Incorporating Tax Services: Kestra Financial Hires Veteran Estate Lawyer
In a move signaling the intensifying competition in wealth management to enhance their tax services, one of the largest independent firms has appointed a seasoned estate lawyer to lead its advanced planning team.
Enhancing Advanced Planning Capabilities
Kestra Financial, based in Austin, Texas, recently announced the expansion of its investment in tax, estates, and other intricate planning areas under the leadership of Christine Brown. With a background as a wealth strategist at UBS and Credit Suisse, Brown brings decades of experience advising high and ultrahigh net worth families on wealth transfer strategies. The firm also introduced a planning software integration with RightCapital.
In a Q&A interview, Brown delved into the structure of Kestra’s advanced planning team and the growing trend of incorporating tax and estate services across the industry.
Strategic Positioning in the Industry
Ranked as the No. 11 firm on Financial Planning’s annual IBD Elite list of the largest independent brokerages in wealth management, Kestra made headlines last year with a recapitalization led by private equity firm Stone Point Capital. Despite being categorized as “midsize,” Kestra boasts annual revenues exceeding $857 million, distinguishing itself as the largest independent brokerage outside the realm of industry giants.
By forging a vendor agreement with RightCapital and appointing Brown to spearhead advanced planning, Kestra demonstrates its commitment to outperforming smaller competitors by bolstering its focus on expanding tax and estate services.
Note: The following email interview has been lightly edited for clarity and length. Brown’s responses have been grouped accordingly.
Insights from Christine Brown
Financial Planning: What is the size and structure of Kestra’s advanced planning team supporting financial advisors and their clients?
Christine Brown: As we continue to enhance the firm’s advanced planning capabilities, our key priority is to scale our team in alignment with the complex needs of our financial advisors. Our current advanced planning team comprises seasoned attorneys and CFPs, ensuring comprehensive coverage of tax law and financial strategy nuances.
FP: With your extensive experience advising ultrahigh net worth families on wealth transfers and estate planning, what drew you to this role at Kestra and its investments in advanced planning?
CB: Joining Kestra Financial as the head of advanced planning felt like a natural progression for me, building on my background of advising ultra high net worth families on intricate wealth strategies. The leadership team at Kestra Financial, particularly John Amore, recognizes the value advanced planning brings to advisors and clients. It’s gratifying to be part of a firm that prioritizes estate and tax planning as pivotal drivers of client outcomes.
FP: How do you perceive the general adoption of estate planning services across retail wealth management, alongside traditional offerings such as portfolio management and financial planning? Do you believe these services are underutilized in the industry, and if so, why?
CB: The industry has been evolving towards embracing estate planning as an integral component of an advisor’s practice. While many advisors recognize the benefits of estate planning discussions in delivering holistic advice and strengthening client relationships, it is not yet standard practice. At Kestra, we emphasize the importance of being a “complete wealth manager,” catering to the diverse financial needs of clients, from portfolio management and financial planning to tax and estate planning.
Expansion and Accessibility of Advanced Planning
FP: How large is the advanced planning team currently, and how will it expand in the future? How can financial advisors access this support, and is it integrated with a direct service team or separate?
CB: Presently, our advanced planning team comprises six dedicated professionals, including specialists from Kestra Insurance Planning to ensure a holistic approach to complex wealth strategies.
The advanced planning team serves as a resource for all advisors within the Kestra ecosystem, collaborating closely with the broader Kestra team. Advisors have the option to reach out to the advanced planning team directly via phone or email, appreciating the level of direct access as a key differentiator in the industry.
FP: Why do you think estate planning services are not yet widely adopted as standard practice in retail wealth management businesses?
CB: One contributing factor could be the associated costs. Estate planning and financial planning experts possess specialized skills, and establishing a comprehensive estate planning offering demands significant investment, which not all firms are willing to undertake. Nonetheless, the returns are evident: fostering enduring client relationships, uncovering additional wallet share through deeper client understanding, and delivering comprehensive wealth planning.
