(ARA) – When it comes down to the reality of mapping out the details of your personal estate distribution plan, you can choose the “track and field” approach or the “basketball” method. Both will get you to the finish line, but the basketball model will put you ahead of the game.
In the track and field game plan, one financial advisor recommends you get a will. This advisor might refer you to one or more attorneys to do the work, but then drops out of the planning process. This is a lot like a team relay race – one advisor starts the race, but hands you off to the next in line as his leg of the project is finished. The next advisor performs his specialty and then passes you along to advisor number three, and so on.
The problem with this system is that none of the advisors are individually versed in all the possible techniques, concepts or products you might need for a complete plan, so you don’t get the best possible result for your efforts or the best value for your money. In addition, there is no feedback from the other professionals regarding the final plan.
Wouldn’t it be better to work like a basketball team? This way the whole team is on the floor (around the table) at the same time and can pass the thoughts, concepts and techniques back and forth. As play continues, the coach (you), can give directions, call the plays, see and hear the whole game from the perspective of viewing all the players at once to better manage the final result. Also, your professionals will get to know one another, so they can do a better job for you when your plan takes over. You won’t have to deal with an unknown person in some firm’s back office. If you don’t have eyeball contact with your planners, how can they really know you or help you determine your real dreams, desires and intentions and then write it down in proper legal language?
You will want help finding ways to be both equal with and fair to your family members; however, there are some personal assets you want to keep in the family that are not easy to divide up.
There are a variety of techniques your planners will know that will allow you to reach your desired goals. Deciding which technique to use depends on the type of property you own and the team’s knowledge of you.
Who are the possible players on your team? A state Certified Estate Planning (CEP) attorney or an Estate Planning Law Specialist (EPLS); a CPA (Certified Public Accountant) practicing in the estate planning area; a CLU (Chartered Life Underwriter); a CFP (Certified Financial Planner); a ChFC (Chartered Financial Consultant); a Trust Officer; and an Accredited Estate Planner (AEP) are among the professionals you should consider.
How many of these pros do you need on your team? That depends on the size, type and value of your property as well as the makeup of your family. Your team members can help you determine this number. If you are concerned about the cost of this team, ask about the savings in family discord, estate taxes and reduction in costs of administration of your estate, because you took the time to get it done right.
For more information on the National Association of Estate Planners & Councils (NAEPC) or to find an Accredited Estate Planner (AEP) near you visit www.naepc.org or call toll free (866) 226-2224 for suggestions.
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