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Modern Estate Planning Blog

Elder Law & Special Needs Planning

What’s in a Name? | Sacramento Trust Law Firm

November 29, 2011

When meeting with my Sacramento trust and estate planning clients, I have found that many are confused by the types of financial advisors to whom they have been referred, or what each profession does, so I have prepared a brief outline of experts and their scope of services for you. I work closely with many of these professionals as my clients are developing their estate plans and I hope you find this overview helpful.

CFP® Professional
Financial planners who hold CFP® certification have met education, examination, experience and ethics requirements. Only those who have fulfilled the certification and renewal requirements of CFP Board can display the CFP® certification marks, which represent a high level of competency, ethics and professionalism.

Listed below are some different types of financial advisers. These advisers should refer you to a planner if they cannot meet your financial planning needs.

Accountant

Accountants provide advice on tax matters and help you prepare and submit your tax returns. All accountants who practice as Certified Public Accountants (CPAs) must be licensed by the state(s) in which they practice.

Attorney

A relatively small percentage of attorneys provide financial planning services, usually specializing in estate and tax planning. A financial planner may ask an attorney to provide specific legal advice for a client, particularly in the areas of taxation or estate planning. An attorney may also be called upon to prepare the legal documents necessary to implement recommendations in areas such as wills, trust documents or business ownership planning.

Insurance Agent

Insurance agents are individuals licensed by a state or states to sell life and health and/or property and casualty insurance products. Many financial planners are licensed to sell or give advice on insurance products. Other financial planners might identify insurance needs for a client, but turn to a licensed insurance agent for recommendations about which existing insurance products best meet your needs. Independent insurance agents sell products for two or more insurance companies, while exclusive insurance agents represent only one.

Investment Adviser

Investment advisers are individuals or firms that provide securities advice for compensation as part of a regular business. They must register with the Securities and Exchange Commission (SEC) or appropriate state securities agencies, unless specifically exempted. Because financial planners often advise people on securities-based investments, many are registered as investment advisers. Investment advisers cannot sell securities products without a securities license. For that, you must use a licensed securities representative, such as a stockbroker.

Stockbroker

Also called registered representatives, stockbrokers are licensed by the state(s) in which they practice to buy and sell securities products such as stocks, bonds and mutual funds. They generally earn commissions on all of their transactions. Stockbrokers must be registered with a company that is a member of the Financial Industry Regulatory Authority (FINRA) and pass FINRA-administered securities exams.

If you have questions about which type of financial or legal professional would be best to handle your unique planning needs, be sure to give our Sacramento trust and estate planning law firm a call at (916) 241-9661.

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CLIENT Story

I was absolutely without a clue as to how to begin or what I should do to establish an estate plan. I did know that I wanted someone I could trust, that was honest and I would have confidence in. I was referred to Heather by my friend who was being legally advised by Heather on another estate. She was very satisfied with her work and thought I might be happy with her service. At our consultation appointment, her presentation was very thorough. I had lots of questions, and she was easy to talk to and was able to guide me to just the kind of estate plan I needed. That was 10 years ago. Due to circumstances in my life, I have had to make changes to my plan, and I always go back to her for her legal services and guidance. I have recommended Heather before.
Gwen

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