There are a number of situations where the complimentary services of the legal professional and the financial planner can work together to be of real value to the consumer.
More and more we a finding that we can introduce our clients to a solicitor to ensure they structure their affairs in a legally robust manner.
Equally we are receiving many more enquiries from local law firms asking us to provide financial planning advice to their clients.
What follows a some examples of where lawyers and financial planners can interact.
We always recommend that our clients use a solicitor to draw up their wills.
Whilst it is perfectly possible to DIY a will, and there seems to be any number of non-law firms offering this service, our position is always to say to our clients “see a solicitor”.
We say it because we want to ensure that there won’t be a future problem in respect of a will created by the client or will writer.
Whilst some might argue that a solicitor might charge more, we encourage the client to see the value, not just the price, of using the competent professional.
One of our standard ‘fact finding’ questions is “Have you made a lasting power of attorney?”
Often, even if the client has a valid and current will, they will not have engaged with a solicitor to ensure that if ever they are in a position of not being able to make decisions for themselves, they have appointed someone to do so.
When a person goes through the divorce process there are often two key areas where we can assist.
The financial consequences of divorce result in an agreement to share assets and income. Financial planning, (we call it LifeWealth Design) enables our client to know what financial resources they need to achieve their lifetime goals and objectives.
I am not saying that divorce should result in one party having as much as they need for the rest of their lives (and certainly not to the financial detriment of the other party), but a financial plan helps both parties to get a real understanding of the financial consequences of any settlement.
Where one of the assets to be shared is a pension scheme benefit, the specialist financial planner can help the client of the solicitor understand what the pension benefit consists of and what it might provide them with in the future.
Where the benefit has to be transfered to a new pension plan then of course the independent financial adviser is well placed to both select that plan and explain how it should be invested in line with the client’s attitude towards investment risk.
In reciprocation we often find ourselves recommended a divorce solicitor to our clients.
One of the challenges for the trustees of a settlement is to ensure that they invest the trust funds in a suitable fashion.
This can be a real challenge where there are two distinct classes of beneficiary with different needs; for example, those who need income whilst they are alive and those who have a right to capital on the death of the income beneficiaries.
This requires careful investment recommendations to ensure that the trust fund can achieve these distinct objectives. An independent financial adviser can help to structure the investments in a suitable fashion.
Financial planners are not typically qualified solicitors nor are most solicitors qualified financial advisers. Working together ensures that the client gets the best possible advice.
