Estate planning encompasses many legal and financial matters. The proper use of wills and trusts must be considered, as must the tax consequences of any decision. Advisers who want to succeed in this field must be familiar with forms of business organizations, estate taxation, and the proper use of life insurance and other financial assets. All told, there is far more to estate planning than any one person, in any profession, can perform. As a result, the concept of an estate-planning team has developed.
There is a practical reason for advisers to approach estate planning from a team perspective. Advisers are reminded, of course, that legal and accounting advice should only be rendered by individuals with the proper authority to do so. Therefore, while you play an essential role in your client's estate planning team, you will likely find yourself working with the client's attorney, accountant, and maybe even a bank trust officer.
Here is a review of the basic role each team member plays in the estate planning process:
- Agent
– The agent typically helps identify the need for estate planning, helps to pull the estate planning team together, and offers advice and recommendations regarding life insurance and other financial products that may play a role in the estate plan.
- Attorney
– The client's attorney is responsible for answering legal questions, and for drafting legal documents, which can include wills, trusts, and buy-sell agreements. Usually, the attorney is the first person brought into the team by the agent or client.
- Accountant
– The client's accountant may be asked to provide financial information and to determine how different estate planning alternatives will impact the client's financial and tax situation.
- Trust Officer
– When a trust is included in an estate plan, a bank trust officer is frequently asked to serve as trustee. In some cases, bank trust officers are also named to administer the entire estate.
