Why Estate Planning Matters for Every Client
The common misconception that estate planning is only for the wealthy couldn't be further from the truth. Anyone who owns assets—whether it's a guitar, car, house, or coin collection—needs an estate plan. At its core, estate planning is about ensuring assets reach intended beneficiaries efficiently and according to the owner's wishes.
Understanding the Foundations
Estate planning typically starts with one of two basic foundations:
- A will: A document specifying where assets go, who receives them, and how they're distributed
- A trust: A more sophisticated tool where assets are placed in trust with specific instructions for handling
Starting the Conversation
The key to uncovering estate planning opportunities lies in asking the right questions. Four essential questions to ask both clients and prospects:
- "Tell me about your estate plan" (open-ended approach)
- "When was your estate plan created?"
- "Has it been updated?"
- "Have there been any major changes since the plan was created or last updated?"
Major life changes that often trigger the need for estate planning include:
- Purchasing a home
- Career changes
- Having children
- Receiving inheritances
- Marriage or divorce
The Three-Tier Approach to Estate Planning Resources
1. Simple, Non-Taxable Estates
For estates under $11.5 million (as of 2020) with straightforward circumstances, online resources can be highly effective. HeliosPlans.com offers a cost-effective solution that saves clients thousands compared to traditional attorney fees. The process includes:
- Professional document preparation
- Attorney review
- Notarization requirements
- Complete estate planning documentation
2. Complex, Non-Taxable Estates
For estates under the tax threshold but with complications like:
- Multiple real estate properties
- Blended families
- Special needs considerations
- Complex asset structures
These situations require a local estate planning attorney who is:
- Insurance-friendly
- Asset management-aware
- Respectful of existing client relationships
3. Taxable Estates
For estates over $11.5 million or those likely to reach that threshold, specialized expertise is crucial. These situations require:
- Advanced tax planning specialists
- Estate planning expertise
- Strategies to minimize or eliminate estate tax exposure
- Consideration of both federal (40%) and state-level estate taxes
The Business Case for Estate Planning
Incorporating estate planning into your practice offers multiple benefits:
Client Protection
Ensuring clients' wishes are properly documented and executable provides essential protection for their legacy.
Differentiation
Many financial professionals overlook estate planning, making it a powerful differentiator in the marketplace.
Business Development
After completing estate planning, the natural next step is reviewing:
- Life insurance policies
- Annuity contracts
- Qualified accounts
- Beneficiary designations
This review process often reveals additional planning opportunities and needs for financial products or services.
Moving Forward
The key to success with estate planning is having the right resources for different situations and knowing when to use each one. Whether utilizing online tools for simple estates or bringing in specialized attorneys for complex situations, the goal is to provide comprehensive solutions that protect clients while growing your practice.
Remember: estate planning isn't just about documents—it's about creating opportunities to serve clients more comprehensively while building deeper, more valuable relationships.
