Certified Financial Planners

The Certified Financial Planners® Role In Estate Planning

Certified Financial Planners® (CFP®), as part of the estate planning team, are in a position to assist their clients with a wide range of estate planning needs. Ideally, these planners should be involved in the entire process of the clients’ estate planning—from helping them to recognize the need to develop or improve their plans, to helping them select appropriate legal and taxation strategies, helping select documents that best meet their personal situations, and reviewing their planning documents with them so that they understand the plan that they have. CFPs® though not necessarily estate planning experts, have had formal education in estate planning as well as significant experience that can be helpful in developing strategies to achieve estate planning objectives. Our broad knowledge of all financial planning considerations enables us to help keep the estate plan in perspective.

Many clients put off the development of their estate plan. The excuses are numerous, but most often reflect a reluctance to discuss matters pertaining to their own, or an elderly loved one’s eventual death. Financial Planners help their clients realize the serious implications of a lack of estate planning and motivate them to undertake this needed action.

Many individuals have a very narrow view of estate planning, often believing that a will is sufficient. They often overlook many valuable tools, including property ownership alternatives, letters of instruction, powers of attorney, and trusts. CFP® educated planners can help them realize the many elements involved in a comprehensive plan, and how a particular estate planning technique might be beneficial to them and their loved ones. Coordinating estate planning with other areas of financial planning is especially important. For example, Financial Planners can help clients understand how some strategies not only provide benefits in the estate plan, but may also produce income tax savings in the current year. And once an estate plan is put into effect, the CFP® with an ongoing relationship with a client, often helps the client keep that plan current through changing life circumstances.

Some individuals will inherit large estates, or become the beneficiaries of trusts. People who find themselves in this situation often consult CFP® practitioners in regard to the management and disposition of these inheritances. If trusts are involved, the planner can help the client understand what latitude, if any, they may have over the management of the funds, availability of income payments, or payments that can be made from principal for their benefit. Many CFP® practitioners are also often capable investment advisors who can assist clients determine investments that are best suited to meet the needs of the recipient of inheritances.

Effective financial planning considers financial tools, strategies, and coordinates activities in many areas, including investment management, insurance, taxes, cash flow analysis, and foreseeable life changes in order to produce the desired results in planning the distribution of a client’s estate. CFP® practitioners are skilled in helping clients fit all the pieces together leading to effective financial strategies for life and end of life distribution plans.