Podcast Summary: The Practical Planner

Episode: Navigating the Line Between Tax and Legal Advice
Date: August 27, 2025
Hosts: Thomas Kopelman, Anne Rhodes, Dave (Wealth.com)
Guest: Steven Jarvis, CPA & Tax Educator
Theme:
This episode dives into the complicated balance that advisors must strike between providing tax and legal information versus overstepping into "advice" territory. The hosts and guest focus on practical strategies for financial advisors to safely and proactively integrate both tax and estate planning into their client work, avoiding common pitfalls, and enhancing collaboration with CPAs and attorneys.

Main Themes & Purpose

• Clarifying the boundaries between financial, tax, and legal advice
• Understanding compliance risk—and how “doing nothing” can be riskier than acting
• Practical collaboration strategies for financial advisors, CPAs, and estate planning attorneys
• The evolving role and expectations of advisors, especially as independent RIAs
• Implementation and process: turning theory into tangible client outcomes

Key Discussion Points & Insights

The Fear Factor in Tax and Legal Discussions (00:52–03:38)

• Advisors’ fear: Many, especially from large firms, are warned to avoid tax and legal topics for fear of compliance risks; firms overreact by steering clear of any possible crossing of the regulatory line.
• Reality Check: Every money movement has a tax impact; ignoring this is impractical and increases risk.
• Quote:

  "You already do tax planning. It's just that some of you are intentional about it and the rest of you are a compliance risk."
  —Steven Jarvis (02:22)

Minimum Standards for Tax Integration (03:38–05:58)

• Base-level expectation: At minimum, advisors should coordinate with clients’ CPAs, relay tax-impactful actions (like Roth conversions, capital gains), and review tax returns for errors.
• Failure in the basics: Many advisors don’t even share critical information with CPAs, causing gaps and potential compliance issues.
• Quote:

  "If you're not relaying it, your clients barely know what documents to give to their CPA. And so it's not on their return."
  —Ann (03:55)

Why Advisors Hesitate—Licensing, E&O, and Perceived Boundaries (05:58–07:42)

• Misconceptions of legality:
  • The IRS’s true restrictions are much narrower than most think.
  • Most tax-preparers’ tasks (representing clients, giving legal opinions on new tax code, legal representation) are far outside what most advisors do.
• Overuse of “Check with your CPA”:
  • It's often a throwaway to avoid responsibility.
  • Better alternative: “Let me help you check with your CPA.”
• Quote:

  "We need to get away from this throwaway line of, 'oh, but check with your CPA.'"
  —Steven Jarvis (07:26)

Collaboration is Key: Advisors, CPAs, and Estate Attorneys (07:42–10:06)

• Active involvement: Advisors should arrange three-way communication, sharing agreements, and document consolidation for efficient service and error avoidance.
• Smooth handoff: The best client outcomes arise when all professionals (advisor, CPA, attorney) are in the loop and collaborate.
• Estate planning parallels: The same proactive role applies—include attorneys in planning, know professional boundaries, fill the “grey areas” left by other professionals.

Building Knowledge, Networks, and Strong Processes (12:21–15:16)

• Continuous learning:
  • Podcasts, conferences, peer networks—seek out specific answers from peers, not just generic info.
• Tight onboarding and info collection:
  • Require tax returns and all relevant documents before meeting with clients to ensure thorough advice.
• Avoiding “order taker” syndrome:
  • A disciplined, process-driven approach builds client trust and differentiates advisors from “do-nothing” competitors.

Where Advisors Get in Trouble (16:11–18:58)

• Real-World Pitfalls:
  • Mishandling complex strategies—e.g., 60-day IRA rollovers to solve underpayment issues.
  • Failing to flag risks—e.g., not warning about 401k loan consequences if employment ends.
• Collaboration prevents disaster:
  • In combative client-CPA-Adviser relationships, mistakes get blamed; a collaborative approach leads to better fixes and learning.
• Quote:

  "Way more often I see disgruntled clients than I see actual like lawsuits against advisors on tax stuff."
  —Steven Jarvis (19:54)

Setting Expectations and Avoiding Surprises (19:54–22:09)

• Importance of reiteration:
  • Advisors must repeat, remind, and clarify throughout the year to avoid client confusion when tax season arrives.
• Frequent check-ins:
  • Schedule regular reviews (mid-year, year-end, tax season) to update projections and adjust to changed circumstances.
• Tangible process:
  • Example process: Don’t meet until return is in, review, project, update at least every 4–5 months.
• Quote:

  "Nothing is a surprise unless you didn’t give the right info."
  —Ann (21:13)

Estate Planning Complexities and the Value of Advisor Perspective (22:09–29:22)

• Real-life attorney/advisor dynamics:
  • Attorneys differ on how to structure advanced strategies (e.g., grantor trusts for spouses); knowing whom to ask and when is vital.
  • Advisors can add context attorneys and CPAs lack (family dynamics, behavioral tendencies, admin ability).
  • Advisors should regularly review—not just set up—estate docs as families and finances evolve.
• Quote:

  "The client doesn't have the expertise or quite frankly the interest to make sure that their final documents actually make sense for their life...financial advisors just inherently to the model have a lot. They have enough insight into the expertise to know when experts need to be tagged in."
  —Steven Jarvis (28:29)

From Planning to Implementation to Value (29:22–31:39)

• Advisors’ role extends beyond initial planning:
  • Oversee funding, ensure CPA/attorney implement recommendations, monitor for changes needed.
• Legal advice vs. practical client advice:
  • Big risks come from either venturing into legal advice or simply giving no guidance at all.
• Practical tip:

  "Get a copy of those documents after it’s been put in place, too, right? So it’s not just on the front end..."
  —Thomas (29:22)

E&O Claims: Doing Nothing is Not Safe (31:39–33:39)

• True claims risk comes from “hands-off” advisors:
  • Most Errors & Omissions claims Steven sees are from advisors who think staying silent on taxes keeps them safe, but clients get blindsided and file claims when consequences emerge.
• Negligence through indifference:
  • Not acting—or not following through on execution/monitoring—can be as damaging as bad advice itself.
• Quote:

  "Don’t let your indifference turn into negligence that it costs you."
  —Steven Jarvis (33:32)

Notable Quotes & Memorable Moments

• “You already do tax planning. It's just that some of you are intentional about it and the rest of you are a compliance risk.”
  —Steven Jarvis (02:22)

• “We need to get away from this throwaway line of, 'oh, but check with your CPA.'”
  —Steven Jarvis (07:26)

• “The best value you can bring is making sure the whole team is communicating, not just ‘referring out’ and washing your hands.”
  —Anne/Thomas (paraphrased flow throughout, especially 08:40–10:06)

• “Way more often I see disgruntled clients than I see actual like lawsuits against advisors on tax stuff.”
  —Steven Jarvis (19:54)

• “Don’t let your indifference turn into negligence that it costs you.”
  —Steven Jarvis (33:32)

• “Nothing is a surprise unless you didn’t give the right info.”
  —Ann (21:13)

Key Timestamps for Important Segments

• 00:52–03:38: Fear of tax/legal topics in legacy firms, how this hampers good advice.
• 05:58–07:42: What constitutes “legal” vs. “advice”; understanding IRS and compliance boundaries.
• 08:40–10:06: Three-way team building—advisor, CPA, attorney.
• 12:21–13:56: Building knowledge and networking directly via conferences and peer learning.
• 16:26–18:58: Real world advisor mistakes—rollover strategies gone wrong, need for clear risk explanations.
• 22:09–26:59: Estate strategy real talk—advisors bridging between CPAs/Attorneys/Family.
• 31:39–33:39: E&O risk, why “radio silence” on taxes isn't safe.

Actionable Takeaways

• Be proactive: Require tax/estate documentation before launching new client work.
• Facilitate true collaboration: Use information sharing agreements; arrange joint calls/emails with the client and their CPA/attorney.
• Continuous process, not one-and-done: Review returns, estate plans, and projections at set intervals throughout the year.
• Don’t outsource the “gray area”: Advise and coordinate, even in areas where you aren’t the expert; know when to bring in other professionals.
• Keep learning: Leverage conferences, podcasts, and direct questions to expert peers for practical, actionable advice—don’t just rely on theory or generic best practices.
• Monitor implementation: The biggest risk is not only in planning, but in making sure execution goes as intended.

Resources & Next Steps

• Steven Jarvis:
  • LinkedIn
  • Retirement Tax Services Podcast
  • Retirement Tax Services Summit (Sept 30–Oct 3, 2025)
  • retirementtaxservices.com
• Hosts:
  • Anne Rhodes & Thomas Kopelman – Wealth.com

This episode is a must-listen for any advisor striving to elevate their value, protect their business, and deliver seamless financial outcomes for clients by building bridges—not barriers—with tax and legal professionals.