Welcome to the second part of a six-part series focused on building a comprehensive estate plan designed to protect you and your heirs for many generations to come. If you missed Part 1, click here to access the article.
Part 1 - Building a Road Map for Estate Planning and Financial Success
Part 2 – Building Your Estate Planning Team
Part 3 - Risk Management
Part 4 - Core Documents and Essential Components to a Comprehensive Plan
Part 5 - Customization of Trusts
Part 6 - Legacy Component
Part 2 – Building Your Estate Planning Team
Building a competent team to guide you during the estate planning process will be critical to your success. It is essential to have a proactive team that works to design, implement, monitor, and modify your plan from time to time. Building the “perfect” team is an evolutionary process that is not always linear and will vary throughout the years.
Where do you begin when building your team?
Start with the advisors you trust and that you feel most comfortable communicating your needs. Style, personality, and credentials are critical when finding the right fit for your estate planning team.
How do you know if your advisor is appropriately credentialed?
To start, you can review their bio online. Various rating organizations and companies track advisor’s performance, credentials, and complaints. While credentials such as CFP and LL.M. do not tell you if someone is a good advisor, it does indicate that they have the minimum competency necessary to address one’s estate plan.
Another way to test your advisor’s competency is to ask other leaders in their respective fields and ancillary fields. For example, an excellent CPA will most likely know personally or have the wherewithal to determine a legal tax advisor’s competency.
A well-rounded estate planning team should include the following credentialed advisors:
Lawyer
Trust and estates attorney - Board certification is a bonus. LL.M. in tax or estate planning is another bonus. Experience is just as crucial as these designations.
Accountant
CPA - an accountant does not need to be a CPA, but they should have extensive years of experience or collaborate with a seasoned professional.
Financial Advisor
CFP - There are numerous advanced degrees and designations for financial advisors. A CFA is one of the top advisors as the course work is mind-boggling and can be challenging. Many firms have a combination of various advisors with different strengths. The CFP is typically a very well-rounded advisor. Whereas, the CFA (who may also be a CFP) is often much more analytical with respect to portfolio construction and implementation.
Life Insurance Agent
While there are credentials in this area such as CLU (chartered life underwriter), often you will find that agents have more on the job training based on the ever-changing insurance landscape (with the introduction of new products each year).
Property and Casualty Agent
To enter this arena, you must take a 200-hour course and pass an exam. Rarely do the agents have these specific designations. The key here is finding a great company with agents who are very thorough and personable. Among those will also be specialists that concentrate on the high net worth clientele.
Trust Officer
The selection of a trusted person or company to manage your estate often is a professional trustee who works for a trust company. A trust company is a team of sophisticated advisors who handle most of the significant management responsibilities.
Ideally, your initial team of advisors will be in it for the long haul. However, as your needs change and your plans pivot, it is perfectly acceptable to refresh your team with new members who specialize in your needs. It has proven invaluable to have a team of professionals who can listen well, communicate effectively, and keep your abreast of opportunities and changes as your plan for your future.