Charles Schwab revealed Wednesday that it has made a minority investment in the estate planning platform Wealth.com.
The terms of the investment have not been disclosed, but Schwab’s aim is to help Wealth.com “continue to scale” its capabilities to make it easier for financial firms and advisors to provide estate planning services to individuals and families.
The two firms are also developing opportunities to offer access to Wealth.com’s estate planning tools directly to Schwab’s clients, according to the announcement.
Advisors use Wealth.com’s artificial intelligence-backed platform to help clients optimize their estate plans or give clients without an estate plan the ability to immediately create legal documents, including wills and revocable trusts.
Wealth.com CEO Rafael Loureiro said in a statement that the support from Schwab amounts to “more than an investment.”
“It’s the foundation for something much bigger,” he suggested. “Together, we’re reimagining estate planning at scale — delivering modern tools that empower advisors, elevate client outcomes and redefine what’s possible in wealth management.”
“Investors want to conduct more of their financial lives in one place, and advisors are increasingly looking for tools and platforms that enable them to scale their business and grow,” added Rick Wurster, president and CEO of Charles Schwab Corp.
“Wealth.com is an important first step in building out a support ecosystem for our advisor clients as they respond to investors’ needs,” he added.
The arrangement comes about six months after Wealth.com secured $30 million in new funding led by GV, the venture capital arm of Alphabet formerly known as Google Ventures.
Other participating investors include Citi Ventures, Outpost Ventures (an investment platform of Neuberger Berman), 53 Stations (supported by the Pritzker Organization) and Firebolt Ventures (headed by technology investor Gokul Rajaram).
Speaking previously with ThinkAdvisor, Wealth.com executives said the funding would be used to “keep pushing forward in the years ahead” in terms of new services and greater support for advisors, including through the ongoing introduction and refinement of AI-based tools and services.
Wealth.com also recently announced a partnership with Cetera Financial Group that will provide its 12,000 advisors with more advanced and efficient estate planning capabilities, as well as a new data integration with the eMoney financial planning platform.
Credit: Bloomberg
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