Your Estate Planning Team

Source: AARP.org |  | March 20, 2005

Estate planning is a complex task. To do it right, you may need to seek the advice of more than one expert. Your estate planning team should definitely include an attorney and a tax accountant. Consider including your financial planner in the process. You may also want to call on a life insurance agent who is familiar with estate-planning concepts.

What You Should Know

Your estate planning team should include the following professionals:

Estate Planning Attorney

An attorney is the only person licensed to write legal documents. If you want to draft a will, create a trust, or draft a Power of Attorney, you will need an attorney on your team. Remember that no one attorney is an authority on every aspect of the law. Be sure to find an attorney who specializes in estate planning.

The following suggestions may help you find the right attorney:

• Ask people you know if they can refer you to a good attorney. Friends, business associates, or other professionals (like your financial planner or accountant) may be able to recommend someone.
• Contact your local bar association or other legal association for a list of attorneys who practice in the area of estate planning.
• As a last resort, check the yellow pages of your telephone book. This directory should list attorneys by their area of specialization.

Interview one or more attorneys to be sure you feel comfortable with and have confidence in the person you select. Check first to see if the attorney offers a free initial consultation. During this first meeting, you should find out the attorney's fee schedule and payment expectations. In addition, use this time to discuss what you want to accomplish with your estate plan. This should help you determine if the attorney can meet your needs.

Tax Accountant

Are you concerned about the amount of taxes that your heirs could owe to the government after you die? Then, make sure a tax expert is on your estate planning team. This person can help you figure out what your estate's tax bill will be. He or she can also explore with you the advantages of tax-deferred investments. Keep in mind that federal estate tax laws have changed dramatically in recent years.

Financial Planner

A financial planner will be able to recommend investments that are best suited to your estate plan. This planner should also be able to estimate your pension income and tell you how that income will be distributed after you die. For more information about choosing a financial planner see Financial Advisers.

Insurance Agent

A qualified insurance agent can help you in matters involving life insurance, disability coverage, and other concerns. Be sure to choose an agent who is familiar with estate-planning concepts.

Before choosing your agent, check with your state insurance department to be sure that the agent is licensed in your state. Agents who sell variable products must also be registered with the National Association of Securities Dealers. In addition, life insurance agents may have professional designations that show they have a certain level of expertise. Look for an agent who is a Chartered Life Underwriter (CLU) or Life Underwriting Training Council Fellow (LUTCF).