3 ways older clients can benefit from both financial and legal advice

Many older clients struggle with their planning in later life, not because they don’t have enough money, but because their financial and legal arrangements drift out of alignment.

A retirement income plan is updated, but the supporting legal arrangements aren’t. A gifting strategy changes, but the will remains untouched. Over time, those small disconnects can create unnecessary issues.

Financial planners and solicitors can work together to solve these issues and help ensure they don’t emerge in the first place. Through ongoing coordination, our sectors can help older clients gain peace of mind that their wealth is used in line with their wishes.

Read on to find out more.

1. Updating their retirement plans

While many older clients likely began their retirement planning in midlife, it’s important that they continue to review and adjust their plans as their lives progress.

Financial planners can help by regularly reviewing the client’s income and investment strategies to ensure they remain aligned with their needs. They can use cashflow modelling to help clients understand how changes in economic conditions or life circumstances could affect their retirement income.

Financial planners can also help clients manage risk appropriately for their life stage and ensure their arrangements remain tax-efficient in light of any legislative or personal changes.

When income strategies or asset allocations change, the supporting legal frameworks should also be reviewed to ensure decision-makers and trustee structures remain appropriate.

Solicitors can support clients by ensuring that their legal arrangements remain up to date. This could include registering a new Lasting Power of Attorney (LPA) if a previous nominee is no longer able to take on the responsibility.

It may also involve assisting with financial arrangements the client has in place, such as trusts, which may require ongoing or updated management if the client lives longer than they expected.

Through ongoing coordination, financial planners and solicitors can ensure older clients’ retirement plans remain adaptable and aligned with their wishes.

2. Planning for social care

Planning for care costs is a key concern for elderly clients, as without careful preparation, they can end up using a significant portion of their estate to cover care.

A financial planner can work with clients to explore options such as immediate needs annuities. These can provide a guaranteed income paid directly to a care provider for the rest of the client’s life, in return for a one-off lump sum. This can offer the client reassurance that their care costs are covered and that any remaining assets can be used for their wider goals, including supporting their beneficiaries.

Financial planners can also use cashflow modelling to help clients understand how different care scenarios may affect their finances over time. By modelling a range of potential outcomes, including varying care costs and life expectancy, clients can make more informed decisions.

But the financial side is only half of the equation, and solicitors are integral to putting legal structures in place for long-term care arrangements.

For instance, they can register a Health and Welfare LPA to ensure a trusted individual can make care decisions on the client’s behalf if they’re unable to do so themselves. They can also advise clients on appropriate legal structures to ensure assets are managed in line with both care funding rules and the client’s wider objectives.

3. Making a watertight estate plan

Estate planning concerns clients of all ages, but it can take on greater urgency later in life.

Indeed, estate plans drafted years earlier may no longer reflect a client’s financial position, family dynamics, or tax exposure. So, it’s integral that clients have their financial and legal arrangements in place.

Financial planners can help clients structure their assets in alignment with their goals for both their lifetime and legacy. They can also ensure clients’ estates remain tax-efficient and up to date with the latest allowances and legislation, while advising on gifting and other strategies that help mitigate Inheritance Tax (IHT).

Solicitors can then ensure these legacy goals are backed up by watertight legal documentation. This might include drafting and updating wills, establishing trusts, and helping clients create other important documents, such as a letter of wishes.

Professional coordination can make a significant difference for older clients

As clients move into later life, their financial and legal needs often become more closely intertwined. Ongoing coordination between financial planners and solicitors helps ensure their advice remains consistent and aligned with clients’ changing circumstances.

By working together, our sectors can respond more effectively to events such as changes in health, care needs, or family dynamics.

This holistic approach reduces the risk of gaps or conflicting advice and can provide clients and their families with greater efficiency and reassurance.

To find out more about how our sectors can collaborate for the benefit of our mutual clients, get in touch.

Email info@fbwealth.co.uk or call us on 0333 1122211

Please note

This article is for general information only and does not constitute advice. The information is aimed at individuals only.

All information is correct at the time of writing and is subject to change in the future.

Please do not act based on anything you might read in this article. All contents are based on our understanding of HMRC legislation, which is subject to change.

The Financial Conduct Authority does not regulate estate planning, cashflow planning, tax planning, trusts, Lasting Powers of Attorney, or will writing.

A pension is a long-term investment not normally accessible until 55 (57 from April 2028). The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available. Past performance is not a reliable indicator of future performance.