Whereas property planning has lengthy been an integral a part of the monetary planning course of, most advisors’ roles have traditionally been restricted to figuring out the necessity for paperwork and referring purchasers to attorneys. New applied sciences, nonetheless, are reworking how advisors strategy property planning by permitting them to go deeper—each by enhanced visualization and modeling instruments and, extra lately, by doc preparation platforms that allow purchasers to finish core authorized paperwork inside an advisor-supported surroundings. Kitces Analysis initiatives that by 2026, almost half of advisors will make use of expertise to help their property planning.
Between 2024 and 2026, 1 in 10 advisors are projected to include tech to help property planning for the primary time. As advisors increase their involvement, many face questions on whether or not to cost for these companies – and if that’s the case, construction these charges.
Some corporations could select to not cost, integrating property planning into their current service choices as a value-add to extend shopper loyalty, strengthen multi-generational relationships, or differentiate themselves within the market. For corporations intent on charging, considerations sometimes middle on avoiding the Unauthorized Observe of Regulation (UPL), justifying charges to regulators and purchasers, and uncertainty about how a lot to cost. Every of those considerations, nonetheless, is surmountable. Advisors can typically keep away from UPL by refraining from drafting paperwork or giving dispositive authorized suggestions, and as an alternative concentrate on offering training, modeling, and facilitating client-directed doc creation through third-party instruments. These platforms usually embody built-in guardrails that stop advisors from crossing into authorized recommendation whereas nonetheless delivering significant shopper worth to justify a price.
Advisors who do select to cost for property planning sometimes observe one in all 4 approaches: 1) bundling it into AUM charges; 2) bundling it into current planning charges, 3) including a devoted property planning tier to their price schedules, or 4) charging a flat property planning price. Probably the most applicable pricing technique will depend on whether or not property planning is positioned as a core service for all purchasers or as an non-obligatory providing for a choose group. Broad integration usually helps modest, across-the-board will increase in AUM or planning charges, whereas restricted use is healthier aligned with tiered or flat-fee fashions, by which elevated charges apply solely to purchasers utilizing these companies. For advisors unsure about how a lot to cost, benchmarking information is obtainable for every of those pricing constructions.
Crucially, advisors including property planning companies should additionally talk the change successfully to purchasers. When property planning is launched as a value-add inside an current service providing, messaging may be easy and constructive, emphasizing the brand new providing. If property planning is obtainable as a part of a separate tier or standalone price, the tone may be extra invitational, placing the choice within the purchasers’ arms and clarifying that they pay provided that they select to make use of the service. Lastly, for advisors implementing property planning throughout their complete shopper base and elevating charges because of this, a value-centric strategy works greatest, specializing in the extra advantages purchasers will obtain.
In the end, the important thing level is that property planning companies – whether or not conventional state of affairs modeling or technology-supported doc preparation – can present significant worth adequate to justify a price. By figuring out the proper pricing construction and speaking adjustments clearly and empathetically, advisors can ship added worth, guarantee they’re pretty compensated for the extra work concerned, and confidently present these companies inside regulatory boundaries – serving to purchasers construct readability, confidence, and peace of thoughts!
