UP CLOSE / TOP OF THE TOP 50
THE
ONE PERSON ADVISORS CAN’T AFFORD TO IGNORE
Advisors quite understandably focus on maximizing the client’s quality of life. But make no mistake, writes Mark O’Farrell, president of the Canadian Institute of Certified Executor Advisors, part of the job is guiding what happens next Regardless of what you call them – gatekeeper, decision-maker, person of influence or whatever – we all know there are key people in our business we can’t afford to ignore. They can make or break the deal, depending on whether we engage early and build relationships or make the crucial mistake of ignoring them at our peril. We know all this, but an astounding number of us continue to totally miss the one key person we can’t afford to ignore: the executor. Advisors know who their future testators will be, but how many can name their future executors? Executors (executrixes) are the most-trusted family members and the one person who can influence both your testator clients as well as the heirs of their estate. Alternatively, if your client will one day be an executor, they may be the conduit to new, future testator clients. Executors are important to our business and failure to engage early and build relationships will be costly. In fact, Investor Economics reports that 98 per cent of heirs do not intend to leave assets with their parent’s advisors. We ignore executors at our peril. The good news is it’s not too late and there’s plenty that can be done. Not only will future testator clients need help with executor issues, their executor children will need all kinds of help. According to a BMO Leger poll, 26 per cent of executors report having legal issues, 31 per cent have emotional issues and almost half, 47 per cent, are having administrative complications. Advisors who broaden their
knowledge and offer credible value will have tremendous prospects over the next 20 years, the period in which Step Canada has estimated 1.5 trillion dollars will transfer to the next generation. Advisors wanting to increase their involvement working with executors should look at opportunities from three vantage points: 1. The testator is your client 2. The executor is your client 3. Neither is a client … yet First of all, in any of these situations, advisors should update their skills and knowledge base regarding executor’s roles, risks and responsibilities, in order to be credible and add tangible value. For example, consider acquiring a designation specifically focused on building the requisite skill set. If the testator is your client, start by asking about their will and when it was last updated. Leave-A-Legacy estimates up to 70 per cent of Canadians don’t have a valid and upto-date will, and many people don’t understand the events that can outdate or even invalidate an existing will, such as re-marriage. If there’s no will, there won’t be an executor. The relevant provincial court will appoint someone to manage the estate. Next, asking about their executors is like asking about their family. In fact, polls by BMO and RBC tell us 98 per cent of Canadians aged 45 and up will name a family member as their executor. Some
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