Does a Client Have a Life After Death?

Advisors who manage family money have an 8 out of 10 change of being replaced by heirs after their client dies. Marketing buffs Russ Alan Prince and Hannah Shaw Grove offer tips to protect your relationship and reduce your chances of losing business. They recently released a report prepared for Rothstein Kass, a noted CPA firm, that reveals startling statistics about the rate heirs fire their parent’s advisors after they pass away. The report is based on surveys completed by the team over the last four years.

Results indicate that investment advisors are twice as likely to be fired by their heirs than a trust company hosting the vehicle funding their inheritance. This data provides compelling evidence that advisors, wealth managers and others who manage client money need to be involved at an earlier stage in their client’s wealth transfer planning process. This should include their client’s trust preparation and ongoing administrative process. The data suggests that by either developing a relationship with a trustee provider or with a directed trust arrangement, and/or starting their own advisor-owned trust company, an advisor can be more certain to hold onto their client’s accounts after the heirs parents pass away.

by Jerry Cooper, Senior Editor, on Thursday, Aug. 9, 2012