Why Estate planning is part of an adviser's best interest duty?

A financial adviser providing personal advice, is required to act in the best interest of their client ( best interest duty- RG 175). The duty and the safe harbour steps apply broadly and holistically when a financial adviser provides advice. Step 8 requires an adviser to “take any other step..that would reasonably be regarded in the best interests of the client, given the client’s circumstances” This arguably includes managing the clients estate planning needs.


The best interest duty, includes a parallel common law duty, that could mean that advisers may be liable for not properly addressing a client’s estate planning circumstances, particularly if they have long standing relationships with their clients and their families. Under the law, professional negligence acts not only includes “acts of commission” but also “acts of omission”. A failure to address your client’s estate planning needs could constitute a breach of your duty of care.


Clients with blended families, families in conflict or non estate assets such as SMSFs need more than a Will service but an estate plan. Inherit Australia’s estate planning facilitation solution helps you manage all of a client’s estate planning needs and to position you as the lead advisor of all of their affairs, during their life and on death.