When a client dies: an operations checklist for a small RIA
When a client dies, a small RIA should first pause anything that could act on the accounts without authority: place trade holds, review scheduled withdrawals and check how billing should be handled under the agreement. Then confirm who now has authority, such as an executor, trustee or surviving joint owner, from documents rather than phone calls; follow the custodian's process for retitling or transfer; update the household record; and keep a dated log of every step and conversation.
The call usually comes from a son or daughter. They're upset, they're trying to do the right thing, and they want to know what happens next. The advisor's job in that moment is to be kind and clear. The firm's job in the following days is to make sure nothing happens to the accounts that shouldn't, and that every step is written down.
What should happen on the first day?
- Write down the call: who called, their relationship, what they said, the date.
- Place trade holds on the deceased client's individual accounts, with the reason and a review date.
- Review anything scheduled: systematic withdrawals, standing transfers, planned rebalances.
- Note billing for review: check what the agreement says before the next billing run.
- Tell the team, so nobody acts on an old instruction or sends a routine email to the client.
What comes over the following weeks?
| Step | What to record |
|---|---|
| Confirm who has authority for each account | The document received (letters testamentary, trust document, death certificate) and the date |
| Follow the custodian's process | Forms submitted, dates, anything returned not in good order |
| Decide billing per account | Stopped, prorated or continued, and the basis in the agreement |
| Update the household | Members, roles and contacts, with the date each changed |
| Agree next steps with the beneficiaries or executor | Whether accounts stay with the firm, and any new agreement or IPS |
| Lift holds when authority is clear | Who lifted each hold, when and why |
A worked example
Take a hypothetical two-person RIA. A client's daughter calls to say her father has died. The advisor notes the call and places holds on his IRA and individual account that afternoon. The joint account with his wife is noted for the custodian's process. The monthly withdrawal from the IRA is paused with the custodian. At the next billing run the IRA and individual account are excluded from the date of death, as the agreement allows. Three weeks later the executor sends letters testamentary; the firm records them, follows the custodian's transfer forms, and lifts the holds once the accounts are retitled.
What are the common gaps?
- Acting on instructions from a family member without documented authority.
- A model rebalance trading an account nobody remembered to hold.
- A routine review reminder or newsletter sent to the deceased client.
- Billing carrying on because nobody told the person who runs it.
When is this overkill?
It isn't. Even for a small account, the record of who you spoke to and on what authority you acted is worth having.
How Advorra fits
Advorra keeps the household, its members, communications and any trade holds on one record, and billing exclusions sit on each account, so the person running billing or rebalancing sees what's changed. See the product page, or read about putting an account on trade hold and avoiding NIGO paperwork.
One thing to do this week: write your first-day steps on one page and put it where everyone on the team can find it.
An operations checklist, not legal, tax or compliance advice. Follow your advisory agreement, your custodian's process and the family's attorney on estate matters.
Questions advisors ask
Can I keep trading the account?
Authority usually changes when an account owner dies. Pause discretionary trading on the deceased client's individual accounts until you've confirmed who can instruct you and on what basis. Your advisory agreement and custodian's process apply.
Should I keep billing?
Check your advisory agreement. Many firms stop or prorate billing from the date of death on affected accounts. Record whatever you decide and why.
Who do I talk to?
The person with documented authority: an executor, trustee, or a surviving joint owner, depending on how each account is titled. Ask for the documents before acting on instructions.
What about joint accounts?
A surviving joint owner may have authority over a joint account once the custodian has processed the death. Follow the custodian's steps.
Is this legal advice?
No. It is an operations checklist. Estate questions belong with the family's attorney.
See it on a demo firm
Advorra is practice software for independent RIAs: clients, models, IPS, billing and compliance records in one place, on top of the custodian you already use. Built by The CollabHub.
Get in touch