Finding the Right Estate Planning Professional

Introduction: Why Work with an Estate Planning Professional?

As you approach retirement age and begin considering your legacy, estate planning becomes an essential process. Ensuring your assets are properly distributed according to your wishes requires professional guidance to navigate the complex world of trusts, wills, and tax implications. Working with a qualified estate planning professional can provide you with peace of mind knowing that your affairs are in order.

While there are online resources and software that can assist with basic estate planning, retaining a human expert is strongly recommended, especially if you have a high net worth, own a business, or have a complicated family situation. A professional can ensure your plan is comprehensive, legally sound, and tailored to your unique circumstances.

This article will help you determine what type of estate planning specialist is right for you and how to find and select a qualified professional to guide you through this critical process.

Estate Planning Professionals: Understanding the Different Types

While the terms are sometimes used interchangeably, there are distinct differences between the various professions that provide estate planning services. Here are the key types to be aware of:

Estate Planning Attorney: These licensed lawyers specialize in estate law and can handle the full range of estate planning needs, including drafting wills, trusts, powers of attorney, and handling probate matters. They provide legal advice to ensure your plan complies with state laws.

Financial Planner: Credentialed financial planners focus on protecting your assets and managing your wealth, including tax planning strategies, insurance analysis, and investing guidance related to your estate. They often work in conjunction with estate attorneys.

Bank/Trust Officer: These professionals, employed by banks and trust companies, administer and manage trusts and estates according to your documented wishes after you have passed away.

Accountant: Certified public accountants (CPAs) can provide tax advice and ways to minimize estate taxes as part of the planning process and ensure proper filing of returns.

For most situations, an estate planning attorney is considered essential to draft the core legal documents of your plan. Other professionals are typically engaged in a supplementary role based on your specific needs and net worth level.

Evaluating Credentials and Experience

When vetting potential estate planning professionals, their credentials and experience level should be top priorities. Here are some key factors to consider:

Licenses and Designations: Make sure any attorney, financial planner or accountant you engage is properly licensed to practice in your state. Additionally, look for professionals who hold advanced credentials like a JD for lawyers, CFP for financial planners, and CPA for accountants.

Years of Experience: While not a prerequisite, aim for professionals who have at least 5-10 years of direct experience in estate planning. More seasoned experts will have deeper knowledge and be very familiar with nuanced scenarios.

Area of Specialty: Ideally, you want someone who focuses specifically on estate planning as their area of specialty rather than just one small part of their practice. Specialization signals higher proficiency.

Professional Reputation: Check for professional memberships and accolades that signal peer recognition. Online reviews can also provide insights into a professional's reputation and client satisfaction.

Evaluating credentials fully allows you to have confidence that you are working with a knowledgeable, reputable expert on your important estate matters.

Services Provided by Estate Planners

While the specific services provided can vary based on the professional's specialty, generally estate planners offer a comprehensive suite of services:

• Will and Trust Drafting: A core offering is drafting wills, revocable and irrevocable trusts to dictate the distribution of your assets per your wishes.

• Power of Attorney: Creating durable POAs for financial matters and healthcare decisions if you become incapacitated.

• Asset Protection: Structuring ownership and implementing strategies to protect your assets from taxes and creditors.

• Beneficiary Planning: Guidance on naming beneficiaries, setting up accounts like 529 plans, life insurance analysis.

• Estate Tax Planning: Strategies and tools to minimize estate taxes through lifetime gifts, trusts, and charitable donations.

• Business Succession: For business owners, planning the future ownership transition of the company.

• Probate Support: Handling the court-supervised process of transferring your assets to heirs after death.

The precise mix of services will depend on the complexity of your estate and your unique personal and financial situation. Quality estate planners take a comprehensive approach.

Determining Your Specific Estate Planning Needs

To find the right type of estate planner, you first need to assess what level of services you require based on your unique situation:

• Basic Planning Needs: For more straightforward estates with just primary assets like a home, investment accounts and life insurance, an estate attorney may suffice for core documents.

• Tax Planning Emphasis: If you have a high net worth or expect to have a taxable estate, then a financial planner and tax specialist should be part of your team.

• Business Owner: If you own a company, corporation or partnership, then legal guidance on business succession is critical from an attorney or financial planning team.

• Blended Family: With complex family situations involving children from multiple marriages, an estate attorney is recommended to properly draft documents and trusts to reflect all beneficiaries.

• Special Needs Planning: For loved ones with disabilities, a specialist can help incorporate trusts and provisions for supplemental care.

The scope of your assets, family dynamics, tax situation and goals will determine if you simply need a core estate attorney or a team of complementary professionals.

What to Expect From Fees and Costs

Estate planning services require you to make an investment, but the specific costs can vary substantially based on the professionals involved and complexity of your situation:

• Attorneys: Most estate attorneys bill hourly rates of $250-600/hour depending on experience level and location. For basic estate document drafting, many offer flat fees ranging from $1,000-$5,000.

• Financial Planners: Common pricing models include hourly rates of $100-400, flat fees, or asset-based annual fees around 1% of your portfolio.

• Enrolled Agents/CPAs: Tax-focused specialists may charge hourly rates of $100-300 or flat fees of $1,000-$3,000 for tax planning and return preparation.

• Estate Settlement: For settlement of an estate after death, costs are often calculated as a percentage of the estate value, common fees range from 2-7%.

While the investment can be substantial, consider that proper estate planning can minimize taxes and protect assets, easily justifying the costs in the long run. Be sure to understand pricing structures upfront.

Interviewing and Selecting the Right Professional

Once you have sourced and vetted qualified estate planning candidates that appear to fit your needs, the final step is an in-person or video consultation to gauge if there is a good rapport:

• Be prepared: Have your financial statements, asset information and any initial questions ready to have a productive discussion.

• Evaluate expertise: Assess if the professional seems knowledgeable about your specific situation and openly communicates the scope of their abilities.

• Check their process: Understand their full service model and process for developing and implementing an estate plan.

• Discuss costs upfront: Get fee estimates and cost structure details to align on budgeting and avoid surprises.

• Consider the rapport: You will be sharing very personal details, so clear communication and connection is key for a trusting relationship.

With an open and honest discussion, you can get a true sense if this is the right professional advisor to place your trust and plan into their hands moving forward.

Making the Most of the Professional Relationship

Once you have selected and engaged an estate planning professional or team, the journey is just beginning. To maximize the relationship and investment:

• Be prepared for meetings: Have an updated list of assets, account information and any new personal circumstances to review. Thoroughness upfront leads to a better tailored plan.

• Ask questions: Do not hold back on getting clarification. The more you understand, the more confidence you can have in the recommendations.

• Follow through on action items: Your professional will provide specific guidance on next steps like updating beneficiaries, document execution, titling of accounts, etc. Making those changes is critical to your plan's success.

• Schedule regular check-ins: As laws, assets and life situations evolve, so should your estate plan. An annual or bi-annual review is highly recommended to ensure it stays current.

• Introduce other key stakeholders: Your professional should meet relevant parties like executors, trustees, adult children or beneficiaries.

With mutual engagement and commitment, your estate planner becomes a long-term partner in developing the right strategies and executing effectively on your wishes.

Wrapping Up: Taking the Next Step

The process of estate planning can feel intimidating and complex, which is precisely why retaining professional guidance is so valuable. By following the tips in this guide around evaluating specialties, experience levels and compatible rapport, you can confidently select the right advisor or team to safeguard your assets and ensure your final wishes are properly carried out.

With a qualified estate planner, you gain a long-term partner fully versed in mitigating risks, maximizing tax advantages and implementing protective strategies - a prudent investment for passing on your life's work to future generations.

The next step is simply taking action to interview a few candidates. Even just an initial discussion can provide helpful insights and a sense of which professional is the ideal fit to navigate this essential process with you.