Missed opportunities for client protection and retention
Clients are increasingly expecting holistic advice and a financial adviser who doesn’ t discuss or fully address estate planning runs the risk of being perceived as transactional.
This can open the door to losing a client in situations when a solicitor gets involved in drafting a will or Power of Attorney( POA), when any perceived gaps in estate planning advice noted may result in a referral to their preferred advisory firm.
Estate planning conversations also build deeper trust. They allow advisers to discuss clients’ personal values, family relationships, and long-term legacy goals.
Not fully engaging with the client and exploring estate planning goals could result in missed opportunities to:
• Deepen the adviser-client relationship.
• Retain assets when wealth transfers to the next generation.
• Collaborate with attorneys, solicitors, and accountants, enhancing professional credibility and referral networks.
Advisers who help coordinate estate planning tend to have stronger, more durable relationships across families and future generations.
Potential legal and compliance risks
Whilst advisers should never draft legal documents or give legal advice, they do have an obligation to ensure that a client’ s financial plan addresses all material risks including estate planning.
If a client suffers financial harm due to an overlooked estate issue, an adviser could face questions from the regulator, or as part of a complaint made by clients themselves or from their family. Some examples could include:
• Neglecting beneficiary reviews: If an adviser manages retirement accounts but never recommends updating beneficiary forms, this could lead to harm by unintended beneficiaries inheriting and as well as potential tax consequences.
• Failing to discuss incapacity planning: A client who becomes incapacitated without a power of attorney could have their financial affairs frozen, directly affecting managed assets and their welfare.
• Lack of coordination with other professionals: Regulators increasingly view advisers as part of a client’ s“ advice ecosystem.” Failing to collaborate on, or at least recommend, a legal and tax review could be seen as a lapse in diligence.
Reputational damage and loss of professional credibility
In today’ s advice landscape, advisers are expected to manage the full spectrum of financial risks. When an estate issue arises after a client’ s death and the family realises it was never discussed, the adviser’ s reputation can suffer.
Word-of-mouth matters, especially in family wealth transitions. A single negative experience can permanently harm the adviser’ s standing and result in loss of future business. Silence on the topic suggests a lack of oversight and duty of care.
Moral and professional responsibility
Ultimately, estate planning is about the process of arranging financial affairs to ensure assets are managed and distributed according to a client’ s wishes after their death, or in the event of losing capacity. Clients trust their financial advisers to help them prepare for the future, protect their families, and use their wealth wisely. Avoiding estate discussions out of discomfort, time pressures, or uncertainty can fall short of that ethical and Consumer Duty obligation.
Addressing a client’ s estate planning objectives is critical, even if it is to simply recommend that client consults a solicitor with regards to setting up a will or POA. Signposting support provides clients with the necessary information and puts them in an informed position to fulfil their goals removing unreasonable barriers. For advisers, this fulfils a critical duty of care.
The bottom line
To be successful in this area, advisers don’ t need to become estate planners, they simply need to ensure the conversation happens, that it is documented, and external support signposted where appropriate.
Find out more
Our expert Tax and Trusts Team is available to help you with any technical queries around this complex area – get in touch at: taxes @ simplybiz. co. uk
APS Legal & Associates, our will writing, estate planning, trusts, Lasting Powers of Attorney, probate, and estate administration services business, is also perfectly placed to help you. Find out more here: www. aps-legal. com
In short, while advisers don’ t need to draft wills or trusts, they should ensure that estate planning is on the agenda. Ignoring it entirely leaves them and their clients exposed.
November 2025 | 5