The Most Serious Conversation You Will Ever Have

A thought-provoking conversation with Executive Vice President and Subject Matter Expert Linda Eaton.

A client informs you she has a terminal illness. This is a lightning bolt from the blue and you may find yourself at a loss for words. So, we asked our practice management expert, Cannon EVP Linda Eaton, to advise us on what to say in this, the most serious conversation you may ever have as an FA.

“Keep in mind your client is informing you of this very personal fact because she needs your professional advice. Be sympathetic but not overly. She hasn’t called you for sympathy. The most appropriate response is: ‘I’m very sorry to hear this. Do you want to tell me about it?’ When stricken with a terminal illness, many people want to tell you something about their malady. Allow your client to make that choice. By asking her, you acknowledge the seriousness of what she has just said. This is not the moment to change the subject. Stay focused on what they have just told you.”

Further, Linda said, many people will distance themselves emotionally from their own illness in order to deal with their financial affairs, and you must do the same.  “Be gentle, yet firm,” Linda advised, “and endeavor to get an understanding of how long your client might live. This is critical in terms of what income they and their loved ones may need from their portfolio.” Linda added that it is not necessary to get this information at that very moment, but you must get it quickly.

The second key question is this: which of her family members will be involved in her financial affairs at this point? “The gravity of this situation is the reason we at Cannon stress how critical it is to have the client’s family and beneficiaries involved in the planning process. The shock of contemplating an emotional loss of this magnitude is often overwhelming to family members.

If you have not met your client’s family now is the time to do it not after the funeral. For a grieving widow or widower, or anyone suffering a loss, having to meet the financial adviser to the deceased for the first time just adds to the list of onerous and often unfamiliar tasks they confront.”

Further, as your client becomes less able to handle financial matters, it will be comforting to all involved to have the relationships already established. Not only is this a “best practice” for you as an FA, this is especially important because industry statistics show that after the death of the primary account holder, approximately 70% of heirs will change financial advisers.