Why Advisors Should Flag Mental Health Risks in Planning

Advisors are trained to think about risk—market downturns, tax changes, asset protection, or family disputes. But one area of risk that often goes unnoticed is mental health. When advisors overlook the impact of mental health struggles on planning, families can face unexpected challenges that jeopardize not just wealth, but also relationships, safety, and well-being.

Mental Health as a Planning Risk

Mental health conditions—whether depression, anxiety, substance abuse, dementia, or suicidal ideation—can dramatically affect how a client or their loved ones manage financial and legal responsibilities. Without proactive planning, these struggles can lead to:

• Disrupted decision-making: A client in crisis may make sudden, impulsive choices that conflict with long-term goals.
  
• Family conflict: Tensions rise when one family member’s challenges create financial or caregiving burdens for others.
  
• Legal exposure: Without safeguards, vulnerable individuals may be at risk of exploitation or mismanagement of assets.
  
• Missed opportunities for care: Failing to plan ahead can mean families scramble for solutions during a crisis rather than having a thoughtful roadmap in place.
  

Why Advisors Should Flag Concerns

Advisors occupy a unique position of trust. You may notice changes in behavior, inconsistent engagement, or strained family interactions before others do. By flagging these concerns:

• You protect the client’s wishes: Plans are more effective when they anticipate vulnerabilities and include protections.
  
• You reduce future conflict: Families are less likely to fight if potential issues are identified early and addressed transparently.
  
• You build stronger relationships: Clients value advisors who see the whole picture and are willing to address sensitive topics with care.
  
• You expand your role as a trusted partner: Spotting risks beyond the financial realm elevates you from service provider to indispensable advisor.
  

How Advisors Can Responsibly Flag Mental Health Risks

1. Observe and Document
   Take note of unusual financial behaviors, disengagement, or concerning family dynamics.
   
2. Ask with Empathy
   Frame questions gently: “Are there any family dynamics or health concerns we should consider in your planning?”
   
3. Collaborate, Don’t Diagnose
   Advisors are not clinicians—but they can encourage families to involve healthcare providers, therapists, or care managers when risks surface.
   
4. Build Protective Provisions
   Recommend estate planning strategies such as trusts with treatment provisions, healthcare directives with mental health considerations, or trusted fiduciary appointments.
   
5. Stay Connected
   Mental health is not static. Ongoing check-ins give advisors the chance to revisit planning as circumstances evolve.
   

A Call to Action for Advisors

Flagging mental health risks is not about overstepping boundaries—it’s about fulfilling your duty as a trusted advisor. Just as you would warn clients about a potential tax liability or investment risk, you serve them best by recognizing and addressing vulnerabilities that could derail their plans and impact their families.

By bringing these issues into the open and integrating them into planning, you not only help preserve wealth—you help preserve dignity, stability, and family harmony.