bonus: sample asset distribution worksheet.
by ed mendlowitz
the 卡塔尔世界杯常规比赛时间 practice doctor
estate planning is a vital service for many clients who do not have a will or a current will, or who have a will but did not consider major estate planning techniques.
more on marketing: 28 data points for a financial planning discussion | every client can use financial planning | four reasons to perform tax projections | four additional services to suggest
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we have found that many clients with wills had them hurriedly prepared just before a trip or vacation and had very little planning guidance.
we also have many clients with young children without wills, or clients with grandchildren whose children do not have wills. you can perform a great service for them by “pushing” them to get proper wills prepared.
many people associate estate planning with trying to reduce eventual estate taxes. that is a major reason for estate planning, but not the only reason and certainly not the most important in many situations. a young family with an infant child’s most important estate planning move would be to choose a guardian and plan how they will be compensated, which can be incorporated into an easily prepared will. in the united states very few estate tax returns have taxes paid with them.
the issue is providing for a family’s financial security and comfort, and a successful easing into a new lifestyle without a loved one. getting a client who does not have a will to execute one can be one of the most fulfilling services you can perform.
your role is that of an advisor. an attorney will have to prepare the will and any trust agreements, and also provide some guidance and advice.
who needs this service
identifying clients who need estate planning services can be as simple as asking clients if they have a current will when you work on their tax returns. our experience shows us that most clients need some sort of estate planning at almost all times.
why the accountant is suited to offer this service
the accountant is generally aware of
- a client’s family situation,
- their wealth and
- some of the intergenerational financial dynamics.
that knowledge combined with a technical background in basic estate planning techniques can place the accountant in an excellent position to advise the client on getting started to seriously consider how to pass on what they accumulated to their family in the most propitious and low-cost/low-tax manner. also, the accountant can easily inquire and find out about eventual estate assets such as life insurance and potential inheritances by the client.
introducing the client to the service
after the client identification process, you should call them with some reasons why they should meet with you to discuss their situation further. we do not charge for the initial information given when we meet with them to get their tax data, nor do we charge if we mention some ideas when they pick up their tax return, or what we tell when we call them to tell them they should schedule a consultation with us. but we do charge for the specific consultation, and any followup meetings and phone calls.
there are some very simple questions you can ask to lead the client into seeking your guidance. the questions are:
- do you know the importance of having a will?
- do you know how to leave funds for your children?
- do you know how life insurance affects your estate?
- do you know what income in respect of a decedent is?
- do you know there is an alternative to a will?
- do you know how a family asset protection trust might benefit you?
- do you know how to use a will to choose a guardian for your children?
after some of these preliminary questions and a brief discussion, we follow up with a fact sheet with more answers, and then a call suggesting an initial consultation. we have found that we can generally advise about 75 percent of our clients with a single meeting. the other 25 percent need additional services and meetings leading to about half of them signing up for a full estate plan. this is a pattern that applies to most of the additional services flowing from our individual tax clients.
estate planning is not as high volume a business as some of the other services. the individual fees are substantially higher than for other services, but we also have a higher number of the initial consultations because of the universality of the concern, of previous lack of attention, to wills and organizing of “final” affairs.
just start the discussion, or probing, by asking clients whether they’ve provided for guardians for their children and for adequate funds to maintain their present lifestyle for their family members.
discuss items currently in vogue to let your client know you have not overlooked them and that you are familiar with those current tools or gimmicks. right now these include living trusts, ira rollovers, 401(k)s, charity remainder trusts, family limited partnerships, valuation adjustments and defective trusts.
to get the client to recognize the value of the service, you can prepare a simple asset distribution and estate tax calculation worksheet. when working with the client to fill in the worksheet, use estimated amounts. at this stage, you do not want to get hung up with exact details. the final amounts will be different. you can add categories or expand on what is shown in the exhibit.
we consider the worksheet a client service as well as a marketing tool. the client gets specific usable information that can be immediately applied to their will and situation. the marketing part of it is because the worksheet usually shows the inadequacy of the will as measured against their stated goals and desires. this leads to many estate planning engagements.
