How to Build Your Planning Team

If you are about to embark on the estate planning process, it is necessary that you begin with a basic understanding of the various professionals that are part of a fine tuned estate planning team.

The first party involved is you. Keep that in mind. You are the boss and the driving force in the estate planning process. Determine your own personal goals and expectations regarding the disposition of your wealth at the inception of the process - before you are overwhelmed by the ideas and suggestions of the professional advisers.

The second member of the estate planning team is the person with whom you establish a relationship built on confidence and trust. Usually, this is the estate planning attorney or the financial planner. This will be the quarterback of the team. He or she will organize the team.

Your estate planning team will consist of an estate planning attorney, an accountant, and a financial adviser. The financial adviser role may be filled by any one or more of the following professionals: Trust Officer, Financial Planner, Insurance Consultant, Stock Broker, and/or Money Manager.

If you do not have a trusted financial adviser to help you assemble a superior estate planning team, then you need to study the estate planning market and find that one person who you determine is best suited to your personality.

The best way to find a good financial adviser is through a referral from someone that you know and trust. If you are new in town and do not know anyone that you would trust with this delicate matter, then you may want to attend one or more of the local estate planning seminars offered to the public. Shopping for professionals in the yellow pages is a hit or miss proposition. Whomever can afford the largest ad may or may not be the professional best suited for your situation.

In your initial interview or consultation with the prospective financial adviser, do not be hesitant to ask a litany of questions, such as, "What are your qualifications?", "How long have you been handling matters or this nature?", "Is this the first estate plan that you have handled?" (Humor does not hurt.), "How are you compensated for your role in my estate plan?", "How does the estate planning process work?", "Who do you recommend that we engage to assist us in this process."

After you have interviewed and selected your estate planning team, you are ready to move forward with the design and implementation of your estate plan.

The attorney is responsible for educating you on the legal issues and the tax and non-tax options available in your particular plan. He or she will draft the estate planning documents necessary to implement the plan.

The Financial Adviser is responsible for educating you on the financial aspects of your estate plan, including the preservation and growth of your estate. He or she will assist in the implementation of the estate plan. This includes the funding or retitling of assets required to meet your estate planning goals.

The accountant is responsible on an ongoing basis to point out the income tax (as well as the Florida Intangibles Tax) aspects of your estate plan. Keep in mind that the income tax is not the same as the estate and gift tax. The first is a tax on the accumulation of your wealth, while the later is a tax on the transfer of your wealth to another person.

The net result of working with a team of professionals, as opposed to one person who handles everything, is that each participant brings his/her specific knowledge and expertise to the table. The synergy (i.e., the whole is greater than the sum of the parts), will provide you with a superior estate plan which in turn may save your family a great deal of money over time.

Invest your time and money wisely in this process and you will be well satisfied with the outcome. One last point, please do not procrastinate (we all do it); this is too important to wait until the company goes back up north.

Good luck!