- Complete an estate analysis.
Sometimes called a "hypothetical probate," this step duplicates the actual probate process. An estate analysis calculates the size of the estate (assets minus liabilities), estimates the estate taxes and other estate settlement costs that will have to be paid, and illustrates the amount remaining for distribution to the heirs.
- Prepare a plan.
With an understanding of the prospect's current situation, you can then review the impact of various planning alternatives on the prospect's estate. Your objective is to consider how various tools and techniques — wills, trusts, gifts, charitable bequests, and buy-sell agreements — can be used to accomplish the prospect's objectives while achieving estate tax savings. If the analysis determines a need for additional funds for estate preservation and liquidity purposes, your plan will include a life insurance recommendation, if insurable.
- Present the plan and close the sale.
The next step is to use the estate analysis to present your recommendations to the client. You generally do this by reviewing the prospect's objectives and current situation, followed by an explanation of your recommendations and how they will better achieve the prospect's objectives. You then close the sale by asking for a commitment to implement the plan.
- Implement the plan.
Once the prospect has agreed to implement the plan, you then handle any new insurance and/or changes to existing policies. If the plan calls for any legal or accounting work, you may coordinate the activities of an attorney, accountant and, possibly, a bank trust officer.
