It is always a sad day when a financial adviser receives a call that a client has passed away or experienced a tragic event.
Throughout their careers, advisers navigate many types of life events in partnership with their clients and can be a valuable resource for the family. Usually, they have checklists, relationships with estate planning attorneys and tax professionals, and contacts in the community who can assist with managing change.
But what happens if it’s the adviser who dies?
Understanding your adviser’s work will help you understand what to do in this scenario. Those who are licensed as investment adviser representatives (IARs) act on behalf of their clients with a third-party custodian, such as Charles Schwab or Fidelity.
If an unexpected death or disability occurs, your money is safe and will be accessible at the custodian’s institution. The adviser may buy and sell investments for their clients, but the custodian holds the money, tracks the cost basis and generates the statements and tax forms.
As a client of the custodian, you will have access to your investments, statements and tax forms. But without an adviser, your account will not be actively managed. Hopefully, your adviser had a succession plan in place, and the transition to a new adviser whom you find professional, trustworthy, and likable will be simple. If not, you will need to begin the process of finding a new financial adviser.
Searching for an adviser
In your search, consider looking for a financial adviser who is a certified financial planner. This designation is considered the top credential for a financial adviser. To become a CFP, the adviser must complete the following four Es:
— Education: A CFP candidate must complete coursework on financial planning through a registered program and hold a bachelor’s degree or higher from an accredited college or university.
—Exam: Candidates for the CFP certification must pass a rigorous exam, which assesses the candidate’s…
Read the full article here
