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 remodeling how advisors method property planning by permitting them to go deeper—each via enhanced visualization and modeling instruments and, extra just lately, via doc preparation platforms that allow purchasers to finish core authorized paperwork inside an advisor-supported surroundings. Kitces Analysis tasks that by 2026, almost half of advisors will make use of expertise to assist their property planning.
Between 2024 and 2026, 1 in 10 advisors are projected to include tech to assist property planning for the primary time. As advisors broaden their involvement, many face questions on whether or not to cost for these providers – and if that’s the case, methods to construction these charges.
Some companies might select to not cost, integrating property planning into their present service choices as a value-add to extend shopper loyalty, strengthen multi-generational relationships, or differentiate themselves within the market. For companies intent on charging, considerations usually 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 give attention to offering schooling, modeling, and facilitating client-directed doc creation through third-party instruments. These platforms usually embody built-in guardrails that forestall advisors from crossing into authorized recommendation whereas nonetheless delivering significant shopper worth to justify a charge.
Advisors who do select to cost for property planning usually comply with certainly one of 4 approaches: 1) bundling it into AUM charges; 2) bundling it into present planning charges, 3) including a devoted property planning tier to their charge schedules, or 4) charging a flat property planning charge. Essentially the most acceptable pricing technique depends upon whether or not property planning is positioned as a core service for all purchasers or as an elective providing for a choose group. Broad integration usually helps modest, across-the-board will increase in AUM or planning charges, whereas restricted use is best aligned with tiered or flat-fee fashions, wherein elevated charges apply solely to purchasers utilizing these providers. For advisors unsure about how a lot to cost, benchmarking knowledge is obtainable for every of those pricing constructions.
Crucially, advisors including property planning providers should additionally talk the change successfully to purchasers. When property planning is launched as a value-add inside an present service providing, messaging will be easy and constructive, emphasizing the brand new providing. If property planning is obtainable as a part of a separate tier or standalone charge, the tone will 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 whole shopper base and elevating charges because of this, a value-centric method works finest, specializing in the extra advantages purchasers will obtain.
In the end, the important thing level is that property planning providers – whether or not conventional state of affairs modeling or technology-supported doc preparation – can present significant worth enough to justify a charge. By figuring out the best pricing construction and speaking modifications clearly and empathetically, advisors can ship added worth, guarantee they’re pretty compensated for the extra work concerned, and confidently present these providers inside regulatory boundaries – serving to purchasers construct readability, confidence, and peace of thoughts!