Financial Advisor for Estate Planning: Services and Examples

A financial advisor for estate planning provides a future-forward perspective. They can help you build a long-term plan for your financial goals that aligns with the needs of your heirs. From coordinating with attorneys and tax professionals to structuring trust-based wealth transfers, financial advisors can help turn your legacy intentions into actionable strategies.

Want to make sure your estate plan is on track? A financial advisor can help you navigate the complexities of legacy planning.

What Does a Financial Advisor Do for Estate Planning?

Estate attorneys draft legal documents like wills and trusts. Financial advisors, on the other hand, focus on aligning those documents with a client’s full financial picture. This includes managing investments, insurance policies, and retirement accounts. Advisors can also help identify planning gaps that may not be immediately obvious from legal documents alone.

Here are some of the ways a financial advisor can contribute to a comprehensive estate plan:

Minimize estate and income taxes: Advisors help clients plan ahead to reduce future tax exposure. They utilize strategies like lifetime gifting, Roth conversions and charitable giving.
Coordinate beneficiary designations and account titling: They can audit designations on retirement accounts and insurance policies. They also review how accounts and real estate are titled to ensure assets pass according to the client’s wishes.
Structure trusts and wealth transfer plans: Advisors understand how revocable and irrevocable trusts work and can tailor distribution strategies. They can also assist with projecting long-term financial outcomes for heirs.
Integrate charitable giving goals: They can guide clients in using tools like donor-advised funds, charitable trusts and qualified charitable distributions to align philanthropy with tax efficiency.
Plan for Business and Real Estate Succession: A financial advisor can help design strategies for passing on a family business or investment property. This includes gradual share transfers using annual gift exclusions to structuring trusts or family partnerships for smoother transitions.

Let’s take a closer look at each of these items in more detail.

1. Minimizing Taxes Through Strategic Estate Planning

A financial advisor for estate planning can help you minimize future tax liability. They know how to leverage gift tax exclusions, lifetime exemptions, and charitable tools to save you money.

One approach involves gifting assets during life to reduce the size of the taxable estate. Advisors can explain how gift tax exclusions can be used to gradually transfer wealth tax-free. For clients with large estates, lifetime exemption planning can involve strategies like grantor retained annuity trusts (GRATs) or spousal lifetime access trusts (SLATs) that shift future appreciation out of the estate.

Income tax considerations also come into play. Advisors may recommend Roth conversions to move money from tax-deferred accounts into tax-free ones. This could reduce future required minimum distributions (RMDs) and the overall size of the estate. They can also guide clients in harvesting capital gains on highly appreciated assets when it aligns with their broader tax situation.

2. Coordinating Beneficiary Designations and Account Titling

Unlike wills, which must go through probate, many assets can bypass court involvement if properly structured. This is where advisors can add significant value.

Beneficiary designations take priority over a will in most cases. That means if someone updates their will but forgets to change the beneficiary on a retirement account, the account could go to an unintended recipient. Financial advisors help clients audit these designations across IRAs, 401(k)s, annuities, and life insurance policies, especially after major life events like divorce, remarriage or the birth of a child.

Account titling also determines whether an asset is subject to probate. Advisors can educate clients on the differences between joint tenancy, tenants in common, community property and trust ownership.

For example, real estate owned in joint tenancy with right of survivorship will pass directly to the co-owner, regardless of what a will says. A misalignment here could delay distribution or trigger unintended legal battles.

In more complex estates, advisors may recommend retitling assets into a revocable living trust to ensure centralized control and probate avoidance.

3. Trust and Wealth Transfer Planning

A financial advisor for estate planning can help clients understand the differences between revocable and irrevocable trusts, and how each fits within their goals.

Beyond selecting a type of trust, advisors can also assist with the funding process; namely, transferring ownership of assets into the trust.

Trust-based planning is particularly valuable in blended families, high-net-worth households, or when beneficiaries have special needs or poor financial habits. A trust can stagger distributions, restrict access based on life events or assign an independent trustee to act in the best interests of the beneficiaries.

In more advanced planning, advisors may use irrevocable life insurance trusts (ILITs) to remove large insurance policies from the estate or establish grantor trusts to facilitate tax-efficient asset transfers. In these cases, the advisor’s role is to project the long-term outcomes of different strategies and monitor how investment performance or tax law changes might affect the plan.

4. Charitable Giving and Philanthropic Goals

Whether through lifetime giving or legacy gifts, advisors can explain the pros and cons of donor-advised funds, charitable trusts and qualified charitable distributions (QCDs).

Donor-advised funds are a popular tool for clients who want to bunch charitable contributions into one tax year, often in high-income years or right before retirement. An advisor can help clients donate appreciated securities, receive an immediate tax deduction and continue recommending grants to charities over time. This allows for both tax efficiency and long-term charitable engagement.

Charitable remainder trusts (CRTs) offer another option. These allow clients to receive income during their lifetime, with the remainder going to charity after death. A financial advisor models the tax benefits and income flow of a CRT compared to more straightforward bequests. This helps their clients decide which structure best fits their financial goals.

For retirees over age 70½ with IRAs, qualified charitable distributions (QCDs) are a highly effective giving tool. An advisor can help time these distributions to satisfy required minimum distributions (RMDs) while keeping taxable income low. This strategy is especially useful for clients who no longer itemize deductions under current tax law.

5. Family Business and Real Estate Succession Planning

Managing a family business or investment property often involves more than choosing a beneficiary. It also requires planning around management, taxation and liquidity. A financial advisor can help structure these transitions so they have minimal disruptions to the estate. This often includes business valuation, shareholder agreements, and entity restructuring.

Advisors may recommend transferring business shares gradually using the annual gift exclusion or lifetime exemption. This allows the owner to shift control over time while reducing estate tax liability. In cases where multiple heirs are involved, an advisor may propose placing the business into a trust or family limited partnership to maintain operational continuity and manage interpersonal dynamics.

Succession planning also involves preparing the next generation. Advisors can guide family meetings, help document operating procedures, and facilitate mentoring relationships between senior and junior stakeholders.

For investment real estate, advisors evaluate whether it makes sense to keep, sell or exchange properties. They may recommend using a 1031 exchange to defer capital gains taxes or placing properties into an LLC or trust for smoother transfer.

Choosing a Financial Advisor for Estate Planning

Selecting the right financial advisor for estate planning involves more than just verifying credentials. You’ll want to work with someone who sees the big picture. They understand not only investments, but also how legal, tax, and family dynamics intersect in long-term legacy planning. Look for advisors who have experience collaborating with estate attorneys and tax professionals, especially if your estate includes complex assets like businesses, trusts, or out-of-state real estate.

It’s also helpful to seek out fiduciary financial advisors, those legally obligated to act in your best interest. Fee-only planners, particularly those with credentials like Certified Financial Planner (CFP®) or chartered financial consultant (ChFC®), are often well-positioned to offer holistic guidance.

During your initial consultation, ask about their experience with estate plans, trust funding and wealth transfer strategies. A good advisor should be able to walk you through it all. They can explain how they’ll coordinate beneficiary reviews, update titling and manage taxes through the lens of your estate goals.

Bottom Line

Estate planning isn’t a one-time event; it’s an ongoing process that touches nearly every aspect of your financial life. A financial advisor for estate planning helps you leave a legacy on your own terms. Whether you’re just starting or revisiting an older plan, the right advisor can guide you through the technical and emotional aspects of building an estate strategy that works for you.

Tips for Financial Planning

A financial advisor can help you with a large range of your financial lives, from retirement savings to estate planning and more. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
Consider utilizing an estate planning checklist if you want to get started on your long-term planning by yourself.