Introduction
	Six Basic Steps
	1. Initiate the discussion
	2. Take stock of the present
	3. Develop objectives
	4. Choose professional       advisors, a guardian, &       a personal representative
	5. Consider alternatives
	6. Review & modify
	Additional resources
	Evaluation of web site
	Contacts & Credits

 

Step 4. Choose Professional Advisors, a
Guardian, and a Personal Representative    

You will need to choose several advisors. Some of the advisors will be professionals and some will be personal. Think of this step as developing a team of talented players who will help you find the way to reach your goals for your family's well-being. Your team could include: an attorney, a financial planner, a trustee, an executor or personal representative, a guardian, and others.

Professional advisors:
Attorney

• Ask your friends, accountant, banker, and/or financial planner for suggestions.
• After collecting at least three names, make an appointment with each attorney.
• Ask about their background and experience.
• Are you able to communicate clearly with each attorney?
• Discuss fees. Does the attorney charge by the hour, a flat fee, or a percentage of the estate?
• After your initial visits with the three attorneys, consider how comfortable you would be discussing your situation with the person.
• Would your spouse or children be comfortable working with this person when you are gone?
• Ask the attorney how long it would take him or her to complete the process.

For information on referral services from the American Bar Association, go to: http://www.abanet.org/ and click on the Find Legal Help link in the left menu.

Another resource for referrals is the American College of Trust and Estate Counsel. At www.actec.org, ACTEC Fellows are selected on the basis of professional reputation and ability in the fields of trusts and estates and for having made substantial contributions through lecturing, writing, teaching, and bar activities.

Financial Planner
A financial planner will help you to clarify your objectives and suggest alternatives that should be discussed with your estate planning attorney. The financial planning process consists of six steps:

1. Establishing and defining the client-planner relationship
2. Gathering client data, including goals
3. Analyzing and evaluating financial status
4. Developing and presenting recommendations and/or alternatives
5. Implementing the financial planning recommendations
6. Monitoring the recommendations

A resource for selecting a financial planner is the Certified Financial Planner Board of Standards at www.cfp.net. At that site, select Search for a Certified Planner to find a planner in your state. Another resource is the Financial Planning Association at www.fpanet.org. At that site you can find a CFP™ Professional by selecting Public/Find a Planner.

Personal advisors:
Executor or Personal Representative

• An executor makes sure that your wishes are carried out and manages your property until the estate is passed on to your heirs.
• You need to have confidence in the person and know that he or she can be trusted to carry out your wishes.
• According to Steve Weisman, an elder law attorney, two other important qualities for an executor are knowledge of your family and common sense.
• A personal representative is entitled to receive a fee for services. Personal representatives often waive their fee for a family member or good friend. Discuss in advance whether your personal representative will expect to be paid.

This is a Metropolitan Life publication about making a will. It has a good explanation of what executors do. http://www.pueblo.gsa.gov/cic_text/money/estateplan/planning.htm

Guardian

• A guardianship specifies who will have physical custody of your children.
• The first choice for a guardian could be the surviving parent unless death, divorce, or other situations make that choice impossible or undesirable.
• The second choice is a loving member of your immediate family or a loving friend.
• You may want to name a Conservator to handle the decisions about money for the children in addition to the person (Guardian) who has physical custody of the children.

Deciding on a guardian for children is often a challenge for parents. Ric Edelman, a financial planner, has developed a list of questions to help parents choose a guardian. www.ricedelman.com/planning/estate/procrastinate.asp

For more information about providing for children, see Estate Planning for Families with Minor Children, http://msuextension.org/publications/FamilyFinancialManagement/MT199117HR.pdf

Trustee

• A trustee is responsible for the prudent management of a trust's assets in a way to generate income for the beneficiaries and to continue to grow capital.
• He or she must follow state and federal regulations that apply to the trust.
• Desirable qualities for a trustee are investment expertise, integrity, judgment, and the ability to get along with family members.

Durable power of attorney

• This is a person you name to be your representative to perform certain actions if you become unable to manage your affairs. For example, the power of attorney could pay bills, sell securities, or make major financial decisions on your behalf.
• Choose someone you trust completely as your power of attorney.

Health care power of attorney

• This is a person you appoint as a representative to act on your behalf in matters affecting health care, including consenting to health care procedures in the event of your incompetency or incapacity.
• This representative's powers do not become effective until you become incapable of consenting to health care.
• This representative needs to know and understand your wishes.

Make a list of your advisors. (Directions: This will take you to a page that you can use to print and record your information or that you can save as a Word file to record your information.)

• Download and save this worksheet page.
• Download all worksheets. (342KB or 17 pages)

 

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Introduction | Additional resources | Evaluation of web site | Contacts & Credits
Step 1. Initiate the discussion	Step 2. Take stock of the present
Step 3. Develop objectives	Step 4. Choose professional advisors, a guardian,                   & a personal representative
Step 5. Consider alternatives	Step 6. Review & modify
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Disclaimer: This web site is not intended to be a substitute for legal advice or counsel. It is designed to create an awareness of the need for estate planning and to help families become better acquainted with some of the issues involved.