FPMG, a Florida-based performance management firm serving financial advisors, has laid out a list of recommendations for financial advisors, on the subject of legacy planning.

According to Dr Denise Federer, FPMG founder, there are numerous ways in which business advisors can approach this subject with their clients. “The goal is to create the best conditions for a smooth, values-driven transition,” she said. 

Highlighting that values are just as important to children as they are to parents, Dr Federer offers the following recommendations:

- Create an ethical will: Ethical wills go “well beyond” the “who gets what” level of traditional wills, Dr Federer said. “Not only can this help your family get a better grasp on who you are as a person, but it also makes it easier for your loved ones to respect and accept your wishes – especially in matters where ambiguity exists.”

- Regularly discuss what’s important: Advisors should recommend their clients communicate how they want to be remembered - beyond their money.

- Agree to disagree on hard things: “Kids are not going to agree with every decision their parents make,” Dr Federer warns. Financial advisors should help their clients remain firm in their decisions. “Kids will be far more likely to follow through with something they don’t like if they understand the thinking and emotions behind it.”

Dr Federer also offers advice on helping adult children through the legacy planning process:

- Encourage questions: Children should be encouraged to discuss parents’ wishes “early and often." A clearly defined plan of what is going where and to whom is only the first step. “Children need to ask the ‘why’ behind those decisions." 

- Communicate things which are important to you: “The best way to ensure that a legacy is lasting is to make sure the recipient reflects those same values and is best equipped to carry them into the future.”

- Don’t make assumptions: “Asking only makes the parents think about something more in-depth and can lead to clearly defined wishes. The more clear and comprehensive they are, the easier the transition will be.”