Meridian Blog

Why a Financial Advisor Is Essential Throughout the Estate Planning Life Cycle

Every year, at least one of the decorative wreaths on Meridian’s doors gets graced with a bird’s nest, then mini speckled eggs, and finally (and hopefully) the tiniest of baby birds. It’s such a gift to see the miracle of life right before our eyes. I particularly have a soft spot for the birds and it’s always a bittersweet moment to see the babies finally fly off and leave the nest.

Watching this cycle got me thinking about the role we as advisors at Meridian play in many aspects of our clients’ lives from beginning to end. This role is not only vital to managing investments and planning for transitions in life, but is just as critical to the estate planning process.

Estate planning can feel morbid, overwhelming, time consuming, or just plain confusing. Which is why most Americans don’t even have an estate plan in place.

Source: https://www.caring.com/resources/wills-survey/

Guiding clients through the complexities of estate planning isn’t just an added service; it’s an essential part of securing your long-term financial well-being. While attorneys draft the legal documents and tax professionals focus on compliance with estate planning tax laws, financial advisors bring a holistic, long-term perspective that ensures your estate plan remains aligned with your overall financial goals.

Much like the financial planning process, estate planning has a life cycle spanning through goal setting, strategizing, implementing and funding, monitoring, and finally execution and transition. Your financial advisor should act as your guide and partner with you during all of these steps.

Stage 1: Discovery and Goal Setting

Estate planning begins with introspection—what do you want your wealth to accomplish, and for whom?

A financial advisor helps you:

• Identify your estate planning goals (e.g., wealth transfer, charitable giving, business succession).
• Evaluate your current financial situation, including assets, liabilities, and income sources.
• Prioritize needs, such as providing for a spouse, protecting a child with special needs, or minimizing taxes.

This foundational stage is crucial because it sets the tone for every estate planning decision that follows. An advisor asks the right questions to uncover values—not just valuations.

Stage 2: Strategy Development

Once your goals are clear, your advisor works with your trusted legal and tax professionals to develop a tailored estate plan that:

• Incorporates wills, trusts, and powers of attorney.
• Addresses tax efficiency (e.g., use of gifting strategies, trusts, and exemptions).
• Protects assets and ensures liquidity for heirs or estate taxes.
• Plans for potential incapacity and long-term care needs.

Your financial advisor should act like a quarter back by playing a key role in orchestrating the appropriate connections, conversations, and strategies with estate planning lawyers, accountants, insurance agents, etc. This collaborative approach ensures your estate plan is not only legally sound but also financially optimized.

Stage 3: Implementation / Funding

At this stage, your financial advisor plays a key role in aligning your financial structure with your estate plan, including:

• Retitling assets to reflect new ownership (e.g., moving assets into a trust).
• Updating beneficiary designations on retirement accounts, life insurance policies, and investment accounts.
• Coordinating with custodians, insurance companies, and institutions to ensure proper execution.

Even the best-drafted estate documents can fail if your financial accounts aren’t structured correctly. For example, trusts will only act as a piece of paper until they are actually funded or assets are titled in the name of the trust. Your advisor helps bridge the gap between planning and execution.

Stage 4: Monitoring and Maintenance

Life doesn’t stand still (says the baby birds) —and neither should your estate plan.

Your financial advisor ensures that your plan remains current by:

• Reviewing your estate plan regularly (typically every 2–3 years).
• Updating the plan after major life events (marriage, divorce, birth of a child, business sale, etc.).
• Rebalancing investments to support trust mandates or legacy goals.
• Keeping you informed of tax law changes that could impact your estate.

This ongoing relationship ensures that your estate plan grows and evolves with your life.

Stage 5: Execution and Transition

Eventually, the estate plan will be activated—either due to incapacity or death. At this critical juncture, your advisor supports the execution process by:

• Assisting trustees, executors, and family members with financial guidance.
• Managing asset distributions, trust administration, and liquidity needs.
• Helping heirs or beneficiaries understand their new financial responsibilities.

An advisor who has worked alongside you for years can be a calming, familiar presence to your loved ones during a difficult time. They ensure that your legacy is carried out exactly as intended.

Why the Advisor’s Role Is Unique

While estate attorneys and accountants play critical roles, a financial advisor is often the only professional with a comprehensive view of your full financial picture—including investment portfolios, retirement plans, insurance, and cash flow needs. Their long-term involvement means they:

• Understand your values and family dynamics.
• Provide continuity across generations.
• Offer proactive, strategic advice over the long term.

In short, your financial advisor isn’t just part of your estate planning team—they’re the one making sure the team plays well together.

Estate planning isn’t a one-time task—it’s a dynamic, ongoing process that evolves alongside your life, goals, and financial landscape. It is requires foresight, strategy, and ongoing management. A financial advisor is a trusted partner through every stage—from the first conversation about legacy to the final transfer of wealth. Their presence ensures your estate plan isn’t just a set of documents, but a living, breathing strategy designed to protect your family, preserve your assets, and fulfill your values.

If you haven’t yet included a financial advisor in your estate planning conversations, now is the time. The right advisor will guide you through the entire life cycle—every step of the way.