The Widow Who Wants to Fire the Advisor
David has managed the Hartley family account for 14 years. Robert Hartley died eight months ago; his widow Elaine, 71, is now sole trustee of a $3.2 million revocable trust and beneficiary of a $900,000 IRA. Robert made all financial decisions. Elaine has asked twice for a meeting to 'understand what I own,' and David has sent statements but not met her. She now says she is interviewing another advisor. David's fee is 1.1% on the trust and 0.9% on the IRA. Elaine's daughter, who lives nearby, is pushing for a change and has power of attorney for health care only.
1. Diagnose the relationship failure and identify what David must do immediately.
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The failure is not performance; it is the absence of a relationship with the surviving decision-maker. For 14 years the advisor served Robert, and the engagement was never transitioned to Elaine. She is now sole trustee with legal authority over $3.2M and has received documents but no explanation, which reads as being managed rather than advised. David should request an in-person meeting within days, not weeks, and come prepared to walk through holdings, fees, and the trust's purpose in plain language. He should acknowledge the gap directly rather than defend his record. He should confirm Elaine's role and authority, clarify that the daughter holds only a health-care proxy and is not a decision-maker unless separately authorized, and ask Elaine what she wants the money to do. Retention is possible only if he converts from Robert's advisor to Elaine's advisor.
2. Elaine asks whether she should move the account. What framework should the advisor offer, and what conflicts must be disclosed?
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The advisor should give her a decision framework rather than a sales pitch. Useful criteria: Does she understand the current portfolio and fees? Is the advisor responsive and willing to meet her, not just her late husband? Is the plan aligned with her goals, risk tolerance, and income needs? What would a transition cost in taxes, fees, and disruption? On fees, 1.1% of $3.2M is about $35,200 and 0.9% of $900K is about $8,100, roughly $43,300 annually; she should compare that to services actually received. David must disclose his own conflict in retaining the account and avoid disparaging competitors. He should also flag that the IRA beneficiary and trust titling should be reviewed, since a surviving spouse has options a non-spouse does not. The advisor's job is to make the comparison honest, including the case for leaving.