Are Your Clients Prepared for Estate Planning? Here’s What to Know

Some tasks are easier than others when helping clients execute a financial plan. From my experience, estate planning is often the hardest. The possibility of death or disability is not something we think of as imminent, and it can be hard to wrap your head around a worst-case scenario mentally. According to a recent survey by Caring.com, only one in four Americans has a will in place, a decline from 33% of respondents in 2022. Below, I share how I help clients take action to complete their estate plan.

The previously mentioned study states two common reasons for creating an estate plan: retirement (or other age-related milestones) and death. Surprisingly, my clients who are part of the sandwich generation are the largest group without estate documents. I break their estate planning into three simple steps to address this procrastination.

What I’m Telling My Clients

1. Start With the Hard Conversations

I begin by explaining the various documents clients may need, the different roles and responsibilities, and the process of working with an attorney. What often stalls the process is deciding who to designate to fulfill each role and what their desires are for their family.

2. Collaborate With the Attorney and Client

Once a client is ready, we find an attorney who is a good fit. If a client has legal benefits through an employer, I offer to review the list of “in-network” attorneys in their area and provide my suggestions. In other cases, I will introduce them to an estate planning attorney in my network. From there, I can assist in completing the intake form, providing a net worth statement, or helping with any other required data-gathering. I also request to review the drafts before they’re executed and offer to sit in on the review meeting with the attorney.

3. Complete Follow-Up Items and Revisit Regularly

Many clients believe their estate plan is complete once their documents are signed and can miss critical next steps. Attorneys often include instructions for retitling assets and/or updating beneficiaries in accordance with the estate documents. I create a personalized checklist of action items and gather necessary forms to update the accounts I manage. I also strongly recommend incorporating a digital estate plan, letter of instruction, and a long-term care plan. We review their estate plan regularly and update it as their situation changes.

The Bottom Line

A complete estate plan is an essential step in the financial planning process that is often overlooked. Coaching clients through the process and revisiting their estate plan regularly can help them take this crucial step in protecting and caring for their loved ones.