5 ways solicitors and financial planners can help bereaved clients

Losing a spouse, partner, or close family member is one of the most emotionally challenging experiences a client can face.

Amid the grief, they’re often confronted with a complex and time-sensitive list of legal and financial responsibilities.

From applying for probate and distributing assets to updating wills and understanding pension entitlements, the process can feel overwhelming, especially during such a difficult time.

This is where legal and financial planning professionals can make a real difference. By working together, we can help clients navigate the practical challenges of bereavement with care and clarity, and guide them towards building a financial plan that suits their new circumstances.

Read on to discover five ways our professions can collaborate to support bereaved clients.

1. Managing estate administration

When a client is bereaved, solicitors typically take the lead on administering the estate. They will likely apply for probate, ensure legal compliance, and oversee the distribution of assets in line with the deceased’s wishes.

Financial planners can also play an important complementary role. They can assist in gathering key financial documentation, valuing assets such as investments or pensions, and clarifying what assets form part of the estate.

They can also liaise with solicitors and provide detailed records of the deceased’s finances, which could help speed up probate.

By working together throughout the process of estate administration, solicitors and financial planners can ensure the initial duties are met swiftly and with accuracy, helping to ease the burden on grieving clients.

2. Mitigating Inheritance Tax

Bereaved clients are likely to receive an inheritance from the deceased, and one of the key roles solicitors and financial planners can play throughout the process is to help them mitigate Inheritance Tax (IHT).

Financial planners can assist by exploring all options available to the client, including making full use of their allowances, placing assets into trusts, and efficiently accessing any pensions they inherit. They can also advise on lesser-known entitlements, such as an Additional Permitted Subscription (APS), which allows a bereaved partner to inherit the deceased’s ISA allowance.

Solicitors can help by validating trusts and ensuring any mitigation methods align with the deceased’s wishes and are legally compliant.

You can read more about how our sectors can help minimise IHT in our previous article on the topic.

By working together, solicitors and financial planners can provide joined-up advice that helps clients preserve more of their inheritance.

3. Handling and advising on property and mortgage matters

If your client held a joint mortgage with the deceased, they may be able to repay the remaining balance using assets inherited from the estate. In some cases, a life insurance policy might also cover the outstanding debt.

However, if the estate lacks sufficient funds, the surviving mortgage holder could become solely responsible for repaying the remaining balance.

Solicitors play a vital role in facilitating the legal transfer of property ownership and resolving any disputes that may arise during the process.

Meanwhile, financial planners can help clients evaluate their options – whether to retain, sell, or let the property – based on their overall financial circumstances and long-term goals. If a new mortgage is needed, they can also help the client explore suitable options.

4. Building a plan for the future

Once the immediate legal and administrative matters are settled, many clients (particularly surviving spouses) face a new financial reality.

A financial planner can support them by assessing their current financial position and obligations. Using cashflow modelling, planners can project income, expenditure, and outstanding debts, while factoring in variables such as inflation, market conditions, and life expectancy to offer a clearer view of their financial future.

With their day-to-day finances under control, clients can start thinking long-term. For example, the inheritance they receive may allow them to revisit retirement plans, reallocate assets, or explore new investment opportunities.

It’s also a good time for them to review and update estate planning documents, including wills, letters of wishes, Lasting Powers of Attorney (LPA), and beneficiary nominations. These may require legal validation from a solicitor.

They may also need to update their insurance policies and could benefit from placing them in trust to ensure tax efficiency. A financial planner can advise on suitable policies and trust arrangements, while a solicitor ensures the structure is legally sound.

5. Mediating disputes

In some cases, bereaved clients may become involved in disputes with family members, beneficiaries, or others who believe they have a claim to the estate.

Solicitors and financial planners can work collaboratively to help clients through these emotionally charged and complex situations. Solicitors provide legal guidance, represent clients in negotiations or disputes, and handle litigation if required.

At the same time, financial planners can offer transparency around the financial details of the estate, explain asset values and tax implications, and share relevant information that may clarify the deceased’s intentions, helping to ease tensions and support informed decision-making.

Get in touch

To find out more about how our sectors can work together for the benefit of our 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 retail clients 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.

The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.