“We feel it is equally important to have the appropriate insurance cover to meet care costs, such as in the case of someone developing a terminal illness.”
Mr Folorunso says: “Therefore, we ensure we have discussions with clients as early as possible during the financial planning process and assist them through our in-house will writing service.
“It is also paramount clients record their views, preferences and priorities about their future healthcare and/or financial decisions should they ever become incapable of making decisions later in life.”
Vulnerable clients
Yet, it could be another 30, 40 or even 60 years after putting a plan in place that a client eventually passes away.
This means it is likely that their end-of-life arrangements will need to be regularly reviewed throughout the duration of their life.
During their later years, the client themselves is likely to become more vulnerable.
Knowing how to communicate with vulnerable clients is part and parcel of being an adviser, and it is also why encouraging clients to make important end of life decisions early, when they are still able to make those decisions for themselves, is advisable.
“Assessing and defining the needs of vulnerable clients has long been an issue in the financial services industry and remains an important topic today,” acknowledges Stuart Wilson, channel marketing director at more2life.
“Advisers need to ensure they are aware of the implications of advising potentially vulnerable clients and broadening their understanding of the issue.
“This is especially true for advisers operating in the later life lending market. For example, the most popular age bracket to take out equity release products is between 65 and 74, and all of these customers are deemed to be vulnerable by the FCA.”
In some instances, an adviser will not have the specialist knowledge to deal with certain aspects of end of life planning themselves.
But as Mr Gallacher notes: “Good financial advisers know their clients better than almost any other professional and are ideally placed to bring together all the elements – solicitor, accountant, financial products – that their clients need.
“Some other professionals (accountants and solicitors) can be guilty of being order takers, arranging the requested solutions without really knowing the client. We’ve often seen potential issues created by solicitors, in particular, simply taking the client’s instruction.”
He recalls: “In the worst example, the potential inheritance tax on one estate would have wiped out one side of the family’s inheritance due to a standard worded will and the solicitor’s lack of awareness of the impact of any existing family trust.”
