In today’s fast-moving and unpredictable world, clients are dealing with more complexity than ever before. People are living longer, family structures are changing, and property values continue to rise.

Meeting these needs requires joined-up thinking between professionals whose skills complement each other.

When solicitors and financial planners work together, clients benefit from advice that is more coherent and accurate, and professionals can also be more effective and efficient.

Read on to find out why closer collaboration between solicitors and financial planners is the future of holistic support.

Clients face challenges unique to the modern world

The modern world has introduced layers of complexity that make legal and financial matters harder to manage than ever before. Here are just a few of the key challenges clients now face.

Increasing life expectancy

Rising life expectancy is, generally, good news. However, it comes with an increase in the number of people living in poor health.

For example, the Alzheimer’s Society estimates that 1 million people in the UK are currently living with dementia, and this figure is expected to rise to 1.4 million by 2040.

This trend is likely to drive a significant rise in demand for social care and the need to ensure key legal arrangements, such as Lasting Powers of Attorney (LPA), trusts, and wills are in place, making estate planning more important than ever.

Higher divorce rates and more blended families

Data from Statista shows that divorces peaked in the 1990s and have fallen since then, but the numbers compared to previous decades are still considerably higher.

Moreover, a report from the UK Parliament notes that the recent decline in divorces is likely a reflection of fewer marriages being registered. Each year, there are currently around two marriages for every divorce in the UK.

With marriages and familial structures more fluid, blended families are increasingly commonplace. Data from the Office for National Statistics (ONS) reveals that over 1 million children live in step-families, as per the most recent census.

Divorces, remarriages, and blended families can all make financial planning and legal compliance more complex.

Rising property prices

Property prices have risen sharply in recent decades, and homes that were once considered modest can now form a significant portion of an estate.

The properties that older generations bought decades ago have grown in value, and so too has the complexity of passing them on.

Larger estates can intensify family tensions, particularly when wills are unclear, outdated, or perceived as unfair. Disputes over inheritance are far more likely when significant assets are involved.

So, careful and coordinated estate planning is more important than ever.

Financial planners and solicitors are increasingly valuable

As clients’ lives become more complex, the roles of both financial planners and solicitors are becoming more valuable than ever.

Each profession brings a different skillset, but the combination of legal and financial expertise can deliver the strongest outcomes.

Financial planners can help clients:

• Structure their estates to reduce unnecessary tax
• Explore options such as releasing property equity to fund later-life needs
• Use cashflow modelling to show how different decisions affect their future standing, perhaps after divorce or while planning for care.

Solicitors provide the legal assistance that turns plans into reality. They can help clients:

• Write wills
• Create and manage trusts
• Negotiate settlements in divorce or after an inheritance dispute
• Register legal documents, such as Lasting Powers of Attorney or trusts.

As people live longer and face more varied life events, both professions are increasingly essential.

Cross-sector collaboration and coordination can lead to better outcomes

When financial planners and solicitors work in isolation, gaps can appear. But when they collaborate and cross-refer, clients receive joined-up support that protects both their finances and their legal position, now and in the future.

For instance, together we can help clients:

• Write divorce settlements or wills that ensure tax efficiency
• Create estate plans that reduce the likelihood of disputes
• Ensure they have projected their financial outcomes before finalising legal documents, such as trust arrangements or LPAs.

Not only can collaboration lead to better client outcomes, but it can also improve the effectiveness and efficiency of our services.

By making cross-sector referrals, ensuring we have a shared understanding of our clients’ goals and standing, and sharing key documents and updates, we can ensure we deliver the best possible service.

Get in touch

To find out more about how a collaborative approach could benefit our mutual 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 individuals 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.