Financial Advisors Rush to Register for New Tax-Planning Certification

Financial advisors are rushing to register for a new tax-planning certification, signaling a growing trend in the industry. More than 1,600 advisors have already signed up for the tax planning certified professional designation, set to launch later this year.

The certification, unveiled by Jeffrey Levine at the American Institute of Certified Public Accountants’ Engage conference, aims to equip advisors with the skills needed to navigate the complex intersection of wealth and taxes. With wealth management and accounting firms increasingly merging their services to meet client expectations, the demand for tax-related expertise among advisors is on the rise.

Historically, advisors have shied away from tax-related topics, often referring clients to outside professionals. However, as clients now expect their advisors to provide tax-related services, the need for specialized training in tax planning has become apparent.

The new certification, consisting of three courses administered by The American College of Financial Services, has garnered significant interest from advisors. The courses will cover tax planning during different stages of a client’s life, from accumulation to retirement to estate planning.

Organizers are considering the format of examinations for the certification, with each course costing $995 or $2,695 for all three. The response from advisors has been overwhelmingly positive, highlighting the industry’s recognition of the importance of tax planning in financial advisory services.

With major firms like Cresset Asset Management already offering tax-related services to clients, the focus on “tax alpha” as a key factor in client returns is expected to grow. The new certification reflects a broader trend in the industry, with other professional development initiatives also emphasizing the links between wealth management and taxes.

As the industry continues to evolve, the tax planning certified professional designation aims to become a key credential for advisors looking to provide comprehensive financial advice to their clients. With the support of industry experts like Jeffrey Levine and Michael Kitces, the certification is poised to become a valuable asset for advisors seeking to enhance their skill sets and better serve their clients.