Estate planning cannot be carried out by only one person. An attorney is great, but he might not know all the tax laws that go into estate planning. Therefore, a CPA is needed. But then your insurance policies might not be accounted for, so you need your insurance agent involved. The list goes on, and many different people are invited into the estate planning process. Before you know it, there are a multitude of people all working to provide guidance for you. With each person bringing a different element to the table, keeping everyone in conjunction is crucial for smooth sailing.
It is important that each professional advisor sees the others as teammates. They are allied because they all have a common goal: helping you. Each person provides different insight, and these insights should be conveyed effectively. Roles of different parties are as follows:
The Accountant:
A CPA is important because they provide insight regarding your business structure or how much you spent on a certain piece of real estate. They can also offer information about tax penalties your beneficiaries might have depending on your estate planning or asset protection planning. Details about what is taxed, how gifts are treated, how to avoid certain taxes, etc. are most reliable coming directly from the accountant. Your accountant can also supply necessary tax returns.
The Banker, Insurance Agent, and Financial Advisor:
These parties supply details about the titles of your accounts or the monetary values and beneficiaries of your life insurance policies. They also keep track of your retirement accounts including information about the beneficiaries and who will receive stipends. Another duty of these parties is to keep an eye on whether or not your Revocable Living Trust is appropriately funded, and the named beneficiaries are up to date and agree with your current estate plan terms.
The Attorney:
Your attorney should be committed to building a relationship with you as well as assisting with legal documents. He also should instruct trustees on how to carry out your plans after you have passed.
Each professional involved should strategize and effectively employ each estate planning strategy together. If there is any discrepancy, the professionals can work it out so that you are not receiving different advice from different parties.
The Family:
Disappointing your family is never easy. Therefore, it should be avoided. Keeping your family in the loop about your estate planning is important for trust and helps to evade challenges in the long run. It is good to inform your family of what you are doing and why you are doing it so that your intent is backed up by you instead of just your financial advisors. That way, if your family has questions or concerns, you can address them and help put everyone at ease.
Not one person can do it all. Ensuring your estate planning runs smoothly is a team effort and requires constant communication. Introduce the various professionals and ensure that each party involved has a system set up to keep in contact with each other. They should not be afraid to contact one another for necessary information. Although a team is necessary, it is beneficial for one of the professional advisors to keep track of the master plan and be your main estate planning contact. Rice Law Group is prepared for and happy to be your main advisor.
Get Help with Your Estate Plan
Rice Law Group specializes in every aspect of estate planning. Work with a New York estate planning attorney who specializes in helping individuals plan for the future. Call us at (212) 944-1180 or fill out our contact form online.
