Turning the Holidays into Opportunities for Estate Planning Conversations
The holiday season often brings families together, offering a rare chance to engage with loved ones who aren’t frequently seen in person. For financial advisors, this period provides a strategic opportunity to encourage clients to discuss estate planning—a topic that can have a profound impact on familial harmony and financial legacies.
While estate planning conversations can be emotionally challenging, they are essential. A Trust & Will survey reveals that 40% of families experience conflicts during holiday gatherings, with one-third of these disputes resulting in long-term estrangements. Thoughtful planning can help mitigate these risks and preserve relationships.
Here are six actionable strategies to guide advisors in helping clients approach estate planning constructively and effectively:
1. Use Family History to Inspire Future Planning
Estate planning doesn’t have to feel impersonal or intimidating. Drawing on family stories and shared memories can provide a natural way to approach the subject.
Al Faber of Woodson Wealth Management advises using personal anecdotes to introduce the idea. For instance, reflecting on cherished moments with a late relative, such as Uncle Mike’s playful antics, can gently lead into discussions about the importance of planning for the future. These narratives serve as a reminder of the legacies clients want to leave behind.
Encouraging clients to frame estate planning as an extension of their family values and traditions can make the topic less daunting and more meaningful.
2. Act Before It’s Too Late
The probate process can be lengthy and stressful, especially when no will is in place to guide the distribution of assets. Despite its importance, 55% of Americans lack a will, according to LexisNexis. Trust & Will further reports that two-thirds of Americans have no formal estate plan at all.
Advisors should emphasize to clients that verbal agreements or informal promises are insufficient. Legal documents like wills and trusts must comply with state laws and be created while the client has the capacity and intent to act.
Garrett Harper, founder of Harper Financial Strategies, highlights the importance of having these discussions while everyone is available. He stresses the value of explaining the rationale behind decisions to avoid misunderstandings and potential resentment. “We all pass away someday,” Harper says, “so it’s better to face that reality and make the most of the time we have.”
By proactively addressing estate planning during family gatherings, clients can create comprehensive plans that reflect their wishes and foster understanding among heirs.
3. Bring Documentation for Transparency
Transparency is key to reducing uncertainty and conflict. Cary Bazan, a financial advisor with Mutual of Omaha, takes a proactive approach by sharing copies of her estate planning documents with family members.
Advisors can suggest clients follow this example, ensuring that their loved ones have access to relevant documents. Providing tangible materials for review encourages open dialogue and may reveal areas needing adjustment, such as identifying alternative guardians if the original choice is no longer feasible.
This practice fosters trust and demonstrates a commitment to fairness and preparedness.
4. Create a Comfortable Setting
Estate planning discussions don’t have to be formal or tense. Charles Thomas III, founder of Intrepid Eagle Finance, suggests incorporating lighthearted elements, such as sharing a favorite holiday beverage, to ease the conversation.
While humor and warmth can help set a positive tone, advisors should remind clients that serious decisions require clarity of mind. Keeping the discussion casual yet focused allows participants to engage without feeling overwhelmed.
Encourage clients to use the holiday setting as an opportunity for open dialogue, particularly when key individuals like grandparents may wish to express their readiness to step back from roles such as guardianship.
5. Consider Gifting an Estate Plan
For clients looking for meaningful and practical holiday gifts, offering an estate plan can be a unique and impactful choice.
Vinee Mehta, founder of Truly Unbiased, recommends gifting the cost of estate planning services—whether through a digital platform or by covering fees for an estate attorney. Advisors can position this as a thoughtful way for clients to demonstrate care for their loved ones’ financial security.
This approach not only facilitates critical planning but also reinforces the advisor’s value in helping clients achieve long-term peace of mind.
6. Prioritize Estate Planning for All
Surprisingly, even 23% of financial advisors lack an estate plan, according to Trust & Will. If professionals in the field can overlook this critical step, it’s no wonder clients may struggle to prioritize it.
Time constraints are often cited as a barrier, but leveraging technology can streamline the process significantly. Digital tools reduce the time needed to create comprehensive estate plans, transforming what might seem like a daunting task into a manageable one.
Advisors should underscore the long-term benefits of estate planning, including avoiding protracted legal battles and ensuring assets are distributed according to the client’s wishes. The time invested today can save families considerable stress and expense in the future.
Final Thoughts
For financial advisors and RIAs, the holiday season represents a prime opportunity to engage clients in meaningful discussions about estate planning. By approaching these conversations with empathy, creativity, and practical guidance, advisors can help clients create plans that preserve both financial legacies and family bonds.
Encourage your clients to take advantage of the time spent with loved ones to begin—or finalize—their estate planning journey. A well-executed plan is not only a gift to their heirs but also a testament to their care and foresight.
