Legacy Planning Guide
Legacy Planning for Financial Advisors and Wealth Managers
We know this isn't the most comfortable topic to sit down with. But if you've taken the time to open this page, you're already ahead of most people. Financial advisors spend careers helping clients plan their legacies. Yet their own book of business — often worth millions — frequently has no succession plan. Your clients' financial security and your family's inheritance both depend on getting this right.
Why Advisors face unique challenges
Every profession has its own blind spots when it comes to legacy planning. Here are the ones that come up most often for advisors — and the ones that tend to catch people off guard.
Book of business value is relationship-dependent — it can disappear quickly without a plan
FINRA registration and Series licenses terminate at death — immediate compliance issues
Client assets held at custodian require licensed successor for transition
Revenue sharing or trailing commissions depend on continued client relationships
Non-solicitation agreements with former employers complicate succession
Documents every advisor should have
You don't need to have everything perfect from day one — but having these documents in place means your family won't be left guessing when it matters most.
- 1
Practice succession agreement with a qualified successor advisor
- 2
Book of business valuation performed by an M&A advisor in financial services
- 3
Client account list with custodian information for emergency handoff
- 4
FINRA registration status and firm agreement for succession procedures
- 5
Legacy letter to clients explaining why you entered financial services and your philosophy
Mistakes that cost families the most
These aren't meant to scare you — they're meant to protect you. Each one is a real scenario we've seen play out, and each one is completely avoidable.
No successor agreement — clients go to the custodian's default transition process
Book of business value assumed to be equivalent to AUM — rarely accurate
Non-solicitation agreement not reviewed — successor cannot contact your clients
Trailing commissions paid to the estate without a licensed successor to receive them
Revenue share agreement silent on death — family receives nothing
Your first 3 steps as a advisor
Don't know where to start? These are the three most impactful moves for advisors who are just beginning to think about legacy planning.
Review your broker-dealer or RIA's succession planning requirements and resources
Establish a written client succession agreement with a qualified successor adviser
Get a professional valuation of your book of business for estate planning purposes
Frequently asked questions for advisors
What happens to my clients' accounts if I die?
Your broker-dealer or RIA has specific protocols for adviser death. Without a documented succession plan, clients may be reassigned by the firm in ways that don't reflect their preferences. A client succession agreement protects your client relationships.
Can I sell my book of business as part of my estate plan?
Yes — a financial advisory practice has significant goodwill value (typically 1.5–2.5x recurring revenue). Structuring a pre-agreed successor arrangement now, rather than leaving a forced sale to your estate, maximizes the value.
What is a client succession agreement for financial advisors?
A pre-arranged agreement with another advisor or firm to acquire your book of business in case of death or disability. It specifies the purchase price, client notification protocol, and transition timeline — protecting both clients and your estate.
Are there special compliance requirements for adviser succession planning?
Yes — FINRA, SEC, and state regulations have specific requirements. Your broker-dealer or compliance team should review your succession plan to ensure client account transfers comply with all applicable regulations.
Ready when you are
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Where to start on My Loved Ones
Our AI-guided tools walk you through each document step by step — no legal jargon, no blank pages staring back at you. Here's what we recommend for advisors:
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Important disclaimer
This content is for general informational purposes only and does not constitute legal, tax, or financial advice. It was created with the assistance of AI and may contain inaccuracies. Laws and regulations change frequently — always consult a qualified attorney or financial advisor before making estate planning decisions.