1. Accountant
The accountant ensures that the estate plan is financially sound and tax-efficient. The right accountant will:
- Help minimize estate taxes and income taxes during both lifetime and after death.
- Advise on strategies for tax-efficient transfers, such as using tax-exempt gifts, trusts, and charitable donations.
- Assess the financial impact of estate planning decisions and ensure compliance with tax laws.
- Advise on how to structure assets to avoid unnecessary taxation (e.g., considering the step-up in basis for capital gains).
2. Attorney
The attorney drafts the legal documents and structures the estate plan. A dedicated attorney will:
- Create the essential documents such as wills, trusts, and powers of attorney.
- Help with setting up trusts (e.g., revocable or irrevocable) to manage how assets are passed on to heirs.
- Ensure that all legal aspects are considered, including state laws, probate processes, and potential family disputes.
- Advise on estate administration and guide the executor or trustee through the distribution process.
- Establish guardianships or conservatorships for minor children or dependents, if necessary.
3. Investment Advisor
The investment advisor manages the assets in a way that aligns with the estate plan’s long-term goals. An ideal investment advisor will:
- Provide guidance on the financial goals of the estate, such as growing wealth, ensuring liquidity for estate taxes, or preserving assets for heirs.
- Advise on the optimal asset allocation and risk management strategies to sustain the estate over time.
- Help with selecting investment vehicles that fit the goals of the estate, including retirement accounts, insurance products, or real estate.
- Ensure that investments are structured in a way that minimizes estate and income taxes, in coordination with the accountant’s strategies.
Is your 3-legged stool up to par?