The role of legal advice in financial planning

Financial planning is about more than just numbers. It’s about living your best life and bringing your vision for the future to life. Integrating legal advice into the planning process is a great way to protect your wealth, build your legacy, make the right moves, and ensure you have advice from those who understand your goals and circumstances when the unexpected arises. 

Here, we talk to Apt Wealth Partners Senior Financial Adviser Dermot Reiter and Apt Wealth Legal Services Senior Counsel Leon McPaul about how you can make the most of integrated advice.

Protecting assets, preserving wealth.

“Caring for your family is about more than meeting their short-term needs. It extends to a time when you may not be around to care for them. Integrating legal advice into your financial plans is a prudent way to achieve the best outcomes for yourself and your loved ones today and tomorrow,” Dermot says.

“While most people will seek legal and financial advice from experts as and when needed, having a collaborative team ensures your professionals work together to achieve your long-term goals. Working together means we can think long-term and look to where we can mitigate risk or anticipate potential challenges on the road ahead.”

Understanding the legal frameworks that govern financial moves, real estate and business ownership is foundational to making informed decisions. Integrating legal advice into your financial planning combines two critical areas to ensure you make the right moves, according to Leon.

He adds that it brings a legal perspective to estate planning before issues arise, putting you on the front foot if or when they do.

“Financial advisers establish investments, income streams and other related products that serve clients to live comfortably both during their working lives and in retirement,” Leon says

“Estate planning is centred around structuring those same affairs so that they achieve what an individual is seeking to achieve in passing on their hard-earned wealth to those they want to see benefit. It is imperative to understand how those investments flow through to an individual’s estate, the consequences of doing so, and how to best achieve the outcome a client is seeking.

“For that reason, you should consider both legal advice and financial planning advice together, because the issue must be approached holistically to avoid unnecessary taxation consequences, legal issues, estate litigation, let alone the stress, time and money involved for those left behind.”

Dermot adds that the key benefits can be summarised in four areas. “Comprehensive advice, risk management, tax efficiency and the cost-effectiveness of a streamlined service. Ultimately, you experience robust wealth protection.”

Shaping your legacy

One of the cornerstones of financial planning is asset protection and wealth preservation, domains in which legal advice plays a significant role. In fact, Dermot and Leon agree that it’s critical to have your legal and financial professionals working together when it comes to your estate plans and your will.

“A will is a must-have. It’s a common misconception that your assets will pass to your closest relative upon your death, without hassle. But it’s often not that simple. If you pass away without a will, your assets will be distributed in accordance with the rules of intestacy. This can add delays and more stress at an already difficult time for your loved ones.

“A will and estate plan that is both legally sound and aligns with your broader financial goals for your loved ones will ensure your assets are distributed in the best way possible. This way, you know you will be helping your loved ones live their best lives if you are no longer here to provide for them,” says Leon.

Dermot adds that with the great wealth transfer already in train, families should be considering not just the legal documentation but how to navigate family dynamics.

“With some $3.5 trillion set to change hands in the coming years, combined legal and financial advice now can help you protect yourself from a legal standpoint, but also make sure you leave a legacy and set the next generation up for success,” he says.

“Alongside legally sound documentation, it’s important to consider how you communicate and involve loved ones. Our specialist advisers and legal counsel can work with your family to navigate dynamics and, where needed, ensure you have solid family governance in place.”

Streamlining property decisions

“Financial advisers are often part of the financial planning for investment, business or residential property purchases, so it makes sense to work with a property lawyer who understands your broader journey. It can make things more cost-effective too,” Dermot says.

Leon highlights that property conveyancing and property law are key offerings from the Apt Wealth Legal Services team.

“We’re excited to be part of a combined financial and legal advice powerhouse, and property law is another area where clients can benefit. Traditionally, you might work with your financial adviser, a mortgage broker and a conveyancing lawyer when buying a home. Now, with Apt, you can engage all three services from one expert team, leading to streamlined property transactions and, where necessary, strategic planning.”

Realising the vision for your business

Dermot highlights that business owners stand to benefit from integrated advice, too.

“Your business is often deeply intertwined with your life goals. It may be the engine that’s helping you achieve them, so it makes sense to understand how decisions will affect you from a legal, financial and life goals standpoint,” he says.

Leon agrees, adding that for business owners, professional and personal lives may not be entirely separate.

“Depending on the structure of your business, your personal finances may become exposed if something goes wrong. An in-house collaboration between your lawyer and your financial planner  will ultimately enable the best short- and long-term decision-making, strategies and outcomes.”

Enhancing your financial decisions at every step

Ultimately, combining financial planning with legal advice significantly enhances strategic decision-making, creating a robust framework for more secure and informed choices. In fact, Dermot and Leon agree that for anyone considering their financial future, integrating legal advice into their financial planning is not just an option – it’s a necessity.

“An integrated approach ensures that financial strategies are not only aligned to your life goal and circumstances but also structured for legal compliance and risk mitigation.

“An expert team of financial planning and legal experts gives you the tools to make the best possible decisions, from buying a home to starting a business and shaping your legacy, ensuring that your plans are legally protected, financially sound and, ultimately, align with your vision for a life well lived,” Dermot concludes.

Introducing Apt Wealth Legal Services

Apt Wealth Legal Services integrates legal expertise with wealth management and financial planning to offer unparalleled, comprehensive advice, supporting individuals, families and businesses with a holistic solution. The service assists existing and new Apt Wealth clients with a range of legal services, including estate planning, property law and conveyancing, family law, business and leasing, commercial law, employment law, migration law, and litigation and dispute resolution.

Talk to your Apt adviser or contact us at info@aptwealth.com.au to find out more.

General Advice warning

The information provided in this blog does not constitute financial product advice. The information is of a general nature only and does not take into account your individual objectives, financial situation or needs. It should not be used, relied upon, or treated as a substitute for specific professional advice. Apt Wealth Partners (AFSL and ACL 436121 ABN 49 159 583 847) and Apt Wealth Home Loans (powered by Smartline ACL 385325) recommends that you obtain professional advice before making any decision in relation to your particular requirements or circumstances.