So, you’ve received a new lead interested in estate planning. You feel they’re a good match for your services, and you’re ready to get started.
This person isn’t likely an expert on estate planning, but you are—which means that, during the first phases of your client-attorney relationship, you’ll have to share a good deal of your knowledge. Cover the following topics and begin a confident, informed estate planning journey.
Start with the benefits
Your lead came to you for a reason. Perhaps they know a bit about the rewards of estate planning, or maybe a friend or family member urged them along. It’s up to you to explain more clearly why having an estate plan is beneficial. Explain that estate plans:
- Protect the financial future of loved ones: Clarify how an estate plan provides a clear guide for how assets should be distributed, making sure that money and property end up in the hands of the desired beneficiaries.
- Mitigate tax burdens: Demonstrate how a smart estate plan, created in conjunction with a professional, can ensure that beneficiaries pay less in inheritance or estate taxes and keep more of the funds left to them.
- Promote philanthropy: Explain how a will can delineate which charities and organizations should receive donations after one’s death.
- Protect minors: While no one wants to imagine not being able to care for their young children, having a plan for this situation is better than the alternative. Highlight how guardian designations ensure that young children receive care from a person the current parent or guardian appoints.
- Express funeral wishes: Remind the client of the importance of detailing wishes for their end-of-life celebration and how they prefer to be laid to rest.
Cover the risks
The benefits of having an estate plan speak volumes, but it’s still a worthwhile exercise to cover the risks of not establishing one with a new client. Estate plans prevent:
- Family conflicts: Leaving family members to resolve what to do with one’s assets can be messy. Reiterate how having a plan mitigates confusion, hard feelings, and legal battles over the distribution of assets.
- Loss of control over medical decisions: Remind clients that an estate plan may be useful during their lifetime. Should the person become incapacitated, they’ll want a plan in place to detail their desires around medical decisions.
- Probate: Explain how, if the client does not have a will, their estate will enter the state’s probate process to determine the distribution of assets.
Explain key concepts
You may find that, when explaining the risks and rewards of estate planning, you run into legal or industry jargon that leaves your client confused. It can be especially useful to explain the following concepts to new clients during onboarding meetings so that everyone is on the same page and you can drive more productive conversions. What’s more, the client will better understand the documents you send to them for review later on.
- Beneficiary
- Codicil
- Healthcare directive
- Irrevocable and revocable
- Joint tenancy
- Pay on death (POD) or Transfer on death (TOD)
- Probate
- Power of attorney (POA)
- Trust/trustor/trustee
- Will
Legal terms can be difficult to explain quickly and clearly, especially from your position as a professional who’s deeply familiar with them. Leverage educational materials from The Estate Planning Institute (TEPI) to enrich and streamline this process. TEPI member attorneys can access an extensive library of video content targeted specifically at laypeople who are learning estate planning terminology and concepts.
Tackle common concerns
Even if a client has taken the first step toward seeking estate planning services, they’ll likely have concerns about the process, starting with, “Do I really need a plan?” Address this and other common apprehensions like:
- The cost-benefit relationship: The estate planning process may imply significant fees, but they far outweigh the risks of not having established a plan. Even if the client doesn’t have extensive assets to distribute after their death, it’s worth highlighting the importance of outlining medical directives, guardianship, and laying to rest preferences.
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- The flexibility of the plan: Remind your client that nothing they establish now is final. Should their wishes change, you’ll be there to help them modify documentation; this is a longstanding client-attorney relationship.
- Tax implications: Soothe the client’s worries around common tax concerns, like the federal, state, and transfer taxes that could be applied to funds left to loved ones. Explaining how these taxes function and what can be done to ensure that beneficiaries receive the most possible. Use a TEPI video to break down these complex tax concerns.
Outline what to expect
You’ve covered key terms and addressed the client’s concerns. Now, it’s time to outline the basics of the estate planning process—that is, what to expect from the client-attorney journey ahead. Here are a few key concepts to cover:
- Creating an assets inventory and list of beneficiaries: Explain that you’ll need information on the client’s assets and trustworthy family members to whom the client would consider leaving money or property. Guide the client through your practice’s specific process for compiling this information, like filling out a questionnaire you’ll send before the next time you meet.
- Document generation: Outline, with the help of TEPI educational videos, the documents you’ll create and the purpose of each. Cover last wills and testaments, revocable living trusts, power of attorney, and healthcare proxies/living wills.
- Roles in the process: Define your and the client’s roles in the estate planning process. It can be helpful to set a timeline with key milestones, allowing the client to envision when they’ll owe you information, signatures, or time for future meetings. Clarify what deliverables you’ll send them (and when you’ll do so) and the extent of your support. Remind the client that you’re available for questions, document changes, and review. Highlight your dedication to creating a plan that meets their needs, expresses their desires, and leverages your expertise to mitigate unsavory legal or taxation outcomes.
Streamline your education and onboarding
Savvy estate planners can bring new clients up to speed in just a couple of meetings. Combine your expert knowledge with ready-made educational tools to make the work go faster.
TEPI offers short, user-friendly videos that attorneys and financial planners can play to educate their clients. These clips are designed to capture your client’s attention and hold it through the delivery of complex information in simple terms.
Plus, when you become a TEPI member, you gain access to a professional network, webinars, and timely legal updates, ensuring you have the most accurate information and sharpest skills for performing your work.