Finding and choosing advisors

Assembling a Team of Advisors

Depending on the complexity of the estate, you will need to consider working with a team of advisors who will help you to turn your hopes for the future into an estate plan.

  • An estate planning attorney is necessary for an estate of any size

  • An executor is the person you will depend on to see your wishes carried out

  • A financial planner would be included if you have assets invested or intend to establish financial trusts, charitable trusts or other types of annuity programs as part of your estate plan

  • A gift planning consultant from your favorite charity would ensure that any charitable giving intended as part of your estate plan is done effectively.

Finding an Estate Planning Attorney

Hiring an attorney who specializes in estate planning can be very helpful when creating or updating your estate plan. He/she should be the most up-to-date on state and federal laws related to wills, trusts, and taxes and is experienced in using language that will ensure your plan is consistent with all applicable federal and state laws.
 

How to Find an Estate Planning Attorney

  1. Start by getting references and referrals from family members or friends - preferably someone who is in a similar financial situation to your own.

  2. Obtain referrals through your local "estate planning council" (check your local white pages or business directory). If you don't have an estate planning council in your area, you can contact your CPA, financial planner, the trust department at your bank, or the American Bar Association (ABA) at 312-988-5000 and ask them to recommend lawyers in your area who might help prepare your estate.

  3. Access American Bar Association lawyer referral information through their website at www.abanet.org. The ABA website also includes state listings, or you can check the white pages for your state Bar Association.

Questions to Ask an Estate Planning Attorney

Explain to each candidate in advance that you are conducting interviews and ask if there is a charge for the initial consultation. (Many lawyers do not charge for preliminary interviews). Be prepared for your interviews by first completing the Personal Inventory we provided in our previous mailing and develop a list of relevant questions. These might include:

  • How long have you been in practice?

  • Do you prepare a lot of estate plans as part of your practice?

  • How do you work with clients when preparing an estate plan?

  • Will you be handling my plan entirely, or will some of the work be completed by another attorney or paralegal?

  • Given my situation, are there ways I can minimize potential estate taxes and probate fees?

  • Given my situation, how long do you estimate it will take you to prepare my estate plan and at what cost?

Fees

Every estate and family situation is different and there are no standard guidelines that govern the fees for estate planning. However, there are a couple of rules you should follow:

  • Settle on an hourly rate or flat fee — NOT a percentage of the estate

  • Get a written estimate in advance of total costs for the work to be done

In order to get an accurate estimate of fees, set up a meeting with the lawyer to review the details of your family and financial situation and your estate planning objectives. Open and honest communication is critical.

Many lawyers will send a letter of recommendation, outlining the work to be completed and an estimate of the fees. Ask for such a letter if it is not volunteered.
 

Services

Once you have selected an attorney to prepare your estate plan, expect the lawyer to provide you with the following services:

  • Assist you in refining your inventory of assets (such as personal possessions, stocks and bonds, real estate, life insurance, etc.)

  • Help you determine the distribution of your property

  • Advise you on the best vehicles to transfer your assets (such as life insurance, trusts, etc.) so as to minimize estate taxes and maximize what you can provide to loved ones and favorite charities

Finding an Executor

One of the components of a Will is naming an executor. The executor speaks on behalf of the deceased in settling the estate and carrying out the instructions of the Will and/or Living Trust. More specifically, the executor does the following:

  • Collects all estate assets

  • Pays all debts, expenses and taxes

  • Distributes the remainder of the estate according to the Will or Trust's instructions.

You can name just about anyone to be executor of your Will or Living Trust - a family member, friend, attorney, bank or trust company. It's important that the person you name feels comfortable with the financial and legal responsibilities of serving as executor.

In choosing between, for example, a family member or attorney to act as executor, consider the size and complexity of your estate as well as your particular family dynamics. Who you choose as executor should be dictated by the duties that person will perform. While a relative could handle a simple settlement, a complex estate requires the legal and financial knowledge of a lawyer or bank. You might also consider using a combination of personal and professional resources. A relative could manage most of your estate as executor, but may need to hire a lawyer to advise on a few of the more complex issues. Because of family dynamics, many attorneys feel it is unwise to have a beneficiary of your estate also serve as executor.
 

Choosing a Financial Planner

If you have investments, stocks, bonds, or annuities — or want to set up trusts either for your heirs or a favorite charity — it may be important to hire a financial planner to be a part of your estate planning team. The planner will help you assess your financial goals and create a plan to meet your current needs. It is important that you integrate your financial plan into your estate plan — to maximize your financial interests while ensuring a meaningful transfer of wealth.

The way to find a financial planner is similar to the research, referral and interview process used to find a lawyer. For these interviews, your questions should include:

  • What is your area of expertise?

  • How long have you been a financial planner?

  • Are you certified?

  • Will you provide an individualized financial plan?

  • What will your fees be?

  • What do your services include?

  • How will you communicate with me (regular statements, meetings, newsletters, etc.) and how often?

The financial planning industry is not regulated by any government agencies. As a result, you need to be careful about the person's qualifications and experience. The planner you choose should have a background in a related field, such as accounting, insurance, banking or stock brokerage. Look for credentials like certified financial planner (C.F.P.) or chartered financial consultant (Ch.F.C.), which means that the person has taken education courses and passed examinations in financial planning. In addition, the credentials mean that the planner has agreed to comply with that particular group's code of ethics.

The following numbers will help you get started. Call for a list of members in your area:

  • National Association of Personal Financial Advisors: 1-888-333-6659

  • International Association for Financial Planning: 1-800-945-4237

  • Institute of Certified Financial Planners: 1-800-282-7526

  • National Association of Securities Dealers: 1-800-289-9999

Fees

There are three different fee structures for financial planning services: fee only, fee and commission, or commission only. Fee-only compensation includes an hourly rate - anywhere from $100 - $400 per hour - plus an annual fee of 1% - 2% of your portfolio. Fee and commission compensation includes the fees described above, plus a commission on the investments they sell (typically equal to 3% - 5% of your portfolio annually). Commission-only planners get paid when you buy investments or insurance policies from them (again, about 3% - 5% annually).

In general, the fee-only structure seems to work best for the investor, since it avoids the conflict of interest built in to the commission-based fee structure - the planner gets paid when he sells, but it may not be in your interest to buy.
 

Services

Regardless of the fee structure you agree to, you should get good service from your financial planner. That service should include:

  • Investment recommendations to match your investments with your long-term financial goals and objectives

  • Asset allocation to create a balanced portfolio

  • Educating you about the return you can expect based on the risk you're willing to take

  • Keeping in touch with regular written reports and phone calls

  • Evaluating the performance of your investments and judging your progress toward your financial goals

Your Gift Planning Consultant

We'd love to sit down with you and your advisors to discuss how charitable giving could be a part of your estate plan. Please contact Corrine Barr in our Gifts Planning office at (800) 328-0678 or corrine.barr@wdc.greenpeace.org. She'll help to put you in touch with a member of our Gift Planning team.

 

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