Trust is paramount in estate planning. You’re choosing someone who could influence what happens with your money, assets, and even your wishes after you’re gone. You may have heard a provider describe themselves as “regulated”. But what does that actually mean? And what’s covered? Here’s a guide to understanding what regulated means in the context of estate planning.
Why Regulation Matters in Estate Planning
Estate planning covers everything from drawing up a will, setting up a trust – you can read more at https://investopedia.com/terms, creating a power of attorney, arranging your inheritance or dealing with other aspects of financial planning. Poorly drafted documentation or advice can lead to problems many years down the line, particularly if you’re no longer alive to explain what you wanted.
A regulated provider will usually be bound by certain rules and regulations relating to things like competency, confidentiality, record keeping, complaints handling, professional indemnity insurance, and ethical behaviour. This doesn’t mean you can expect perfection, but it does mean there is some accountability.
There are good reasons for this, because estate planning isn’t just a bit of paperwork, it’s about getting things right, which is best suited to a regulated provider who knows what they’re doing.
What Does Regulated Mean?
It’s easy to assume that a provider is fully regulated in all areas they offer, but that’s not always the case. One activity might be regulated, whilst others aren’t. Or, some services might be regulated under different authorities.
In short, it’s easy to make wrong assumptions. So it’s worth asking exactly which activities are regulated, and what this means. “Are you regulated?” is a good first question, but “Which services are regulated, and by what authority?” is a better one.
What Are the Benefits of a Regulated Estate Planning Provider?
There are plenty of estate planning providers out there who are regulated, but you might not know it. Before entrusting someone with the care of your estate, you want to understand the protections that come with working with a regulated provider. A reputable estate planning provider such as Futura Planning Ltd should be able to tell you easily and without any obscure jargon what parts of their business are regulated.
If you’re unsure, don’t hesitate to ask the following questions:
- What activities are regulated?
- Who regulates them?
- What are the qualifications and experience of the adviser?
- Do they have professional indemnity insurance?
- How are complaints handled?
- Are costs and fees outlined in writing before starting?
- Will the advice be tailored to your individual needs?
These questions aren’t meant to be aggressive, they’re designed to help you feel confident in your choice of provider. A provider who encourages such questions is more likely to value transparency and openness.
Document Drafting vs. Advising
Document drafting and document advising are two different things. An estate planning document might appear straightforward, but the advice behind it is the real value. The first question to consider is whether the company is doing form filling or providing actual advice.
A document preparation service could simply prepare standard forms or draft simple clauses, whereas a broader advisory service should look at the bigger picture. This could include the client’s family situation, joint ownership, vulnerable beneficiaries, business interests, blended families, future care needs, and potential disputes. A will or power of attorney that works for one individual may not work for another.
If the company is recommending a particular course of action, regulation is critical. If they are giving advice, then you need to know whether they are regulated and how you can complain if things go wrong.
Professional advice need not be presented in technical terms. It is usually good that a company explains its services in plain language, but there are some actions you should be wary of. Be on alert if a company:
- pressures you to sign up
- fails to explain its regulatory status
- makes promises about outcomes
- gives vague answers about cost
- uses scare tactics
- recommends overly complex plans without explaining the risks
- cannot tell you how you can complain
Estate planning should never feel rushed. Make sure you have ample time to ask questions, review documents, and decide whether the proposed plan is appropriate for you.
Will or power of attorney (more info here) documents may not be put to the test for years. If a dispute or issue occurs in the future, the quality of advice provided and records kept at the time may be of crucial importance. A regulated provider will have systems in place to document advice, manage conflicts of interest, keep records, and deal with complaints. This may be beneficial for both you and anyone who may use your documents in the future.
Good estate planning is about much more than just generating valid legal documents. It is about having a clear plan that can be easily explained and justified if necessary. Regulation should be important, but it is not the only factor to consider. You should also look at a provider’s experience, communication style, transparency, and understanding of your specific circumstances.
The right provider will explain their options clearly, provide information on the pros and cons of each, and recommend a suitable solution without unnecessary complications. Price is also important, although cheap doesn’t always mean poor, and expensive doesn’t always mean good.
‘Regulated’ should be the beginning of the conversation, not the end. You need to find out who regulates them, what protection they offer, what insurance they have, how you can complain, and what type of service they provide. Choosing an estate planning provider is far too important to take lightly. Understanding what ‘regulated’ means will help you make decisions that are right for you and give you peace of mind that you can be confident in.
In most cases if they tell you they’re regulated, then you can request details of their registration status and what services they are allowed to provide. If they are a company like Futura Planning Ltd, they should also state whether third parties will be used to deliver any specialist services.
It’s also reasonable to ask how frequently you should review your plan. Changes in your life (marriage, divorce, purchase of a new property, change in your business, or a baby in the family) could impact earlier decisions, even if the documents themselves are properly drafted.
