Deliver Asset Protection Planning to Your Wealthy Clients – Episode 46
For high-net-worth clients, asset protection is a strategic pillar of a smart wealth management plan. Indeed, the affluent have told us time and time again that one of their most important financial concerns is protecting the wealth and legacy that they’re built.
Trouble is, advisors often don’t possess the deep expertise needed to create rock-solid asset protection plans. What’s more, they may not know where to go to access that expertise. The result: Affluent clients end up with too few asset protection safeguards in place—or, worse, none at all.
The good news is that you can build strategic relationships with asset protection specialists and deliver tremendous value to your wealthy clients and their families. Here are some tips and action steps courtesy of Joe Weiss, a leading asset protection specialist with expertise and property casualty, commercial and business insurance.
Common asset protection issues
For starters, it’s important to recognize some of the biggest asset protection “red flag” issues that your clients might face. For example, many homeowners put their house in a trust or LLC to protect assets from a lawsuit. Unfortunately, they often don’t realize that they also need to name that trust or LLC on their insurance policy. Skipping that step can open them up to unexpected liability.
Another example: people with multiple homes who don’t name all of them on their umbrella policy.
Not updating an asset protection plan can also invite unwanted problems. For example, given the soaring value of real estate in many areas of the country in recent years, an insurance policy’s replacement cost limits may be far too low today. That, of course, could lead to being paid far less than is necessary to rebuild.
Connecting with experts
To address issues such as these, it’s often best to enlist the guidance of an asset protection specialist and work in partnership with that professional to best serve clients. Weiss offers two ways to find such expertise:
- Look locally. Insurance companies that cater to HNW clients often can connect advisors with professionals in their areas who are experts in asset protection. You’ll want to vet them and ensure the person is someone you would be comfortable introducing your client to, of course. Over time, these experts can potentially serve as good referral sources too.
- Look nationally. Sometimes, advisors may not have easy local access to a trusted professional. And in some small or tight-knit communities, affluent clients don’t want the local insurance professional to know their financial situations intimately. In that case, cast a wider net for a private client insurance professional.
Positioning yourself as an advocate
Armed with access to the right expertise, you can then position yourself as a true advocate for your affluent clients—someone who goes beyond mere investment management into the areas of protecting wealth and legacy. This added value is hugely appealing to the affluent, who (as noted) are concerned about their ability to safeguard their assets and prevent them from being unjustly taken.
Let these clients know that their wealth protection efforts can be reviewed and assessed by a member of your expert team. By being able to offer—and deliver—peace of mind, you’ll elevate your practice to a higher level of success.
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