Money talks: preparing spouses to deal with financial planning.

• Author: Allmon, Michael B.

We've all heard that communication is key in a successful relationship, whether business or personal. Yet too often we, as CPAs, encounter situations where a surviving spouse had a minimal role in managing finances--and little to no information regarding their financial issues. CPAs and financial advisers can help--during life and at death.

The first step is to raise the subject with our client either during the tax interview or whenever estate planning is discussed. Once the dialogue has begun we should encourage open financial communication between both spouses and parties in a relationship. We should also provide some subjects for clients to consider that are pertinent to their individual needs, including:

1. Estate plans--After explaining how such plans work, make sure your clients answer the questions: Who should the surviving spouse talk to first [i.e., family attorney, investment adviser, insurance broker, etc.]? Who is and what are the roles of the executor/trustee? If the client has children, who are the guardians should something happen? Have we reduced our estate taxes as we wish and have we done so efficiently?

2. Current investments and accounts--What do we own? Why? Who is our adviser? Do we have an investment policy statement that clearly states our investment goals? Is the statement provided to all of our financial advisers? Is our asset allocation appropriate for our stage of life and risk tolerances?

3. Insurance--What do we have? Why? Who is our contact? Should we discuss all types of insurance--life, disability and umbrella liability...