How to Find an Estate Planning Financial Adviser

Estate financial planning is not just for the wealthy. Estate planning ensures that whatever assets you have gets passed on to your loved ones. A reliable financial adviser for estate planning means you don't leave anything out. Read on to find an estate planning financial adviser who can help you protect yourself now and your family in the future. 

How Does Estate Planning Work?

Estate financial planning is the process of making arrangements to manage and distribute assets after death. Your estate is everything you own, minus all debts. If you don't think you have an estate, think again. You have an estate if you own a car or a home or have life insurance, investment accounts, a checking account or furniture. While it might not be as grand as you'd imagine an estate, nearly everyone has an estate. 

Estate planning is important because making an advance plan and naming the people or organizations you want to receive your assets will ensure your wishes are respected, facilitate the smooth transfer of funds and minimize costs after your death. 

In addition, an estate plan developed with an estate adviser often contains advance directives for medical care or disability and can include:

• Instructions for your care in case you are incapacitated
• Arrangements for disability insurance or replacement income
• Note any advanced directives for medical care
• Clarify the transfer of your business at retirement or because of incapacity, disability or death
• Provide for loved ones with disabilities without disqualifying them from government benefits
• Name a guardian for minor children
• Provide for loved ones who can be irresponsible with money
• Set up a living trust or update beneficiary designations to help in minimizing taxes, court costs and legal fees

Role of a Financial Adviser in Estate Planning

A financial adviser can help ensure you've covered all possible contingencies in your estate plan and effectively allocated all assets. Estate planning, for financial advisers, is an essential part of building clients' long-term financial health. 

What is a Financial Adviser?

A financial adviser is a professional who should advocate for your best economic interests. They can provide information and guidance on personal finance, investments, taxes and estate planning. A financial adviser oversees a client's finances and helps to prevent crucial financial information and procedures from slipping through the cracks. 

Why Would You Need a Financial Adviser for Estate Planning?

A financial adviser can better address succession planning and help you find strategies to minimize taxes and any estate discrepancies after your death. They will ensure that you have everything in place in case of illness, disability or death. 

You don't need to hire a long-term estate planning financial adviser to build your estate plan. In most cases, sitting with a financial adviser for a few hours to make a clear plan will ensure you've allocated all assets and simplified distribution for your heirs. 

What Can a Financial Adviser Offer?

A financial adviser can offer advice and insight into estate planning. With extensive experience in financial topics, they can help you take advantage of economic opportunities and make provisions to pass on wealth to your children or heirs. In addition to estate planning, a financial adviser can offer advice on investment management, tax planning and strategies to build retirement savings to reach current and future financial goals. 

How to Choose the Right Financial Adviser for Estate Planning

Not every financial adviser has your best interests at heart. Learn what to look for to choose the right financial adviser for estate planning. 

Credentials and Qualifications

Financial advisers can earn one of two qualifications. The first is an Accredited Asset Management Specialist (AAMS). To get the AAMS certification, financial advisers must pass classes and exams to prepare for assessing their clients’ assets and give financial advice. 

Financial advisers can also get the more rigorous Certified Financial Planner (CFP) certification. The CFP requires a minimum of a bachelor's degree from an accredited college, plus at least 6,000 hours of financial advising experience. To become a CFP, they must also pass the CFP exam and pledge to a code of ethics and professional conduct. Don't use financial advisers who don't have at least one of these qualifications.

Experience with Estate Planning

Financial advisers sometimes have one or more specializations. Look for a financial adviser with the AAMS or CFP certification who has experience in estate planning, not just other economic planning areas. 

Client Testimonials

Financial advisers who have helped families will have clients willing to share their positive experiences. You can ask for references and read reviews of past clients to see whether the financial adviser is reliable. You can also ask friends and family members for CFP or AAMS recommendations. 

Areas of Focus in Estate Planning with a Financial Adviser

Estate planning is a broad area. Looking for a financial adviser with estate planning experience in your primary concerns ensures the planning meets your needs. 

Asset Protection

Asset protection means that your assets' full value (or nearly the full value) are passed on to heirs. You can consider tax-advantaged accounts, adding beneficiaries to your bank account or setting up a trust. Asset protection also includes methods to shield assets that would otherwise be susceptible to legal judgments or claims by creditors or former spouses after your death. For family members with difficulty managing finances, you can set up accounts to protect them while protecting their assets. 

Tax Planning

Depending on where you live and the size of your estate, you should consider tax implications for retirement planning. Estate tax planning can reduce potential estate tax liability by reducing the amount of property in the taxable estate or to minimize the valuation of the property. A financial adviser can assess your situation and advise on appropriate actions. 

Retirement Planning

Financial advisers can help you plan for your retirement and ensure that you have sufficient assets to support a comfortable standard of living after retirement. The earlier you speak with a financial adviser about retirement planning, the better. They will advise you on investment and tax-advantaged accounts to grow your wealth. 

Charitable Giving

Charitable giving, both during your lifetime and after death can be a way to make a better world and leave a legacy for good. Financial advisers can help you build charitable giving into your estate plan to maximize donations to the designated organizations.

Beneficiary Designations

Updating beneficiary designations is essential in case of any change in your family situation. You can update beneficiary designations as often as needed to keep your estate plan current. A financial adviser can update your will or living will with current beneficiary designations within the estate plan. 

Common Mistakes to Avoid in Estate Planning

Everyone is busy, and thinking about disability or death isn't a fun topic. But making plans now can help prevent problems down the road. Here are the most common estate planning mistakes to avoid. 

Not Updating Your Estate Plan Regularly

All too often, people make a will and feel like it's done. If you've had children or grandchildren, gotten married or divorced, the whirlwind of life can make you think that updated estate planning isn't a priority. Don't fall into this trap and accidentally forget provisions for your children or distribute newly acquired assets. 

Each time you have a significant change in life — marriage or divorce, births or deaths, purchase of a new asset or opening a new bank account, update your estate plan to include your current wishes. Be sure to also update your living will or advance directive in case of a change in beliefs or preferences around medical care and provisions for your support. 

Not Considering Estate Taxes

Estate taxes can take a sizable chunk out of a large estate. In 2023, the federal estate tax ranges from 18% to 40% but generally only applies to assets over $12.92 million. Have less than that? There are still state estate taxes to consider. There are 17 states with an estate tax. This ranges from 16% on anything over $1 million in Oregon and Massachusetts to 20% on anything over $2.1 million in Washington or 12% on anything over $9.1 million in Connecticut. 

Failing to Review Beneficiary Designations

Failing to review beneficiary designations can lead to family feuds after your passing. Review current designations and ensure you've made provisions for everyone you want to receive a portion of your assets. 

When Should I Start Estate Planning?

It's never too early to start estate planning. The sooner you start, the more time you have to make informed decisions and adjust your plan as your life circumstances change. Estate planning early also gives you more time to take advantage of tax-advantaged individual retirement accounts (IRAs) Roth IRAs to increase retirement savings and grow your estate over time. 

Final Tips on Estate Financial Planning

Think of estate financial planning as one part of your whole financial picture. By making provisions for estate planning with a financial adviser early, you can build your legacy. Estate planning can include retirement planning, tax planning and charitable giving. 
The most important point about estate planning with a financial adviser is that it applies to nearly everyone. Make an estate plan and update it as required so that whatever life brings, you protect yourself and your loved ones.

Frequently Asked Questions