Episode Summary: "How to Make Estate Planning an Essential Part of Any Client’s Financial Plan with Desarte Yarnway"

Podcast Information:

• Title: The Practical Planner
• Host/Author: wealth.com
• Description: Focuses on reimagining estate planning for financial advisors, offering deep insights and actionable takeaways to better serve clients and grow advisory businesses.
• Hosts: Thomas Kopelman and Anne Rhodes
• Guest: Desarte Yarnway, CEO of Yarnway Wealth Management and Head of Community at Altruist
• Release Date: September 24, 2024

Introduction

In this episode of The Practical Planner, hosts Thomas Kopelman and Anne Rhodes delve into the critical role of estate planning within comprehensive financial planning. The episode features a special guest, Desarte Yarnway, a distinguished financial advisor and CEO of Yarnway Wealth Management, who brings a wealth of personal and professional experience to the discussion. The conversation emphasizes making estate planning an integral part of financial advisory services to ensure clients achieve holistic financial well-being.

Guest Introduction: Desarte Yarnway's Journey

Desarte Yarnway opens up about his personal history and professional trajectory, highlighting the profound impact of his father's lack of an estate plan.

[00:53] Desarte Yarnway: "My father didn't have an estate plan. He left my mom with little, two young boys, one of whom was my cousin that he went to rescue during the civil war, and me and five older sisters to figure it out."

Yarnway's early life experiences in Liberia, marked by civil wars and familial responsibilities, instilled in him a deep understanding of the necessity for proper estate planning. This personal narrative fuels his passion for helping clients secure their financial legacies.

The Importance of Estate Planning in Financial Advisory

Thomas Kopelman initiates the discussion by underscoring the evolution of financial advisors into comprehensive planners who address all facets of clients' financial lives, including estate planning.

Estate Planning as a Fundamental Component

Yarnway emphasizes that estate planning is not just a luxury for the ultra-wealthy but a fundamental aspect of financial planning for everyone.

[04:16] Desarte Yarnway: "Estate planning is personal. It's personal for the advisor, it's personal for the client... so they can make these personal decisions easier and more comfortable for themselves."

He introduces his trademarked mental model, RIGHTE (Retirement, Investments, Insurance, Taxes, and Estate planning), to ensure that estate planning is embedded from the very beginning of client engagements.

Bridging the Awareness Gap

Both hosts and Yarnway acknowledge a significant gap in awareness and implementation of estate plans among clients. Thomas shares his observation of the scarcity of estate plans among his extensive client base.

[08:24] Thomas Kopelman: "From the hundred, I have under five estate plans from people as they came in... it's one of the biggest areas that's lacking in people's financial life."

Yarnway counters by noting that clients with significant financial events, such as windfalls or equity compensation, are more likely to consider estate planning, yet the overall adoption remains low.

Integrating Estate Planning into Financial Planning Processes

Establishing a Structured Process

Yarnway discusses the importance of having a structured process to incorporate estate planning seamlessly into financial advisory services. He outlines how his firm engages clients early on to assess and address estate planning needs.

[07:23] Desarte Yarnway: "We want to ensure that our clients have a great foundation. So even if they left us after that first 45 to 90 days... they would move on better than they came to us."

Timely Engagement

Estate planning should be introduced within the first six months of client engagement to set a solid financial foundation.

[11:48] Desarte Yarnway: "I would say within the first six months. Because what we want to do is ensure that our clients have a great foundation."

Highlighting Gaps and Educating Clients

Advisors must actively identify gaps in clients' financial plans and educate them on the significance of estate planning.

[06:57] Thomas Kopelman: "What's your role? How do I help facilitate it? Where in the estate planning process does it come into play?"

Yarnway responds by explaining that advisors should use tools and processes to guide clients towards recognizing and addressing their estate planning needs.

Practical Steps for Advisors to Enhance Estate Planning Services

Implementing the RIGHTE Model

Yarnway's RIGHTE model ensures that estate planning is a cornerstone of the financial planning process, ensuring comprehensive coverage of clients' financial needs.

[05:01] Desarte Yarnway: "When I first went independent... I trademarked this acronym called the RIGHTE planning process."

Collaborative Approach with Attorneys

The synergy between financial advisors and estate planning attorneys is crucial. Yarnway and guest David Hahn discuss the importance of collaboration to enhance the estate planning process.

[20:22] Desarte Yarnway: "Advisors should not act as attorneys... you have resources and attorneys that can help you with one of your clients' most pressing needs."

Encouraging Client Action

Advisors should inspire clients to take action by providing them with vetted resources and simplifying the estate planning process.

[21:45] Desarte Yarnway: "If you are conspiring your clients to action using the tools that are available, you'll be fine."

Technology and Tools for Effective Estate Planning

Evaluating Technological Solutions

Yarnway outlines a three-point rubric for integrating technology into estate planning services:

1. Efficiency: Does the technology streamline firm operations?
2. Cost-Effectiveness: Does it offer good value for its cost?
3. Client Experience: Does it enhance the client's interaction and satisfaction?

[12:19] Desarte Yarnway: "Does it make our firm more efficient?... What is the bang for buck?... Are my clients pleased?"

Leveraging Platforms like wealth.com

Platforms such as wealth.com play a pivotal role in connecting advisors with vetted estate planning attorneys, enhancing both efficiency and client satisfaction.

[16:21] Thomas Kopelman: "Using a place like wealth can really help... they have vetted attorneys in every single state."

Simplifying the Estate Planning Process

Yarnway stresses the importance of making estate planning accessible, affordable, and manageable for clients, thereby increasing adoption rates.

[13:17] Thomas Kopelman: "If there's the statistic that your average client does 40% of your recommended action items, I can guarantee estate planning is at the top of the list."

Collaborative Roles: Advisors and Attorneys

Enhancing the Estate Planning Experience

Guest David Hahn elaborates on the crucial role advisors play in the estate planning process, beyond merely referring clients to attorneys.

[16:21] David Hahn: "The advisor is so, so critical... to motivate them to get a plan done and knowing everything about them."

Ensuring Comprehensive Implementation

Advisors assist in the strategy, implementation, and funding stages of estate planning, ensuring clients not only draft documents but also fund their estate plans effectively.

[18:48] Thomas Kopelman: "Reviewing estate plans and identifying discrepancies ensures clients have accurate and personalized documents."

Concluding Insights and Takeaways

Estate Planning as the Backbone of Financial Plans

Yarnway reinforces that estate planning is essential for a robust financial plan, enabling clients to leave a meaningful legacy.

[22:07] Desarte Yarnway: "Estate planning is the backbone of a financial plan. If you haven't embedded it into your process as an advisor, you should start doing that."

Empowering Advisors with the Right Tools and Mindset

Advisors should adopt a proactive mindset and leverage available tools to make estate planning an integral, efficient, and client-friendly component of their services.

[16:21] Desarte Yarnway: "Advisors need to inspire their clients to action using the tools that are available."

Final Thoughts

Thomas Kopelman wraps up the episode by reiterating the importance of estate planning and encouraging advisors to utilize platforms like wealth.com to enhance their estate planning services.

[22:36] Thomas Kopelman: "If you're listening and you haven't checked out wealth yet, there's a reason why Desarte and I are both a part of the company... because it's something that we believe in."

Key Quotes

• Desarte Yarnway [00:53]: "Estate planning is personal. It's personal for the advisor, it's personal for the client."
• Thomas Kopelman [08:24]: "It's one of the biggest areas that's lacking in people's financial life."
• Desarte Yarnway [11:48]: "Within the first six months."
• Desarte Yarnway [16:21]: "The advisor is so, so critical to the estate planning process."
• Desarte Yarnway [22:07]: "Estate planning is the backbone of a financial plan."

Conclusion

This episode of The Practical Planner with Desarte Yarnway offers invaluable insights into the integration of estate planning within financial advisory services. By sharing personal experiences, emphasizing structured processes, advocating for collaboration with legal professionals, and leveraging technology, Yarnway provides a comprehensive guide for advisors aiming to enhance their estate planning offerings. The discussion underscores the essential role estate planning plays in securing clients' financial futures and leaving lasting legacies.

For financial advisors looking to deepen their understanding and improve their practice, this episode serves as a must-listen, providing both strategic frameworks and practical advice to elevate their estate planning services.