Announcing our SOC2 Type 2 Compliance.
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Around the Thanksgiving Table: How Financial Advisors Can Help Clients Start the Estate Planning Conversation

As Thanksgiving approaches, families gather together to reflect, share memories, and appreciate one another. While the holiday is often focused on gratitude, it also presents a unique opportunity to introduce important conversations, like estate planning. For financial advisors working with clients and their families, this time of year can offer an ideal moment to guide clients toward having these crucial discussions with loved ones. Here’s how to approach estate planning in a way that fosters understanding, openness, and long-term planning.

Create a Comfortable Setting for Conversations

The Thanksgiving holiday provides a natural, relaxed environment for estate planning discussions. Financial advisors can help clients understand how to bring up the topic gently, perhaps during quieter moments when families are engaged in sharing memories. By emphasizing that it’s about preparing for the future rather than focusing on the daunting aspects of death, clients can initiate conversations that feel natural and empowering rather than uncomfortable or rushed.

Position Estate Planning as a Family Benefit

Rather than framing estate planning as a task, encourage clients to highlight its value as a tool for peace of mind and family unity. By planning ahead, families can ensure that assets are distributed according to their wishes and that loved ones are cared for. For financial advisors, helping clients position estate planning in this light can turn what may seem like an intimidating subject into one that feels proactive, supportive, and considerate of family members’ needs.

Foster a Sense of Togetherness in Planning

Estate planning is more than legal documents—it’s about preserving family legacies and strengthening connections. Financial advisors can guide clients in thinking about how their estate plan will protect both their financial assets and the family bonds they’ve worked to nurture. By encouraging clients to view the process as a shared family goal, financial advisors can make estate planning feel like a collaborative endeavor that benefits everyone involved.

Lead with Empathy and Understanding

Acknowledge that estate planning can stir up complex emotions. Each family member may have different feelings about aging, legacy, and wealth distribution. Financial advisors can assist their clients in leading these discussions with empathy, ensuring all voices are heard and respected. This approach will foster an atmosphere of mutual understanding, making the conversation about estate planning less intimidating and more about ensuring that everyone feels comfortable and valued.

Use Personal Stories to Encourage Reflection

Thanksgiving is a time of reflection, which provides an opportunity for financial advisors to encourage clients to share personal stories about their family’s legacy and what they hope to pass down. By sharing stories of personal experiences, clients can see estate planning as a continuation of their family narrative, making the conversation more relatable and heartfelt.

Keep the Dialogue Open and Ongoing

While Thanksgiving may be the perfect opportunity to start the conversation, estate planning is an ongoing process. Encourage clients to view this as just the beginning of a broader conversation with their families, one that can continue beyond the holiday season. Financial advisors can position themselves as a long-term partner in these conversations, offering guidance and tools to help clients revisit and refine their plans as circumstances change.

Conclusion

By guiding clients to approach estate planning conversations with their families during Thanksgiving, financial advisors can help their clients prepare for the future with a sense of peace and purpose. The goal isn’t to rush the process but to initiate an ongoing dialogue that ensures that family legacies are protected, and the right decisions are made for future generations. With the right approach, estate planning can be a meaningful and empowering conversation, benefiting both families and the advisors that help them navigate these important decisions.

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Learning While Doing Estate Planning: How our focus on smart, “just-in-time” estate education makes the big difference

 

Video Transcript:

In the hyper-competitive financial services landscape, institutions strive to uncover new ways to offer more value, and deepen customer relationships. Digital estate planning is a easily rendered offering which does both – increase client engagement and enhance loyalty.

Comprehensive Estate Planning Education

The OneDigitalTrust platform includes comprehensive estate education tools, designed to enrich user-understanding of key topics. This empowers them to navigate important legal and financial decisions with confidence, enhancing their overall financial literacy. The platform includes smart capabilities which uncover client-specific needs and serve the Advisor with most relevant, just-in-time education. This positions Advisors as comprehensive financial partners, offering personalized, and timely estate planning education and information.

Just-In-Time Educational Capabilities

At its core, OneDigitalTrust has powerful built-in, just in time, educational capabilities to keep both advisors and users informed through the estate planning journey. We believe, integrating “Smart estate education” into the platform helps advisors and institutions foster deeper engagement, build lasting relationships, to effectively drive both, growth and retention.

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October is National Estate Planning Month — Why Financial Institutions and Advisors should uncover added-value in serving members and customers

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.

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The Power of Branding for Financial Advisors: Standing Out in a Crowded Market

In today’s competitive financial services landscape, branding is more crucial than ever for financial advisors. As Sheri Fitts, a prominent figure in the industry, aptly puts it, “You have a brand whether you are intentional about it or not.” But what exactly is a brand, and why is it so important for financial advisors?

Why is a Brand Important?

Your brand is more than just what you do or how well you do it—it’s the essence of who you are, how you want to be perceived, and the values you represent. In an era of commoditization and consolidation, a strong brand is often the key differentiator that sets you apart from the competition.

Lessons from Iconic Brands

Consider the world’s most valuable brands like Apple, Google, and Amazon. While financial advisors may not aspire to reach such global recognition, the principles behind their branding success can be applied on a smaller scale. The goal is to create a brand that resonates with your target audience and stands out in your local market.

For financial advisors, branding operates on multiple levels:

  1. Your organization (if you’re part of one)
  2. Your colleagues and associates
  3. Your personal brand

Building a strong personal brand is about consistently demonstrating your expertise and commitment to your clients’ financial futures. By offering comprehensive solutions like estate planning through your own branded portal, you reinforce the value you bring to your clients. Every service you provide and every interaction you have helps shape a well-rounded and trusted brand image.

Building Your Brand with OneDigitalTrust

At OneDigitalTrust, we understand the critical role branding plays in helping financial advisors stand out. That’s why our platform offers advisors the unique opportunity to brand our financial advisor portal and estate planning tools as their own. This customization allows you to present a powerful suite of estate planning tools directly under your personal or business brand.

By offering branded estate planning services through our portal, financial advisors can significantly elevate their value proposition. Instead of being seen solely as a financial advisor, your clients will now recognize you as a trusted advisor who manages all aspects of their financial well-being, including estate planning.This deepens client relationships and solidifies your brand as an all-encompassing financial solution provider.

How Branding with OneDigitalTrust Differentiates You

In a crowded marketplace, differentiation is key. Financial advisors who offer branded estate planning services can position themselves as forward-thinking and client-focused. Through the OneDigitalTrust platform, you can seamlessly integrate estate planning into your existing services, reinforcing your brand as an innovator who cares for your clients’ entire financial future—including their estate.

Strengthening Client Loyalty and Growing Referrals

A strong brand creates lasting impressions, not just by delivering excellent services, but by how it makes clients feel. Advisors who use branded estate planning services not only provide more value but are also seen as thought leaders who are ahead of the curve. This builds trust, increases loyalty, and generates word-of-mouth referrals.

As more clients seek integrated financial and estate planning solutions, offering these services under your own brand can also open up new revenue streams without adding significant workload. It’s a simple yet powerful way to expand your practice.

Taking Control of Your Brand

At the end of the day, your brand is what will set you apart in a highly competitive field. By intentionally building and controlling your brand, you can secure stronger client relationships, more referrals, and a more resilient practice. Through OneDigitalTrust’s platform, you can ensure your brand isn’t just known for financial advice—it’s known for comprehensive, personalized financial solutions.

So, the question isn’t whether you have a brand—you do. The real question is: are you leveraging the full potential of your brand? Let us help you strengthen your brand today with our customizable, advisor-branded estate planning platform.

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The Power of Pet Trusts in Estate Planning

In today’s world, pets are more than just animals – they’re beloved family members. As financial advisors and institutions, it’s crucial to recognize the growing importance of pet care in estate planning. Our platform offers a seamless way to create pet trusts, ensuring your clients’ furry friends are cared for even when they can’t be there.

Why Pet Trusts Matter More Than Ever

Pet ownership in the U.S. has surged, with approximately 70% of households owning a pet, according to a 2023-2024 survey conducted by the American Pet Products Association (APPA). As more families welcome pets into their lives, informal pet care arrangements no longer provide sufficient security. Without a plan, many pets face abandonment, ending up in shelters. In fact, the ASPCA reports that approximately 1 million pets are euthanized each year due to a lack of homes or care.

Legally binding pet trusts provide the peace of mind that pet owners need, knowing their animals will receive proper care according to their wishes. Pet trusts secure financial provisions for everything from daily care to veterinary expenses, and owners can specify detailed instructions to ensure their pets maintain their accustomed level of care. Offering solutions like pet trusts is essential for any comprehensive estate plan to ensure the safety and well-being of pets, preventing them from being left in precarious situations.

Unique Support with ASPCA Pet Care Calculator

What sets our platform apart is the inclusion of the ASPCA’s pet care calculator, which simplifies the process by providing cost estimates for pet care. This feature relieves clients from having to come up with figures on their own, ensuring they allocate the appropriate funds for their pets’ needs. By offering precise estimates, advisors and clients can create more accurate and effective pet trusts.

Why This Feature Is Essential

Integrating pet trust creation into your estate planning services isn’t just a trend—it’s a necessity. With the growing number of pets being considered family members, offering this service demonstrates a commitment to addressing every aspect of your clients’ estate needs. Without this option, your clients may feel their plans are incomplete and seek services elsewhere that accommodate their pets.

Our platform simplifies the pet trust creation process, ensuring that financial advisors can easily offer this critical service. The efficiency of our customizable templates, combined with the ASPCA pet care calculator, means you can add pet trusts to your offerings without significantly increasing your workload.

Unlock New Opportunities

By offering pet trust services, you not only help clients protect their pets but also open new doors for your practice. The growing demand for pet-inclusive estate planning creates new revenue streams, stronger client relationships, and differentiation in a competitive market. Don’t miss the chance to enhance your services with this increasingly necessary feature.

Ready to take your estate planning services to the next level? Contact us today for a demo of our pet trust creation feature – complete with the ASPCA pet care calculator – and offer truly comprehensive estate planning for every family member, furry ones included!

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OneDigitalTrust Is Now SOC 2 Type 2 Compliant

We are excited to announce that OneDigitalTrust has achieved SOC 2 Type 2 Compliance, a key milestone in our commitment to delivering the highest standards of security and data protection for our clients and partners.

This attestation, awarded after a thorough third-party audit, confirms that our platform meets rigorous criteria for safeguarding sensitive information and ensuring compliance with industry best practices. By earning this attestation, we reaffirm our dedication to protecting the data and privacy of the financial institutions, advisors, and their clients who rely on our services.

For our institutional customers, financial advisors and partners, this attestation means you can trust that your data and your clients’ information are protected by industry-leading practices. It reinforces our dedication to providing a secure, reliable platform for your estate planning needs.

Our Motivation for Pursuing SOC 2 Type 2 Compliance

We pursued achieving SOC 2 Type 2 compliance to show our unwavering dedication to safeguarding our clients’ data and upholding the highest standards of security. This attestation is more than just a compliance measure—it’s a powerful testament to the trust and confidence you can place in us. Achieving SOC 2 Type 2 compliance means your data is safeguarded by industry-leading security practices, giving you peace of mind and a competitive advantage in today’s digital landscape.

“The SOC 2 Type 2 attestation, demonstrates our unwavering commitment to the highest levels of security and compliance for our customers,” said Sonny K. Kapoor, CEO and Co-Founder of OneDigitalTrust. “We know that our institutional customers trust us to provide their stakeholders with a market-leading estate & inheritance planning digital platform, and this attestation is a testament of our dedication to their security needs.”

Thank You for Your Trust

This attestation is as much a reflection of our customers and partners’ trust in us as it is of our technical capabilities. As we celebrate this milestone, we look forward to delivering even greater value and peace of mind through our enhanced security infrastructure. For those considering a partnership with us, this attestation demonstrates our commitment to maintaining the highest standards of data protection and system reliability. You can confidently collaborate with us, knowing that your sensitive information is in safe hands.

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Preserving the Life-Legacy for clients and members: The Sentimental Side of Estate Planning

When discussing estate planning with clients and members, the focus often centers on assets, wills, and legal documents. However, the stories, values, and experiences that define their lives are equally important. Our estate planning platform’s Life Stories feature addresses this often-overlooked aspect of legacy planning, allowing your clients and members to capture and express bite-sized versions of key life experiences to share with future generations. 

A Window into Their World

The Life Stories feature enables your clients and members to create short narratives about their most memorable life experiences. But it doesn’t stop there. They can enrich these stories with audio, video, and images, bringing their memories to life in vivid detail. Your clients and members can share amazing memories such as:

  • The story of how they met their spouse, complete with a recording of their favorite song
  • A recounting of their proudest achievement, accompanied by photos of the event
  • The history behind a family heirloom, showcased in a video with a detailed explanation of its significance

These multimedia stories create a rich, immersive experience for their loved ones, allowing them to connect with these memories on a deeper level.

Why Sentimentality Matters in Estate Planning

In traditional estate planning, sentimentality is often overlooked, yet it’s this emotional connection that truly resonates with heirs. Encouraging the expression of sentimentality is essential because these stories, values, and emotions transform an estate plan from just a set of legal documents into a cherished legacy. When individuals preserve these priceless memories, they’re not just protecting their history—they’re strengthening emotional bonds. As a financial advisor or institution, offering this opportunity sets you apart, demonstrating a deep commitment to the emotional and financial well-being of those you serve. This deeper connection enhances your service, strengthening relationships and bolstering your brand’s reputation.

A Digital Altar for Immortalizing Memories

The OneDigitalTrust platform is uniquely equipped to help achieve this sentimentality through an integrated feature that serves as a digital altar—a memorial where memories are immortalized. It’s more than just a repository for stories; it’s a sacred space where legacies live on, accessible to future generations. This exclusive capability transforms estate planning into a deeply personal experience for your clients and members, ensuring that stories, values, and emotions are preserved in a meaningful and lasting way.

Beyond Assets: The Value of Values

While financial assets are undoubtedly crucial, the true essence of estate planning lies in preserving and transmitting values, wisdom, and life lessons. The Life Stories feature helps clients and members to:

  1. Provide context: Stories can explain the reasoning behind certain financial decisions or bequests, helping heirs understand these choices.
  2. Share wisdom: Life advice, family traditions, or personal philosophies that have guided someone can be passed down.
  3. Preserve family history: Anecdotes about ancestors or family lore that might otherwise be lost to time can be recorded.
  4. Express love and appreciation: Messages can be left for loved ones, sharing feelings and the impact these individuals have had.
  5. Inspire future generations: Stories of perseverance, achievement, or personal growth can motivate and guide descendants.

Sentiments Enrich Estate Planning

While the traditional elements of estate planning remain vital, the sentimental aspect should not be underestimated. Personal stories are the threads that weave together the tapestry of a client’s life, and sharing them is perhaps the most precious legacy they can leave behind.

The Life Stories feature on the OneDigitalTrust platform makes it easy for your clients and members to capture, enrich, and share these invaluable memories, ensuring that their values, experiences, and wisdom live on for generations. By offering this unique, integrated service, your firm not only elevates its offerings but also strengthens client relationships, positioning you as a leader in comprehensive and compassionate estate planning.

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National Make-A-Will Month: Dispelling Myths and Strengthening Client Relationships

For financial advisors and financial institutions, National Make-A-Will Month offers a unique opportunity to deepen client and member relationships, provide valuable guidance, and enhance your brand by incorporating estate planning into your services. With our Financial Advisor portal, you can easily guide clients through the estate planning process, helping them create or update their Wills. This not only strengthens your relationships but also positions you as a comprehensive financial advisor. With 68% of Americans without a Will, this month serves as a reminder to your clients and members to take action.

Myth: Only the Wealthy Need Estate Plans

Reality: Estate planning is essential for clients and members at all income levels. Advising clients and members to protect their assets, no matter the size, ensures their wishes are honored and legal complications are minimized.

Myth: Estate Planning Is a One-Time Event

Reality: Clients and members often think estate planning is a once-and-done task. In reality, it requires ongoing review and updates as life circumstances change, such as marriage, divorce, or the acquisition of new assets, etc.

Myth: Estate Planning Has to Be Expensive

Reality: With the OneDigitalTrust platform, we offer comprehensive estate planning to your clients and members without the hefty price tag. With transparent costs and a user-friendly interface, we can ensure they will get the best value for their investment.

Myth: Clients Don’t Ask Advisors About Estate Planning

Reality: Research shows that 93% of clients expect estate planning advice from their financial advisor, but only 22% receive it. Also, 66% of children change financial advisors after inheriting wealth. OneDigitalTrust strengthens client relationships and uncovers new opportunities.

As we observe National Make-A-Will Month, it’s the perfect time to reinforce the importance of estate planning to your clients and members. By dispelling myths and offering accessible, effective solutions like the OneDigitalTrust platform, you can help ensure that everyone, regardless of wealth or stage in life, has a plan in place. Let’s use this opportunity to build stronger, more informed relationships with those we serve, and make a meaningful impact on their financial well-being.

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How the financial advisory space has evolved

By Guest Blogger Doug Trott, director & advisor to SaaS and fintech firms

Well, I have been advising wealth management businesses ranging from discount brokerage to private banking for more than three decades now.

One of the most significant changes, indeed, pressures on the financial advisory space has been the advent and success of self-directed, typically discount, brokerage offerings. This may seem like ‘old news,’ but the effects on the industry and investors have been profound and unfolded over decades.

As retail investors became empowered by firms like Schwab and Fidelity, their expectations around value for fees from advisors increased substantially. With the subsequent introduction of the internet, investors could conduct investment research and analysis, compare alternative investments and ideas, and construct portfolios, which had historically been the purview of financial advisors.

Second, the ‘advertised’ price of trades caused many investors to question the cost of investment services delivered by advisors, leading to fee compression and a need to upskill advisors. During this period, mutual funds exploded in popularity and adoption, soon followed by exchange-traded funds.

These developments empowered investors, increased their investment choices, and reduced their investment costs. Advances in technology not only empowered investors but also further empowered advisors. Most recently, the introduction of managed ETF portfolios and then robo-advisors further broadened investor choice and lowered the reference price of investments, amounting to further price pressure on advisors.

As these fundamental changes occurred, advisor business models began to shift, with firms like LPL and other ‘independents’ enabling advisors to effectively rent a leading-edge technology platform and operate as their own business, defining their individual service offering, product ranges and price levels. As a consequence, there has been a steady shift of advisors from employed advisors to independent advisors. At the same time, the industry as a whole sees few firms hiring and training new advisors, so the pool is shrinking as advisors retire.

Where people get their financial advisory services

A positive outcome of the growth of tech platform availability has been the empowerment of credit unions and community banks to provide competitive investment offerings to their members and clients, representing an increase in competition.

We have also witnessed the steady introduction of regulations designed to protect retail investors, many of which have the unintended consequence of burdening firms and advisors and representing significant demands on the time and capacity of advisors to remain compliant. Many would argue that retail clients are better protected but at a cost reflected in the increased expense of investment delivery and the compression of time available for advisors to serve their clients.

Product innovation has accelerated with the gradual adoption of alternative investments and digital assets, changing the complexion of investment portfolios and introducing new demands on advisors.

Lastly, and most recently, the advent of tech solutions that enable ‘hyper-personalization’ has improved the nature of the client relationship, shifting from one-size-fits-all to customized plans and even service models.

To be sure, the financial advice industry has evolved mainly for the betterment of retail investors. Their product choice has broadened. They can choose to be self-directed, advised or both. They can choose from a wide range of low-cost to full-service offerings, and their regulatory protections have increased. Indeed, one could argue they now suffer from too much choice and too much protection.

The confluence of COVID-19

The COVID-19 pandemic was a massive jolt to the industry. Uncertainty after the S&P declined 19.4% at the start of the pandemic had clients asking questions and advisors overwhelmed by those seeking answers to the risk they were now experiencing. To compound matters, face-to-face meetings became extinct quickly, precipitating clients’ adoption of digital communication methods faster than advisors, their firms and regulators had ever contemplated.

After enabling remote work and catching up to client digital expectations, financial advice firms invested in creating fully digital experiences and redesigning their compliance processes to accommodate a new service experience. The financial planning market – long considered a paper-document-heavy, arduous, unpleasant experience where more than half of clients failed to complete what they and their advisor started – was rejuvenated by dozens of innovative new tech firms that launched digital-first applications designed to be client – rather than output – centric.

COVID-19 also got people thinking about mortality and estate planning

The pandemic also increased the propensity of clients to consider end-of-life planning as loved ones faced the risk of prolonged illness or even death.

Lately, executives and individual advisors have become increasingly concerned as they appreciate the import of a looming asset transition among family members. Historical experience has shown that when a client dies, and their estate is administered, the heirs and beneficiaries most typically exit the incumbent advisor relationship, thereby reducing their assets under administration and earnings stream.

Over the last few years, a shift has occurred to discard the notion that this attrition is unavoidable and that there is a payoff to becoming proactive about advice delivery beyond the lifespan of the individual client. Pundits hypothesize that the causes of the attrition are a lack of advisor familiarity with the heirs and beneficiaries, non-involvement with the estate administration, and unintended exclusion of heirs and beneficiaries from the client relationship.

In response, advisors have increasingly sought methods to address these causes, largely to become more fully aware of the estate and its heirs and beneficiaries and be regarded as a resource by those constituents. OneDigitalTrust allows financial advisors to see more deeply into clients’ complete financial assets, including those held elsewhere, and the beneficiaries to begin to develop an ongoing relationship with them far into the future.

Historically, advisors referred their clients with more complex and large potential estates to local attorneys or in-house trust departments in the case of wire houses and banks. They often lost control and visibility of the process and the likely outcomes. These referrals typically represent less than 10% of the clients; the rest of their clients remained in an ambiguous state – attorneys were too costly, and they were considered too small to be served by internal trust departments.

Fintech to the rescue

Enter financial technology innovators to address the question: How do we use technology and scale to generate cost-effective estate documents and advisor visibility for advisors’ unserved clients? Fintechs have invested substantial capital into designing processes and easy-to-use software that simplifies the process, customizes it for all legal jurisdictions, and enables advisors to collaborate with their clients instead of referring them ‘out of house’ all the while safeguarding that there is no “unauthorized practice of law.”

Clients who lack estate plan documents can now build confidence that their plans and wishes are documented and stored in a secure digital vault, that they will be alerted to any changes that require changes, and that their documents will be readily accessible to their estate plan executors, all at a reasonable cost.

Clients with estate documents can benefit from the digital vault and change-required alerts. Advisors gain full visibility into the estate components, deepen their client relationships, become relevant to the future heirs and beneficiaries, enable an efficient periodic estate review, and add a new revenue stream to their business.

The OneDigitalTrust platform’s simple user interface and guidance ensures an individual’s estate is optimized for probate, delivering the most value to the family. And, finally, we pass on so much more than money: Whether it’s your grandad’s life story or your great aunt’s chicken soup recipe, it can be passed down along their the decedent’s possessions with OneDigitalTrust.

By adding estate planning to their services, financial advisors:

  • Gain complete visibility into the financial and non-financial assets of the client
  • Enable relevant engagement with future heirs, beneficiaries, and executors, thereby reducing the prospect of future attrition
  • Add a tech-enabled touchpoint with clients to review the estate plans’ currency and affect any changes required
  • Add a new recurring revenue stream to their practice

In the words of Nike, “Just do it!”

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Empowering Clients by Anticipating the Need for Third-Party Executors in Estate Planning

On July 21, 2023, Grammy award-winning singer Tony Bennett passed away. He was survived by his four children: Danny, Dae, Antonia and Johanna. Upon his death, the Family Trust directed that the “tangible personal property is to be distributed in equal shares” to his four children per the father’s estate plan.

Bennett’s eldest son, Danny, was designated as the trustee for the Family Trust. He stated the value of the estate at slightly less than $7 million.

Quite to the contrary, a lawsuit filed by Antonia and Johanna Bennett alleges that Tony Bennett’s estate is valued at more than $100 million. The sisters are accusing their brother of deliberately hiding the estate’s true value. Generally, in such scenarios, a third-party executor—someone who is neutral and not emotionally invested—could have helped avoid this family conflict.

In many situations, family members may not make the best executors

One of the most critical decisions you’ll make in estate planning is choosing an executor for your will. Estate planning can be incredibly messy, especially when a large sum of money is involved.While many people instinctively select a family member for this role, there are compelling reasons to consider a third-party executor. This choice can be vital for preserving family harmony and ensuring your final wishes are carried out effectively, without bias. By opting for a third-party executor or even a professional executor, your clients’ families should be able to grieve the loss of your loved one without worry that an inheritor is going to make a power play for money.

Understanding the role of the executor

The executor’s role is both crucial and potentially challenging. The responsibilities include:

  • Listing all forms of assets and debts of the estate
  • Ensuring all of the deceased’s debts have been paid
  • Publishing an official notice to creditors
  • Fulfilling legal obligations in meeting the wishes of the deceased
  • Notifying the necessary agencies and administrations, such as the Internal Revenue Service and the Social Security Administration

While these duties can be deferred to an estate attorney, it’ll likely be expensive and reduce the estate’s assets.

The benefits of a professional executor

When a large or complex estate is involved, hiring a professional executor may be a preferred course of action for many reasons.

First, as is evident in the Tony Bennett case, is reducing family conflict. By removing a family member from the decision-making process, you minimize the risk of perceived favoritism or attempts to secure a larger portion of the funds.

Second, excluding a family member from a financial advisory client’s estate plan can create awkward scenarios. Whether done punitively or for other reasons, this becomes especially problematic when another relative acts as executor. A third-party executor has no emotional stake in family dynamics, allowing them to focus solely on efficiently settling the estate and carrying out their duties.

These scenarios are best dealt with by professionals who can neutrally mediate heated and intensely emotional situations. Additionally, professional third-party executors are held to rigorous standards and are usually insured, which mitigates liability and offers a level of expertise that a family member acting as an executor may lack.

Ensure clients understand an executor’s liabilities

According to Alma Banuelos, Head of Trust and Estate Services at City National Bank, “You are 100% liable for all acts and omissions, which means you could personally be sued if something goes wrong, the beneficiaries are unhappy with your decisions and/or you make a mistake that costs the estate money.”

Family members may not have the necessary legal and financial knowledge to handle complex estate matters effectively. Serving as an executor is an immense legal responsibility to put on a loved one who likely has no experience dealing with settling estates.  An external executor can provide the neutrality, expertise, and professionalism needed to navigate complex family dynamics and ensure your wishes are carried out faithfully.

Choosing an executor is a highly personal decision. The OneDigitalTrust platform simplifies this process by allowing you to assign a third-party service as an executor. Additionally, you can specify in your documents that you want your executor to be compensated for their services, ensuring fair treatment for the crucial role they play in settling your estate. When family conflict is a concern, opting for a third-party executor can be a proactive step towards not just protecting your estate but also leaving a positive legacy for your loved ones.

170M Americans need an estate plan. OneDigitalTrust offers a white-label, turnkey estate planning platform with pricing options tailored to the needs of individual credit unions and financial advisors.

Contact us today to learn more!