October is recognized as National Estate Planning Month, a time to emphasize the critical role of estate planning in securing financial futures. For financial institutions and financial advisors, this month serves as a valuable opportunity to reconnect with clients and highlight the importance of taking proactive steps to protect their assets and loved ones. By engaging clients in estate planning conversations, financial institutions and financial advisors can position themselves as essential partners in guiding their clients toward comprehensive financial security.
Estate Planning is Essential
Many people delay or overlook estate planning, often because they find the process overwhelming or mistakenly believe it is only necessary for the wealthy. However, estate planning is important for individuals at every life stage—whether it’s a new parent wanting to designate guardians for their children, someone purchasing their first home, or an entrepreneur considering business succession plans. Estate planning ensures that personal wishes are carried out and assets are distributed efficiently, offering peace of mind to individuals and their families.
National Estate Planning Month provides a simple framework for institutions and financial advisors to raise awareness of this essential service and help clients understand the benefits of having an estate plan in place.
Engaging Clients Through Estate Planning
October offers a natural opportunity for financial institutions and advisors to educate members and clients about estate planning and encourage them to take action. While many think of estate planning as drafting wills or trusts, it encompasses much more—ensuring that assets are protected, healthcare decisions are documented, and powers of attorney are established. By offering guidance, financial institutions and financial advisors can help clients navigate these complexities.
Here are a few ways institutions can leverage this month:
1. Provide Educational Content
Offering educational materials can help demystify estate planning. Financial institutions and financial advisors can share resources such as articles, webinars, or newsletters that outline key estate planning concepts in simple terms. Highlighting areas like healthcare and financial powers of attorney, and how estate planning ties into broader financial goals can encourage clients to take the next step.
2. Tailor Solutions to Different Life Stages
Estate planning needs vary greatly depending on life circumstances. Financial advisors can offer solutions suited to specific milestones, whether it’s helping young families plan for their children’s future, assisting business owners with succession strategies, or advising retirees on tax-efficient wealth transfer. Providing tailored options shows clients that estate planning is relevant at every stage of life.
3. Promote Comprehensive Financial Services
Estate planning often overlaps with other financial services like retirement planning, insurance, and tax strategy. October presents an opportunity to bundle estate planning with these services, offering clients a holistic approach to financial planning. This can help strengthen relationships by showcasing the institution’s ability to address multiple aspects of their financial well-being.
4. Build Client Relationships
By proactively discussing estate planning, financial institutions and financial advisors can create deeper connections with their members and clients. Engaging them in meaningful conversations about their long-term goals and offering practical tools to help them plan can foster trust and loyalty.
The Role of Digital Platforms in Estate Planning
As digital platforms become increasingly pervasive, financial institutions and financial advisors can leverage technology to offer a modern approach to estate planning. Private-label platforms like OneDigitalTrust simplify the estate planning process, making it more accessible and affordable to members and clients. By integrating a digital estate planning platform into digital banking makes the process seamless while also enhancing utilization and usage. As more users create their plans, the brand-loyalty towards the financial institution or Advisor is accentuated which deepens the relationship.
That said, it’s important to recognize that digital estate planning platforms are not a one-size-fits-all solution. While they may work effectively for simple (yet customized) wills and basic revocable trusts designed for probate avoidance, individuals with more complex circumstances (e.g. complicated trust or multiple trusts for high net-worth persons) may be best served by a licensed human attorney because extensive interactive engagement will invariably be required. When digital platforms with complex estate planning options are put in the hands of clients and members, it leads to significant abandonment and defeats the purpose of getting users over the finish line. Ensuring that clients understand when a digital solution is appropriate and when a more hands-on approach is necessary will maintain trust and set realistic expectations.
