WHO SHOULD I INVITE TO MY FIRST ESTATE PLANNING MEETING?
For some, estate planning is a deeply personal and private event. However, in reality, estate planning is a coordinated effort among several professionals, the client, and even the beneficiaries. So, who should you invite to your estate planning meeting?
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(Related Post: Why You Should Discuss Your Estate Plan with Your Family.)
As an estate planning attorney I meet with hundreds of people about their end-of-life planning. The client(s) and I discuss assets, family dynamics, taxes, objectives, and beneficiaries.
(Related Post: What should I know for my first estate planning consultation?)
We discuss different strategies to achieve different goals. And, we even discuss avoiding probate, preparing for long term care costs, or Medicaid planning.
(Related Post: Why Might I Want to Avoid Probate?)
All of these subjects are complex with a number of variables. They have income, investment, tax, and family consequences that are unique to you. For that reason, I never recommend using online form generators and instead recommend that everyone meet with an attorney to prepare their estate plan.
However, in addition to your estate planning attorney, several other professionals in your life might need to be privy to your estate plan.
IMPORTANT PROFESSIONALS TO INCLUDE IN YOUR ESTATE PLANNING
FINANCIAL ADVISOR
Did you know that a fair amount of estate planning is actually beneficiary planning? For most modest estates, most assets can pass to children, charities, loved ones, or friends with simple beneficiary designations.
Do you want to make a donation to your local church? Add them as a beneficiary on your brokerage account.
Do you want to set up a trust for your grandchildren’s education? Maybe naming the trust as a beneficiary of your IRA is right for you.
Although many people like to believe that attorneys have some sort of wizarding powers, none of these beneficiary changes happen without the help of your investment advisor (unless you manage your investments yourself, of course).
Your attorney might be able to get a lot more of the information that he or she needs to complete your estate plan if you invite your investment advisor along for the consult. I often welcome advisors, managers, and other financial professionals into my estate planning meetings. Together we are able to better achieve our clients’ goals.
TAX ACCOUNTANT
Although most estate and inheritance taxes have been effectively repealed, your estate might have a number of exceptions.
Federally qualified accounts such as IRAs, 401ks, and 403bs have unique and ever-changing rules thanks federal regulation and to the SECURE ACT.
Additionally, your small business might generate a fair amount of income or sales, and your tax consequences might differ from the standard estate.
Therefore, I recommend that you invite or at least advise your tax accountant of your estate plan. Your CPA or other trusted tax advisor can let you know whether you may need to make extra provisions or concessions in your estate plan to achieve your goals.
Further, your CPA may need to file against your lifetime exclusion, prepare gift tax returns, or advise on other matters depending on your estate plan.
FIDUCIARY
Every well-rounded estate plan should include some sort of Power of Attorney. Thus, at a minimum you will be appointing an attorney-in-fact.
(Related Post: Important Considerations for Naming Your Attorney In Fact)
However, more likely than not, you are going to name a personal representative, multiple attorneys in fact, a trustee, a guardian, and potentially other fiduciaries. The people you entrust with your assets, your business, your health, or your children need to know their responsibilities.
Consider whether the person or people you choose to serve as a fiduciary in your estate plan need a chance to ask questions and understand their role. It might be important to invite him, her, or them to your estate planning consultation so that they know what to expect when you are gone.
(Related Post: Important Considerations for Naming Your Personal Representative)
OTHER IMPORTANT PEOPLE TO INCLUDE IN YOUR ESTATE PLANNING
SPOUSE
For most people, estate planning is done hand-in-hand with their spouse. However, for others, especially those with a blended family, estate planning can be a touchy subject.
(Related Post: Silly Parents, Pre-Nups Are for Kids)
However, did you know that you have certain obligations to provide for a spouse after death if you don’t have a pre-nup. Did you know that your spouse might even be able to invalidate or take against your will if you don’t include him?
Your spouse is a vital part of your estate plan, and failing to include him or her might be your estate plan’s undoing. Don’t defeat all of your planning by failing to include or consider your spouse.
CHILDREN?
But…do you want to bring children??? In true lawyerly fashion, I will tell you that it depends.
The child that you appoint as your healthcare representative needs to know that he is the first to get a call from the hospital. Your child who is your financial power of attorney needs to know where you keep the checks, what bank you are with, and whether you have any outstanding debts.
However, the child that meddles in your business, the child who believes that he should receive more than the other children, or the child who argues about all of your decisions, is not welcome.
In fact, I make it a point to exclude all children from estate planning consultations until I am certain that he or she is actually welcome in the meeting.
Whether you invite your children or not depends on your family dynamics. But your attorney will not hesitate to uninvite a problem child from your meeting!
ESTATE PLAN COLLABORATION WITH PROFESSIONALS AND OTHERS
Yes, your estate plan is unique and private to you. However, this does not mean that your attorney can complete your estate plan alone.
Inviting some trusted professionals and even loved ones might make your estate plan more complete. Further, their input and familiarity with your wishes might make your estate plan more effective.
Talk to your attorney about the wisdom of inviting these few people into your estate planning consultation.