Do You Need a Financial Advisor for Estate Planning?
When people think about estate planning, they usually think of an attorney drafting a will or trust. So it is fair to ask: do you need a financial advisor for estate planning at all?
The short answer is that an attorney is essential for the legal documents, and a financial advisor may play a different, complementary role. This article explains what each professional does, where the gaps often appear, and how to decide whether bringing an advisor into the process makes sense for you.
What Does Estate Planning Involve?
Estate planning is the process of deciding how your assets will be managed and distributed during your life and after your death, and who will make decisions if you cannot. It typically includes:
Wills that direct how assets pass and name guardians for minor children.
Trusts that can manage assets during life and after death.
Powers of attorney for financial decisions.
Healthcare directives for medical decisions.
Beneficiary designations on retirement accounts and insurance.
Titling of assets, such as joint ownership or transfer on death designations.
Estate Planning Attorney vs. Financial Advisor: Who Does What?
What an estate planning attorney does
An estate planning attorney provides legal advice and drafts the documents. That includes interpreting state law, structuring trusts, and making sure documents are properly signed and valid. Only an attorney can provide legal advice.
What a financial advisor does
A financial advisor focuses on the financial side of the plan. That may include:
Organizing your assets and showing how they are titled.
Projecting how your estate may grow and what it could look like at different points in time.
Reviewing beneficiary designations to make sure they match your plan.
Helping fund trusts by retitling accounts after documents are signed.
Considering tax implications of different strategies alongside your tax professional.
Aligning investments with trust terms and family goals.
What a tax professional does
A tax professional can help with gift and estate tax filings, trust tax returns, and income tax considerations tied to your estate plan.
Where Estate Plans Commonly Break Down
Even well-drafted documents can fall short if the financial details are not handled. Common issues include:
Trusts that were never funded. Assets left outside the trust may not pass the way you intended.
Outdated beneficiary designations that override what your will says.
Account titling that conflicts with the estate plan.
No plan for liquidity, leaving heirs to sell assets quickly to cover taxes or expenses.
Documents that are never reviewed after major life events.
A financial advisor who reviews your accounts regularly may help catch these issues before they become problems.
When a Financial Advisor May Be Especially Helpful
You may benefit from involving an advisor in estate planning if:
You have assets in many accounts or across multiple institutions.
You own a business and need to think about succession.
You are considering trusts for tax, control, or family reasons.
You want to give to family or charity during your lifetime.
You have a blended family or other situations that need careful coordination.
You live in a state with its own estate tax. For example, Illinois has an estate tax with a threshold much lower than the federal exemption.
Questions to Ask an Estate Planning Financial Advisor
"How do you work with estate planning attorneys?"
"Will you help make sure my trust is funded and my beneficiaries are updated?"
"How will my investments be managed inside a trust?"
"How often will we review my estate plan together?"
"How do you consider taxes in estate planning decisions?"
How VestGen Approaches Estate Planning
At VestGen, Estate Planning involves working with estate planning attorneys on wills, trusts, and wealth transfer. Estate and legacy planning focuses on strategies to help preserve and transfer wealth across generations, coordinated with Tax Optimization and Investment Management as part of a comprehensive plan. VestGen Advisors does not offer legal or tax advice.
For more on this topic, read our article on estate planning in Illinois and where a financial advisor fits, or explore our Services page.
Who VestGen Serves and Where
Every financial journey is distinct, and so is our approach. VestGen Wealth Partners offers bespoke wealth management solutions crafted to align with your individual goals and aspirations. We go beyond traditional financial planning to deliver solutions that are as unique as our clients' ambitions.
VestGen serves clients across the nation through many office locations, including Chicago, Glen Ellyn, Schaumburg, Naperville, Oak Brook, South Barrington, St. Charles, and Downers Grove in Illinois, Kirkwood and Kansas City in Missouri, and locations in Texas, New Jersey, Florida, and North Carolina. You can find an advisor near you.
Ready to Start Your Journey?
An estate plan works best when the legal documents and your financial life point in the same direction. If you would like to talk through how your plan fits together, contact VestGen Wealth Partners to schedule a consultation with one of our advisors. Together, we can chart a course toward your financial future.
Frequently Asked Questions
Do I need a financial advisor for estate planning?
Not always, but an advisor can be helpful when you have multiple accounts, a business, trusts, or complex family situations. The advisor focuses on the financial side, while an attorney drafts the legal documents.
Can a financial advisor do estate planning?
A financial advisor can help with the financial aspects, such as organizing assets, reviewing beneficiaries, funding trusts, and aligning investments. Legal documents must be drafted by an attorney.
Who should I see first for estate planning, an attorney or a financial advisor?
Either can be a starting point. Some people meet with an advisor first to organize their financial picture, which can make attorney meetings more efficient. Others start with an attorney and bring in an advisor later.
What does it mean to fund a trust?
Funding a trust means transferring assets into it, such as retitling accounts or real estate in the trust's name. An unfunded trust may not control those assets as intended.
How often should I review my estate plan?
Many people review their estate plan every few years and after major events, such as a marriage, divorce, birth, death, move to another state, or significant change in assets.
Do beneficiary designations override a will?
In many cases, yes. Assets with named beneficiaries, such as retirement accounts and life insurance, generally pass directly to those beneficiaries regardless of what the will says.
This article is for informational and educational purposes only and does not constitute financial, legal, or tax advice. Advisory products and services offered through VestGen Advisors, LLC, a Registered Investment Advisor. Securities offered by Registered Representatives through Private Client Services, Member FINRA/SIPC. Private Client Services and VestGen Advisors, LLC are unaffiliated entities. VestGen Advisors and Private Client Services do not offer legal or tax advice, and information here should not be construed as such. Always consult a legal or tax professional regarding your specific situation. VestGen financial advisors may only conduct business with residents of the states and/or jurisdictions for which they are properly registered. Not all of the investments and services mentioned herein are available in every state. All investing involves risk, including the possible loss of principal. Past performance is not a guarantee of future results, and no strategy can guarantee a particular outcome. Please review VestGen's Form CRS and Form ADV Part 2A for more information.