Top 3 Questions to Ask Your Clients About Their Estate Plan
As a trusted advisor, you provide expert guidance to your clients regarding many financial
planning matters. It makes sense that you will come across clients who ask about estate
planning. Even if they do not ask, you can start the conversation by inquiring if they have
thought about what would happen to their money and property if something were to happen to
them.
You do not need to be an expert in estate planning to help a client get started. However, you
should refer them to an attorney after your initial discussion and encourage them to develop a
comprehensive plan that contains the right legal tools to meet their goals. You can lay the
groundwork by explaining how important it is to have a comprehensive estate plan.
Clients who already have an estate planning attorney may only see them once every few years
to review their plans, while others may not have spoken to their estate planning attorney since
they first created their estate plan many years ago. You may see the client more often and know
of changes in their life, investments, and beneficiaries that can greatly affect their estate and
long-term goals. You can remind your clients that they may need to visit their estate planning
attorney due to changes you have discovered or discussed.
1. Does your client currently have a will or trust?
Many people procrastinate about creating a will or trust, often thinking they do not own enough
to need an estate plan or wanting to avoid what they think will be a complex, expensive process.
You can address these misconceptions so they can move forward with protecting themselves
and their loved ones.
If your client has not done an estate plan, remind them that the state has an estate plan for
them - the intestate law for those who die without a will or trust - and that plan may not be what
they want, especially if they have a blended family. There is a hierarchy that the state follows
when determining which family members receive a person's money and property and how much
they will receive. In most cases, these laws do not account for stepchildren or unmarried
partners. If the client wants to determine who will receive their money and property, they need to
proactively plan with the assistance of an experienced estate planning attorney.
If your client already has a will or trust, ask when it was last reviewed or updated. Explain why
estate planning is not a one-and-done project. Changes in family dynamics and life events will
affect their estate plan. Over time, people change their minds, get married or divorced, have
children and grandchildren, and buy and sell investments and property. These changes can
impact who the client chooses as their trusted decision-makers, who they want to receive their
money and property, and how much they want certain people or charities to receive. The client's
estate plan needs to evolve with the client to ensure that their wishes are carried out.
2. Does your client have people they trust to make financial or medical decisions for them in
emergencies?
If your client has not chosen people to make financial and medical decisions for them, if they are
unable to make their own decisions, they need to think about who they would want to do so.
When choosing trusted decision-makers to serve as agents under a financial or medical power
of attorney, your client must consider whether a person has the necessary qualities and skills to
handle the role, whether they are willing to accept the role, and whether they understand their
responsibilities.
If your client has chosen people to serve as decision-makers, it is important that these people
understand your client's wishes should they need to step in and act. Your client can
communicate their wishes by having a conversation with the decision-makers, providing their
wishes in writing, or stating their wishes in a video. Your client should also periodically evaluate
whether the people they have chosen are still the right people for the job.
If your client is unable to make decisions for themselves and they have not properly named
someone to act for them under financial and medical powers of attorney, a judge will have to
decide who will make the financial and medical decisions on the client's behalf. It can be
timeconsuming and costly for family members, as well as emotionally overwhelming, particularly in a
medical emergency. In addition, the judge may appoint someone whom the client would not
have chosen.
3. Does your client have minor children?
If your client has minor children, the client must nominate temporary and permanent guardians
to care for them in the event the client and the other parent are unable to care for them. If the
client has already nominated someone to serve as a guardian, they should review this selection
and make sure the person is still able and willing to care for the children should something
happen. If your client does not nominate someone, the state will choose a person to care for the
children. If no family members are available, it could be a professional guardian who is a
stranger.
Starting your client on their estate planning journey offers them the incredible opportunity to
preserve their legacy and protect their loved ones. Reminding your clients to review their
existing estate plan ensures that their loved ones and legacy will continue to be protected. We
are happy to work with any of your clients who have questions about creating or updating their
estate plans.
MEREDITH | PC
4325 Windsor Centre Trail
Suite 400
Flower Mound Texas 75028
214-513-1013
This newsletter is for informational purposes only and is not intended to be construed as written advice about a Federal tax matter. Readers should consult with their own professional advisors to evaluate or pursue tax, accounting, financial, or legal planning strategies.
You have received this newsletter because I believe you will find its content valuable. Please feel free to Contact Me if you have any questions about this or any matters relating to estate planning.
