How to Choose an Estate Planner

Planning for our own death, while critical, is never an easy task. For this reason, it’s crucial to work with an estate planning professional who can offer the appropriate expertise and emotional touch necessary. By finding a high-quality person to assist you, you’ll be more easily able to prepare for what happens to your assets and take care of those you love.

In this article, you’ll learn how to identify and choose an estate planner that aligns with your needs. This includes a breakdown of the most common types of professionals for this service, as well as signs of a high-quality professional. You’ll also learn what to watch out for and avoid as you search for an expert.

Types of Estate Planning Professionals

Estate planning can be a complex process that requires a multidisciplinary approach. For some, planning an estate may only require the help of an attorney to draft important documents, such as a will, advance healthcare directives, or power of attorney (POA). However, this process can also require the expertise of a financial advisor or tax professional, especially when one has a larger estate.

Below is a breakdown of three major types of professionals that assist with estate planning:

Attorneys

Legal counsel is an essential piece to planning an effective estate. According to Alexander Evans, an attorney at Turke and Steil LLP, legal professionals play “a crucial role in the estate planning process by providing legal advice and drafting the necessary documents to ensure that a client’s wishes are honored.” More specifically, an attorney can assist with estate planning elements, such as a will, advance healthcare directives, POA documents, and trusts.

Evans also explains that attorneys help clients “navigate complex legal issues, minimize taxes, and ensure that the estate plan complies with state and federal laws.” In each state, estate tax law can be different. This, coupled with the need to follow federal tax and gifting laws, makes a legal professional an invaluable resource.

Estate planning attorneys can also help you identify beneficiaries and establish trusts. A trust is an arrangement where a trustee holds assets on behalf of the beneficiary. This is a smart way to bequeath assets to individuals without as much of a tax burden. However, they can be complex to establish and, thus, require careful attention to legal and financial details.

Financial Advisors

For many, it’s also important to have a financial advisor by your side to help plan your estate. These professionals specialize in helping you prepare your assets to pass on to beneficiaries. This includes conserving your money throughout your life so that you may pass on as much as you’d like.

Clients often work with financial advisors alongside an estate planning attorney to create trusts, gather documents, and name beneficiaries. In Evans’s words, these experts provide a more “comprehensive approach” to the process. This can be especially helpful to high- and ultra-net-worth clients with more unique needs.

Many different types of financial advisors can assist with estate planning tasks. The following are prominent designations to look for:

• Certified Financial Planner (CFP). These experts specialize in financial planning, including assisting with cash flow, investments, retirement, and estates. Individuals with this designation adhere to a fiduciary duty and must pass a rigorous set of requirements set forth by the CFP Board.
• Chartered Financial Consultant (ChFC). ChFCs are professionals who specialize in advanced financial planning, which includes important areas like retirement, estates, investments, cash flow, and risk management. Individuals with this designation must adhere to a fiduciary standard.
• Certified Estate Planner (CEP). The National Institute of Certified Estate Planners (NICEP) gives this designation to individuals who undertake a multidisciplinary education of the estate planning process, encompassing legal, financial, and tax knowledge.
• Accredited Estate Planner (AEP). The National Association of Estate Planners and Councils (NAEPC) gives the AEP designation to professionals with at least five years of experience within the financial, insurance, legal, accounting, philanthropy, and trust disciplines. Individuals must also devote at least a third of their time to estate planning and have another professional certification, such as a JD, CFP, or ChFC.

Accountants and Tax Experts

For larger estates, minimizing federal and state taxes is crucial to ensure beneficiaries receive as much as possible. Often, this requires the expertise of an experienced tax planner, such as a certified public account (CPA). Like a financial advisor, accountants may work with an estate planning attorney to help reduce or eliminate taxes. Typically, this involves reducing the size of the estate through gifting or by placing funds in a trust.

Red Flags to Watch Out For

When you’re searching for an estate planning professional, it’s crucial to find someone who has your best interest in mind. As you consider different options, you must be aware of signs that someone isn’t the right fit or even worse, unethical or harmful to your finances. To do this, it’s important to carefully evaluate and meet with any interview you plan to hire.

Before meeting with an estate planner, pay close attention to their credentials and the ethical standards they follow. If a person doesn’t make their education and experience known, it may be time to reconsider. In many cases, individuals with prestigious designations, such as a CFP, ChFC, or CPA, must follow a fiduciary duty. Similarly, attorneys must pass the bar and uphold a high level of ethics in their interactions with clients.

Estate planning is a sensitive matter and, thus, should be treated as such by a professional. When you meet with someone, ensure you feel comfortable working with them. If they start to pressure you into anything or come off as disingenuous, you should look elsewhere.

Tips for Finding a High-Quality Professional

Finding the right estate planner requires you to carefully consider your options, as well as your needs. It’s crucial to carefully vet each potential expert you’re considering and ensure they’re the right fit. Below are several tips you can employ to select an estate planner:

• Consider what professional you need. Hiring an estate attorney is typically essential to ensure you draft important documents, such as a will, as legally sound as possible. However, you should also think about whether you require a financial advisor or tax professional to shield your assets from any undue risks.
• Ask questions. When you meet with a prospective expert, don’t shy away from asking questions about them or how their services work. This is also a good opportunity to identify potential red flags, as mentioned in the previous section.
• Get referrals. Asking your friends, family, or other professionals to refer you to an estate planner is a good place to start. They can also recount experiences with a given professional and give you an idea of what you can expect.
• Use public directories. Evans recommends that those seeking an attorney utilize directories like the “American Bar Association or local estate planning councils” to identify professionals.
• Compare prices. Professional help can be expensive, with many charging hundreds per hour for their services. Before selecting a candidate, weigh the costs of going with each, including how much they charge per hour or project.

If you’re looking for a financial advisor to assist with estate planning, we recommend using a free matching tool. After filling out a short quiz regarding your goals and current situation, it’ll present you with a high-quality, vetted option in your area.

Frequently Asked Questions

Do I need an attorney to plan my estate?

An attorney is essential to the estate planning process. They will help you draft and notarize important documents, such as a will or power of attorney. Additionally, it’s common for them to serve as a point of contact for family members, including the executor after you pass away.

Is an estate planner the same as a financial planner?

A financial planner can assist with estate planning, but not all do so. Typically, they specialize in helping you preserve your assets and may assist with placing your funds in a will or minimizing tax liability.

What questions should I ask an estate planner in my initial consultation?

Asking questions is crucial to help you learn more about an estate planner’s services and what they specialize in. In your initial consultation, be sure to ask a professional about what they specifically offer, as well as their credentials and expertise. You should also ask what they charge for their services, including their hourly rate.