The responsibility of supporting clients doesn’t always stop with their passing, as a key aspect of our assistance is to help ensure their wishes are honoured and their legacy remains intact.
However, without a carefully crafted will or estate plan, complications can arise at a time when families are already dealing with grief. This can lead to inefficiencies, disputes, or even legal challenges.
Unfortunately, this is not an uncommon issue. The Guardian reports that around 10,000 people challenge wills each year, and the trend appears to be growing.
By working together, financial planners and solicitors can play an important role in helping to reduce the chance of challenges and disputes, and to protect the client’s wishes.
Read on to find out four ways our sectors can work together to ensure client’s wills remain unchallenged.
1. Keep key documents accurate and up to date
The foundation of any estate plan lies in the documents that outline a client’s intentions. This includes:
- Wills
- Letters of intent or wishes
- Beneficiary nominations.
These documents should be updated alongside a client’s evolving life circumstances – such as marriage, divorce, or the death of a loved one – or around every five years.
Financial planners can help clients ensure all their assets are accounted for and confirm that their designated beneficiaries align with their current wishes. They can also work with clients to help them design their estate plan to protect their exposure to Inheritance Tax (IHT).
Meanwhile, solicitors ensure all documentation is legally compliant and clear to reduce the risk of future disputes. They also draft and update wills and other documents to accurately reflect the client’s intentions.
2. Set up trusts
Trusts can be effective for protecting wealth from IHT and controlling how it is passed on.
They can delay the distribution of assets until beneficiaries meet certain conditions, such as reaching adulthood or starting university. There are several types of trust, and they often offer tax advantages as well as protection from legal challenges.
Financial planners can help clients choose the right type of trust and advise on how it aligns with their broader estate planning goals. They can also play a key role in helping beneficiaries understand how to responsibly manage the assets once the trust becomes active.
Solicitors draft the trust deed, advise on appointing trustees, and help ensure the arrangement is legally sound. They can also help prepare letters of wishes that provide additional context to trustees and beneficiaries.
3. Confirm mental capacity
Higher life expectancy has led to a rise in conditions like dementia, which has made mental capacity a growing concern in will disputes.
Disagreements can arise when someone questions whether the individual was capable of making informed decisions at the time they signed their will.
Financial planners who have long-term relationships with clients are often in a good position to notice early signs of cognitive decline. Encouraging appropriate action can help preserve the client’s voice even if their capacity later diminishes. This might include updating their wills or registering a Lasting Power of Attorney (LPA).
Solicitors can formally note the client’s mental state when drafting key documents and, if necessary, seek medical evidence to strengthen the integrity of the will or LPA.
4. Flag potential areas of conflict and mediate
Identifying potential areas of conflict like unequal asset division, blended families, or estranged relatives can significantly reduce the chances of disputes further down the line. By being aware of these risks, clients can prepare for them in advance to help protect their wishes and intended beneficiaries.
Financial planners can help clients think through the potential consequences of their decisions and suggest strategies for open, transparent communication. In some cases, this might include facilitating family conversations to explain the rationale behind certain choices.
Solicitors can also offer mediation and ensure clear documentation and records are made of any discussions. They can also help draft supporting materials to help explain or defend the will if it’s later contested.
Get in touch
By working together, our sectors can help clients create watertight estate plans, offering them both peace of mind and a legacy that’s likely to endure.
To find out more about how financial planners and solicitors can work together for the benefit of our clients, get in touch.
Email info@blueskyifas.co.uk or call us on 0118 987 6655.
Please note
This article is for general information only and does not constitute advice. The information is aimed at retail clients only.
All information is correct at the time of writing and is subject to change in the future.
Please do not act based on anything you might read in this article. All contents are based on our understanding of HMRC legislation, which is subject to change.
The Financial Conduct Authority does not regulate estate planning, cashflow planning, tax planning, trusts, Lasting Powers of Attorney, or will writing.
