The Advisor List: A Powerful Tool for Client Care and Business Growth
Financial and legal planning often emphasize complex strategies that clients can use to manage
their affairs. However, what about the simple, practical tools that can make a difference in our
clients' lives?
One such tool is the advisor list, a centralized document of all the key players in a client's life.
Having this information available in a single place and in an easily shareable format can help
ensure smooth and efficient management of the client's affairs, whether it is a temporary
situation or their ultimate passing. An advisor list can also be a valuable add-on product or
service that strengthens client relationships and uncovers new business opportunities between
advisors.
Why Clients Need an Advisor List
Lists are a powerful organizational tool. Neuroscience research demonstrates that the simple
act of writing things down can help manage anxiety, improve memory, and boost our ability to
focus.1 List-making can also help clarify our thinking, prioritize what is important, spark
creativity, and motivate us to take action.2
When a client faces a health crisis or passes away, their loved ones are left to navigate a maze
of financial accounts, legal documents, and critical decisions. This is where an advisor list is
invaluable. Having a centralized repository of who's who in the client's personal and
professional lives can save the family time and money when managing and winding down their
affairs.
In addition to the estate planning scenarios of incapacity and death, there are also situations in
which a client may need ready access to an advisor list. For example, if a client must travel
unexpectedly, gets caught in a natural disaster, faces a legal dispute, loses their smartphone or
internet access, or is forced to deal with a family crisis, they might need to reach out to people
on the list who can act on their behalf or otherwise provide assistance.
What to Include on an Advisor List
While clients may have important documents filed away with their advisors' names on them,
they might be scattered and difficult to locate in a time of need. A centralized list is more
efficient and accessible.
This list should include financial, legal, and medical professionals; close friends and trusted
family members; agents under powers of attorney; and the client's executor and trustees.
For each contact, provide the following information:
- Full name
- Area of expertise or relationship to client (e.g., long-term care insurance agent, son, etc.)
- Contact Information (phone number, email address, mailing address)
- Account or policy numbers for any assets that are under a professional's management
(where applicable)
- Any authority that has been granted to the person (agent under a power of attorney and, if
so, the type(s) of power granted, such as financial, medical, general, or springing)
Some financial institutions may have forms that must be completed if the client wants to name
someone to manage an asset on their behalf. Although a financial power of attorney drafted by
an attorney would likely cover this specific asset, sometimes the financial institution's form will
be more easily accepted. Ideally, clients should have both prepared and ensure that they have
executed any other necessary authorizing documents. A client filling out an institution's form
also needs to ensure that the person they are naming to act on their behalf matches the rest of
their estate plan, if that is their wish. If you do not already have a financial power of attorney on
file for your client or a power of attorney document specific to their institution, this may be an
area to address with your client soon.
Here are some other ways to engage with clients regarding advisor lists:
- Stress the importance of keeping the list updated. Life changes and advisors change.
Check that the list is accurate and up to date during your regularly scheduled client
meetings or schedule a time to review the list.
- Provide tips on storage and access. The list needs to make it into the right hands when it
is needed most. Suggest a secure, centralized location for the advisor list, such as an
encrypted digital file, and ways to share access with advisors and trusted decision-makers.
Clients may also want to include a copy of the list with other important documents, such as
their estate plan, so that designated individuals such as their executor or trustee can refer to
it.
- Highlight the benefits for the client and their family. The advisor list can benefit the client
now and their family later. Talk about how the list fits into their planning goals of increasing
peace of mind, reducing stress during difficult times, and potentially avoiding costly mistakes
or delays. Give examples that relate to concerns the client has expressed.
- Make a template or checklist. Offer a resource to help clients create their advisor list. This
can be part of your new client onboarding process or a complimentary service for existing
clients.
Finding Opportunities in Planning Gaps
The advisor list is an underutilized aspect of financial and estate planning that can pay
dividends for clients and advisors alike.
Clients may assume that their loved ones know whom to contact or that this information is
readily available. They also may not view making an advisor list as a necessary or urgent task
compared with bigger actions such as drafting a will, making investments, or completing their
taxes. As advisors, we may also fail to stress the practical importance of simple organizational
tools such as an advisor list.
This list is not just about names and numbers. It gives clients another way to prepare for the
future and provides a resource for their loved ones to navigate challenging times.
List-making is a way to brainstorm and visualize the big picture. The process of creating the list
may reveal gaps in the client's financial or legal plan, leading to opportunities for you to offer
additional services and foster collaboration with fellow professionals on the list.
To discuss cross-selling and value-add ideas involving client advisor lists, schedule a time to
talk with us.
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.
