Building an Estate Planning Team
To create an estate plan that serves your unique needs and that will execute your
wishes as to the distribution of your assets is an important and, often, a complex
task. It’s likely that you will need the assistance of skilled advisors from a variety
of disciplines. Advisors who can employ the latest and most appropriate strategies
and techniques available under current law to fulfill those needs.
Such professionals usually have honed their skills in their own specific fields.
Sound estate planning is built upon a multidisciplinary approach. Each advisor that
you choose should be able to form cooperative relationships with others and work
together as a team to shape and implement your estate plan.
Benefits of the teamwork approach
One of the most important considerations in employing an estate planning team is
to put each of your advisors on the same page, so to speak. When advisors act and
advise independently of each other, they run the risk of working at cross purposes
or with different agendas, according to Dr. Daniel G. Worthington, cofounder of
the Family Bank Design Center and Joseph J. Bilello of the Avanti Financial Group
in an article in the journal Trusts & Estates.
Just looking at individual pieces of a client’s circumstances may lead to a recommendation
that is inappropriate when viewed from a broader perspective, they note. “Independent
advisors who have the skill to work effectively in a team environment can enjoy
the powerful benefit of other team members’ strengths, while contributing their
own experience to the quality of the work. This synergy,” they conclude, “not only
adds tangible value to the planning process, but also makes the experience educational
and enjoyable for the clients and family members involved.”
Virtual teamwork
The concept of working as a team might, at one time, have meant that your team met
face to face—something that was often difficult to arrange given busy schedules,
not to mention the potential for additional time and expense when significant travel
was necessary. With the use of today’s technology—teleconferencing, e-mail, access
to networking to exchange documents, virtual teamwork is more the norm.
Virtual teamwork is one of the key principles in a values-based estate plan, according
to Scott C. Fithian. In Values-Based Estate Planning: A Step-by-Step Approach to
Wealth Transfer for Professional Advisors, Fithian posits that transferring one’s
values and ideals is an important part of a legacy. In other words, what children
and grandchildren should inherit should be not only stocks and bonds, but also cherished
goals and beliefs for which they should strive—for example, recognition of one’s
heritage; respect for family traditions; the need to contribute to the community
and the world at large.
In values-based, as well as more traditional estate planning, virtual planning teams
are likely to be less permanent and less formal than teams of the past. But even
so, advisors are still capable of banding together to meet a specific goal—to solve
a client’s particular planning needs, fitting together, says Fithian, in the way
that pieces of a puzzle do.
But will the team work together harmoniously?
Fithian addresses this potential problem by discussing the work of Dan Sullivan,
founder and president of The Strategic Coach, Inc. Sullivan says that advisors should
be chosen for their unique ability—a one-of-a-kind, extraordinary skill that improves
continuously. Building a successful team requires aligning the right combination
of unique abilities. The best approach, says Sullivan, is to focus on the necessary
skills that must be brought to the planning process rather than on a combination
of particular people. Identifying and combining unique abilities is critical to
building a truly effective team.
Team members, for now and later
A multidisciplinary team approach is likely at some point in time in the estate
planning process to consist of an attorney, accountant, trust officer, investment
manager, insurance agent, financial planner and individuals associated with charitable
giving, perhaps even, in some cases, your heirs.
Most, if not all, of these team members will continue working together after your
death. Some will begin to serve only after your death—most particularly, your executor
and the trustee of a testamentary trust (a trust in your will).
One of the key benefits of choosing a corporate fiduciary to settle your estate
and serve as a trustee is the ability to serve as a team leader. When we serve as
a corporate fiduciary, either as an executor, a trustee or both, we draw upon the
years of experience possessed by the professionals within our four walls, who, in
many instances, have been working as a team for years. What’s more, we have worked
with a wide range of professionals in the estate planning community. If you wish,
then, we can serve as a valuable resource in building the estate planning team best
suited to your circumstances.
Because a trustee is dependent to a great extent on the actions taken by your executor,
it is often recommended that one party be chosen to perform both jobs. Although
there are distinctions between the tasks of an executor and trustee, in many areas
their functions merge. In some cases an executor’s decisions will have a bearing
on the operation of your trust and the actions that your trustee will or will not
be able to take. These factors, plus the continuity brought to the estate settlement
process, make combining the two responsibilities worthy of your consideration.
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