The financial advice profession is becoming increasingly proactive in helping clients with estate planning issues such as wills but it’s been a journey to get here, according to the CEO of New Zealand’s largest provider of online wills.
Belinda Heunis, the CEO of Footprint, told RiskinfoNZ that wills are an essential element within the adviser-client relationship.
“Advisers are trusted partners in their clients’ financial lives helping them secure mortgages, arrange insurance, and grow their investments. But without a will, there’s a significant gap in that protection.”
She says if a client passes away without a will, their family could face unnecessary financial and emotional hardship, with the time and costs of settling the estate increasing by an average of 50%.
As to advisers becoming more proactive, Heunis says three or four years ago, before the recent regulatory changes, most fact-finding processes used by advisers didn’t delve deeply into a client’s broader financial wellbeing, particularly areas like estate planning.
She says the focus was often limited to more immediate needs such as insurance, mortgages, or investments.
…we’re now seeing advisers include estate planning, especially wills, as a standard part of their conversations and fact-finds….
“However, that’s changing. The new regulatory environment has encouraged a more holistic approach, and we’re now seeing advisers include estate planning, especially wills, as a standard part of their conversations and fact-finds.”
Heunis says there’s still work to do “…but the shift toward comprehensive financial advice that supports long-term protection and legacy planning is definitely underway.”
RiskinfoNZ’s latest poll result found 75% of advisers believe less than half of their clients have a will, and Heunis says that aligns with what her firm is seeing across the industry.
“In our experience, a significant portion of clients either don’t have a will or have one that’s outdated. What’s most concerning is that both advisers and clients often under-estimate the impact of not having one. It highlights just how important it is for advisers to make wills a standard part of the financial planning conversation.”
Adding Value to Advisers’ Service Offering
As to what more advisers could be doing, Heunis says while it’s encouraging to see more advisers asking clients whether they have a will, the pressures of a busy workload often mean that guiding clients to take the next step is overlooked.
“In some cases, it becomes a box-ticking exercise rather than a meaningful effort to ensure a will is actually put in place. Advisers can take a more proactive role by connecting clients with trusted organisations that offer easy, accessible estate planning solutions.”
She notes this will also add real value to advisers’ service offering.
“Making sure their clients have a will in place is a key part of providing truly comprehensive financial advice.”