How solicitors and financial planners can work together to support vulnerable clients

Financial planners and solicitors are used to working with people from diverse backgrounds and at various stages of life, each with unique needs and circumstances.

While the nature of the work may differ depending on the client, the goals and the ways in which professionals can assist are often clear from the start.

However, some clients may require additional support that they don’t ask for. This could be because they don’t realise they need additional help, are unaware that assistance is available, or feel hesitant to discuss their needs.

These clients – often known as “vulnerable clients” – may benefit from different types of communication or from specific strategies that can help professionals understand their needs.

Moreover, financial planners and solicitors can work together to establish support systems to provide vulnerable clients with both financial security and legal protection.

Read on to find out about the various types of vulnerability, how to recognise them, and the steps financial planners and solicitors can take to support vulnerable clients in the short and long term.

Multiple drivers behind vulnerability

There are many different forms of vulnerability, but they can broadly be broken down into four main categories:

• Health related issues – Including physical or mental disability, chronic or terminal illness, addiction, mental health issues, and hearing or visual impairment
• Life events – Including bereavement, income shock, relationship breakdown, and domestic or financial abuse.
• Resilience issues – Including erratic income levels, over-indebtedness, and low or no savings
• Capability issues – Including low knowledge or confidence in managing finances, poor literacy or numeracy skills, learning difficulties, non-existent digital skills, and no access to necessary help or support.

In some cases, signs of vulnerability in a client may be immediately apparent, such as if they have a physical disability. Other issues, like addiction or low self-confidence, may be harder to notice, but you might gradually see them over time.

In other instances, the signs may not be overt, but subtle indicators may raise concerns and warrant further attention. For example, this could be the case if your client is suffering financial abuse or has mental health issues.

Financial planners and solicitors can make a lasting difference in supporting vulnerable clients

There are several ways financial planners and solicitors can create a long-term positive difference for vulnerable clients.

In every instance, professionals from both sectors can support clients by cross-referring them to each other. This helps ensure that vulnerable clients receive comprehensive and holistic support that addresses both their financial and legal needs.

Here’s what we can do to help.

Register a Lasting Power of Attorney

Some vulnerable clients may need a Lasting Power of Attorney (LPA) to make financial or health decisions on their behalf if they’re unable to make those decisions themselves.

Financial planners can help clients and their LPAs ensure their financial affairs are structured to protect their assets and meet their long-term goals. They can also review the client’s current financial situation and suggest steps to ensure their financial security in the event they become unable to manage their finances.

Solicitors can assist in registering the LPA with the Office of the Public Guardian, making sure the document is legally valid and enforceable.

Set up trusts

Trusts can be beneficial for vulnerable clients as they provide a structured way to manage assets. They can also help prevent assets from being misused, offer protection against potential care fees, and provide for dependents efficiently and securely.

Financial planners can assist by advising on the most appropriate type of trust based on the client’s needs. They can also guide clients through the tax implications and help maximise the benefits of the trust.

Solicitors can support by establishing the trust, ensuring that all documentation is in place, and offering advice on the legal aspects of managing and distributing the trust’s assets.

Plan for care

Some vulnerable clients may benefit from planning for social care to ensure their needs are met while also protecting their assets.

Financial planners can help by assessing the client’s financial situation, providing guidance on how to fund long-term care, and recommending payment options such as a lifetime care plan. They can also help structure the client’s assets to minimise the impact of means-testing, such as using trusts or gifting strategies to protect wealth for future generations.

Solicitors can help by advising on the legal elements of social care and its costs. This might include setting up trusts to protect assets from being used for care fees or helping to register an LPA to ensure the client’s preferences are legally documented.

Provide debt management assistance

Vulnerable clients with debts may benefit from debt management assistance to regain financial stability and help alleviate any stress caused by their situation.

Financial planners can review the client’s finances, create a debt repayment plan, and advise on strategies to reduce interest rates or consolidate debt. They may also recommend budgeting tools, savings strategies, or specialist organisations like Step Change that can help clients to rebuild their financial position over time.

Solicitors can help by offering legal advice on debt-related matters, including negotiating with creditors, exploring options for insolvency, or setting up debt relief orders. They can also help clients understand their legal rights regarding debt recovery, including protection from creditors or pursuing legal actions if necessary.

How to offer immediate support to vulnerable clients

As well as the long-term support financial planners and solicitors can offer vulnerable clients, there are also immediate adjustments that could help.

These may include:

• Offering documents in larger fonts, Braille, or audio formats, and using accessibility tools like screen readers
• Communicating with Text Talk facilities or video calls with subtitles
• Offering alternatives to written signatures, such as stamps or digital signatures
• Signposting relevant organisations that could help the client
• Working with a translator.

There are also several conversational models that outline the approach to take with different types of vulnerabilities. You can find out more about these in this Just Adviser handbook.

Get in touch

To find out more about how our sectors can work together to support 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.

The Financial Conduct Authority does not regulate trusts or Lasting Powers of Attorney.