QUESTIONS EVERY FINANCIAL ADVISOR SHOULD ASK HIS OR HER CLIENTS
Financial advisors must know their clients’ full financial picture in order to create a comprehensive wealth building and management plan, but some clients may not associate estate planning and trusts with information they should share with their financial advisor. It’s up to the financial advisor to ask the following questions:
- Do you have a will?
- Does the will have appropriate tax planning strategies?
- Does your estate plan adequately provide for the unique care needed for your family?
- Does your will set up a testamentary trust?
- Who is named trustee to manage those assets?
- Are you currently the beneficiary of a trust?
- Is the trust performing as well as the rest of your portfolio?
- Did you know it is possible to separate the investment function from the trust administration function?
- Did you know it is very simple to move a trust to a trustee that will work with all of your key advisors?
If the advisor determines that a corporate trustee is named in a client's will, it would be a good opportunity to educate the client that after his or her death the asset management of the trust assets will likely shift to the corporate trustee. In many cases, the client may not have thought of the ramifications of naming a corporate trustee that provides asset management services.
If the advisor determines that his or her client is the beneficiary of an existing trust, it should be noted that it is usually neither difficult nor expensive to move the trust to an independent trustee like Cumberland Trust. Upon the appointment of Cumberland Trust, the financial advisor can comprehensively manage the client's trust assets along with the client's other assets.