8 Essentials to Protect Client Assets — and Intentions
Download the 6.20.25 Dynamic Portfolio Perspectives for advisors’ use with clients
By Dynamic’s Asset Management Team
Estate planning is often associated with extreme wealth, but it’s essential for clients at every level. It ensures assets are transferred with clarity and care, reduces confusion, avoids delays and protects families during difficult times.
As an advisor, you have a unique advantage. Unlike attorneys or accountants who may only see part of a client’s financial picture, you understand the full scope. This gives you the opportunity to guide clients and coordinate with their professional team to create better outcomes.
Here are eight essentials of an effective estate plan and why they matter for everyday families just as much as millionaires.
- Establish or Update a Will
The foundation of any estate plan, a will specifies how assets should be distributed and who will care for minor children.
Encourage clients to review their will after major life events such as marriage, divorce, a birth in the family or significant changes in finances. The goal is to ensure their wishes remain accurate and aligned with their overall plan.
Keep in mind state-specific laws on the validity of wills in their traditional forms vs. holographic, i.e., hand-written, wills.
- Use Trusts to Avoid Probate and Provide Structure
Trusts are useful tools for many clients, not just the very wealthy. A revocable trust can help avoid probate and maintain control during the client’s lifetime. An irrevocable trust provides even greater protection from creditors and may reduce estate taxes.
Trusts are especially valuable when privacy, control or ongoing distributions are important. Advisors who understand family dynamics can recommend appropriate trust structures that suit both financial goals and personal circumstances.
- Assign a Power of Attorney
If a client becomes incapacitated, someone must have the legal authority to act on their behalf. Without a durable power of attorney, their family may need to go to court for access to accounts or the ability to manage obligations.
Advisors should help clients designate a trusted person and consider an introduction to ensure both parties understand expectations and responsibilities.
- Create a Health Care Directive
This document, also known as a living will, outlines a client’s medical treatment preferences and appoints a decision-maker if they are unable to make decisions themselves.
The case of Terri Schiavo, which spanned from 1990 to 2005, is a well-known example of what can happen in the absence of a clear directive. A written plan avoids uncertainty and spares loved ones from painful decisions.
- Review Beneficiary Designations
Beneficiary designations take precedence over a client’s will. These apply to retirement accounts, insurance policies and certain bank accounts.
Reviewing designations regularly and after major life events ensures they remain consistent with the broader estate plan and prevent unintended outcomes.
- Minimize Estate Taxes
Even clients with moderate estates can benefit from tax planning. Strategies such as lifetime gifting, Roth conversions, and charitable trusts can help reduce tax liability and maximize what beneficiaries receive.
The current federal estate tax exemption is $13.99 million per individual, or $27.98 million for married couples. If the 2017 tax law sunsets at the end of 2025, that exemption will be cut in half. If you haven’t done so already, advisors should initiate planning conversations now with clients who may be affected.
- Organize Documents and Digital Assets
An estate plan is only effective if it is accessible. Advisors should encourage clients to store documents securely in both physical and digital formats, and to communicate their location to a trusted person.
Advisors should also discuss digital assets. Many clients overlook the importance of organizing login credentials for banking, investments and other online accounts. Password management tools can make transitions smoother and prevent complications.
- Review the Plan Regularly
Estate plans should be updated as life changes. Advisors should revisit these documents with clients every few years or following events such as marriage, divorce, births or financial shifts.
Even without major changes, regular reviews help ensure the plan stays accurate, enforceable and aligned with client goals.
Leaving a Legacy by Intention, Not Accident
Estate planning isn’t just about transferring assets. It’s about making thoughtful decisions today that protect a family’s future, minimize costs, taxes and delays while leaving a lasting legacy that reflects unique values.
Clients don’t need millions to benefit from having a plan, they just need a willingness to think ahead and take action; advisors who make clients aware of this early can create better outcomes generationally for the clients.
Invest with intention.
At Dynamic, we’re here to help you take a flexible, personalized approach to growth investing — and uncover the opportunities that can make all the difference. Let’s talk about how we can support your clients’ success.
For more information, contact Dynamic’s Asset Management team at (877) 257-3840, ext. 4 or assetmanagement@dynamicadvisorsolutions.com.
Disclosures
For advisor use only. This commentary is provided for informational and educational purposes only. The information, analysis and opinions expressed herein reflect our judgment and opinions as of the date of writing and are subject to change at any time without notice. This is not intended to be used as a general guide to investing, or as a source of any specific recommendation, and it makes no implied or expressed recommendations concerning the manner in which clients’ accounts should or would be handled, as appropriate strategies depend on the client’s specific objectives.
This commentary is not intended to constitute legal, tax, securities or investment advice or a recommended course of action in any given situation. Investors should not assume that investments in any security, asset class, sector, market, or strategy discussed herein will be profitable and no representations are made that clients will be able to achieve a certain level of performance, or avoid loss.
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