Trust and Estate Attorneys and Accountants
For the great majority of financial advisors, T&E attorneys and accountants are the most common centers of influence. Other attorneys can prove very useful as referral sources—corporate and divorce lawyers, for example—but they are not as often approached as T&E lawyers.
Both estate lawyers and accountants prefer business owner clients. In a survey of 239 T&E attorneys, nearly 60% of them identified successful business owners as ideal clients (Figure 1). A survey of 394 accounting firm partners, meanwhile, found that about seven in 10 identified business owners as ideal clients.
Such clients are attractive for the complexity of the work they do (as well as their wealth), which presents opportunities for advisors to help. Business owners have multiple, diverse needs for many special legal and accounting services, and this offers opportunity for advisors seeking referrals.
But for T&E attorneys and accountants to refer you, you must first have a detailed understanding of their practices and you should be able to use your own expertise to help them become more successful.
Creating Value
Bear in mind that accountants and attorneys are under pressure. Their services are being commoditized, just like financial advisors’ are. For example, three-quarters of T&E attorneys and two out of five accountants are experiencing fee compression (Figure 2). This can easily harm their profits and income.
To contend with these dynamics, they have to add value, just as advisors do, and you can help them do it.
Based on the research, most T&E attorneys and accountants will choose to work with financial advisors who are technically proficient and can help them build their practices. An advisor’s ability to develop strong relationships is also important.
The most important thing you can do is help these professionals grow their own practices by generating more revenue. If you do that, you will likely become the preferred advisor they refer clients to, if not the only one.