporating estate planning services into your arsenal of resources will add significant value to your practice, helping your clients achieve greater peace of mind and reinforcing the comprehensive nature of your offerings.
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Get Started TodayThe Legalities of Estate Planning
Estate planning is a critical process that involves a variety of steps to make sure an individual’s wishes are honored, their assets are distributed appropriately, and their loved ones are protected.
And while a financial planner with good estate planning software can handle many of these aspects, there are key legal elements that require the expertise of an estate lawyer.
Estate lawyers (sometimes known as elder law attorneys) are versed in addressing the complex legal needs surrounding estate planning and the management of assets.
Here’s a deeper look at the legal side of estate planning and when an attorney becomes indispensable.
Drafting Documents
From the drafting of wills to the creation of complex trusts, the accuracy and clarity of legal documents are paramount in estate planning.
While some online document drafting software can provide basic templates, these generic types of document preparation might not capture all client data and the nuances of a client’s unique financial and family situation.
A skilled estate lawyer ensures that each document is tailored to the client’s specific needs, eliminating ambiguities and reducing the risk of disputes down the road.
Managing Complex Estates
When an estate involves multiple properties, significant wealth, business ownership, or international assets, legal expertise is crucial.
An estate lawyer can handle the intricacies of transferring business ownership, mitigating estate tax burdens, or navigating international probate laws.
Legal counsel is also often necessary for estates with blended families or situations that may lead to contested inheritance claims.
Law firms with good legal practice management software are ideal for these types of situations and can help streamline these estates so that they are easier for the financial planner to incorporate into the final estate plan.
Compliance with State and Federal Laws
Estate laws vary significantly by state, and discrepancies between state and federal requirements can complicate the estate planning process.
A skilled estate attorney will know how to adhere to a client’s state-specific regulations while aligning with federal laws.
For example, laws governing community property, inheritance taxes, and probate procedures can differ based on location, making local legal expertise essential.
Resolving Disputes and Challenges
Even in the most carefully laid out estate plan, disputes can happen. If a dispute arises over an existing estate plan—such as disagreements among heirs, accusations of undue influence, or challenges to a will’s validity—an estate lawyer becomes critical.
Lawyers can help to mediate conflicts, represent clients in probate court, and ensure the estate plan holds up under legal scrutiny.
Having a client’s document drafting done by an estate attorney from the outset reduces the likelihood of these disputes happening by ensuring the plan is legally sound.
Next Steps: Where Estate Planning Software Fits In
Once a client’s estate documents are drafted and reviewed by an attorney, estate planning can be handed over to a client’s financial planner to manage and oversee the ongoing execution of the plan.
Financial planners play a crucial role in ensuring that the estate plan remains aligned with the client’s financial goals and is updated as their circumstances evolve.
Estate planning software becomes an invaluable tool in this process, allowing financial planners to:
- Track Asset Changes: Keep an accurate client intake record that includes the client’s assets, liabilities, and keep updated on any new acquisitions or sales that might impact their estate plan.
- Facilitate Regular Updates: Life events such as marriage, the birth of a child, or significant financial shifts often require adjustments to estate plans. Software makes it easier to revise and generate updated documents, making task management easier for everyone involved.
- Monitor Beneficiary Designations: Ensure that beneficiary assignments across wills, trusts, and financial accounts remain consistent and up-to-date.
- Provide Insights: Utilize visual tools within the software to help clients understand the distribution of assets and how their financial goals are being achieved.
- Coordinate with Legal Counsel: Seamlessly share updates or revisions with estate attorneys as needed to ensure legal compliance and continuity between the planning and execution stages.
By combining estate planning software with the expertise of both financial planners and attorneys, clients benefit from a streamlined, well-organized approach to managing their legacies.
Financial planners ensure that the plan is implemented effectively and evolves alongside the client’s life, creating a proactive strategy that provides long-term stability and peace of mind.
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Achieve Estate Planning Success with Holistiplan
Holistiplan is tax and estate planning software that gives financial planners a significant role in a client’s estate planning process.
By combining advanced tools with personalized strategies, Holistiplan streamlines the creation and management of estate plans, ensuring assets are distributed according to the client’s wishes.
Together, financial planners and estate attorneys provide a balanced approach that ensures every estate plan is both efficient and legally sound.
With Holistiplan, you can strengthen client communications and relationships, address legacy needs, and offer comprehensive estate planning solutions trusted by over 8,000 financial professionals.
Reach out today and see why Holistiplan is the choice for tax and estate planning success!
