February 2022 Issue: Avoiding the "Treasure Hunt" - the Financial Advisor's Role-Avoiding the "Treasure Hunt"

Avoiding the "Treasure Hunt" - the Financial Advisor's Role

Pdf Summary

In the article "Avoiding the “treasure hunt”—the financial advisor’s role" by George F. Reilly, the author discusses the importance of estate planning and the role of a financial advisor in ensuring a smooth process for clients and their families. The article begins by highlighting the frustrating and costly nature of the post-disability or post-death "treasure hunt" where family members and professionals are left searching for a person's assets and critical information without their assistance. <br /><br />The author then provides an example of a client named Joe, a widower with adult children who live far away. When Joe is admitted to the hospital after a fall and is unable to communicate, his children are left to search for his legal documents and financial records, not knowing what their father meant when he said he had "taken care of things." The article points out that with the shift to online banking and investing, finding necessary financial statements and records has become more difficult. <br /><br />The article emphasizes the importance of proactive measures such as providing authorized individuals with the authority to access financial information in case of emergency and keeping an organizer document with account information, passwords, and important documents. The author notes that financial advisors can play a crucial role in helping clients prepare for these situations by offering comprehensive services and maintaining updated client files with relevant information about tax preparers, attorneys, retirement accounts, and beneficiary designations.<br /><br />In Joe's case, his children find an annual report from Joe's financial advisor, who had been given the authority to discuss Joe's financial matters with them in case of an emergency. The financial advisor's file also includes information about Joe's tax preparer and attorney, as well as his updated estate planning documents and beneficiary designations. The financial advisor's preparedness and willingness to assist during a critical time enable a smooth transition of information to Joe's children.<br /><br />The article concludes by emphasizing the importance of client service and proactive communication about estate planning and organization. It highlights the financial advisor as the hero of the story, providing the treasure trove of needed information to the client's family when it matters the most.<br /><br />Overall, the article underlines the significance of proper estate planning and the role financial advisors can play in guiding clients through the process and ensuring a seamless transition of information and assets to their loved ones.

Keywords

estate planning

financial advisor

smooth process

treasure hunt

post-disability

post-death

assets

critical information

proactive measures

authorized individuals