Financial Advisor

What a financial advisor can do

A financial advisor may help identify and understand investment holdings, explain account characteristics, discuss investment risk, and provide guidance when financial assets require ongoing management or decisions.

An advisor who already worked with the person who died may also be a useful source of information about existing accounts and investment relationships, subject to the institution's requirements for providing information or taking instructions.

Not every financial account belongs to the probate estate

How an account is titled and whether it has a valid beneficiary designation can affect what happens after death. Some assets may pass directly to a beneficiary rather than through the probate estate.

Before making decisions about an account, determine who owns or controls it after death and what documentation the financial institution requires.

Avoid unnecessary investment decisions

An executor or trustee may feel pressure to sell investments, change allocations, or move accounts quickly. Unless action is necessary, it can be helpful to first understand the asset, the fiduciary's authority, the estate's cash needs, and any legal or tax considerations.

Financial, tax, and legal advice are different

A financial advisor can provide investment and financial guidance, but estate decisions often cross professional boundaries. An accountant may need to address tax consequences, while an attorney may need to advise on ownership, fiduciary authority, trust provisions, or beneficiary rights.

Significant financial decisions may therefore benefit from coordination among the estate's professionals.

When a financial advisor can be especially helpful

• The estate or trust holds significant investments or securities.
• Investment accounts require ongoing management during administration.
• The executor or trustee does not understand the assets being held.
• The estate needs liquidity and investments may need to be sold.
• Existing accounts have beneficiary designations or special ownership arrangements.
• Financial decisions need to be coordinated with legal or tax advice.

Quick Reference

• Identify how each financial account is titled.
• Check for beneficiary designations before assuming an account belongs to the estate.
• Understand the investment before making major changes.
• Confirm who has authority to give instructions on the account.
• Coordinate investment decisions with tax and legal professionals when appropriate.
• Keep records of significant financial decisions made during administration.

Helpful Tip

The first financial decision does not always need to be an investment decision. Start by understanding what the asset is, who owns it after death, and who has authority to act.