Who Is the Most Qualified Person to Assist with Estate Planning?

The next question is from Caleb. He says, “My parents are transitioning to retirement and looking at estate plans. I’m thinking about directing them to y’all, which is awesome. But I’m wondering who specifically should I point them to in this scenario? Should we look for a CPA or a CFA or someone who has both? He’s really just wondering what is the big difference between these, and what designations should we be looking for now that we’re looking for some type of advisory service?”

I feel like there’s a couple of different questions there. First, Caleb’s parents are transitioning to retirement, so they’re probably trying to figure out if they have enough savings to last through retirement. Then, they need to stress-test their financial plan for all scenarios. Specifically, Caleb is worried about estate planning. These are the reasons why I think taking the relationship to the next level is important. You only have one retirement, while a financial advisor has likely dealt with hundreds of retirements. It’s essential to identify your blind spots and get protection.

If you can hire a financial planner, who acts as a quarterback, to provide you with overviews of options, it can help you make more informed decisions. A good financial planner can serve as a quarterback to guide you through various estate planning options, depending on your specific needs and location. Attorneys are not cheap, so a financial planner can also help you prepare and minimize legal expenses by ensuring that you’ve done your homework.

A real-world example is the case of a client who received an estate plan meant for someone with a much larger estate. A financial planner can ensure that the recommendations make sense for your specific situation and help you put together the puzzle pieces efficiently. Typically, you’ll have a team of professionals working together, including an accountant for tax preparation, an estate attorney for document creation, and an insurance agent. This collaboration ensures that you make efficient and effective financial decisions.

In a structural engineering analogy, if you need a structural engineer for a building project, it’s helpful to have a contractor present. The contractor understands how to implement the engineer’s recommendations and prevent over-engineering. A good financial planner can do the same with estate planning, keeping everyone honest and overseeing the implementation plan.

You want a Goldilocks level of sophistication in your estate planning. It should protect your wishes and beneficiaries without becoming overly complex or burdensome in the future. It’s crucial to strike the right balance and not overcomplicate things, as overly complex estate plans can create future hardships and confusion for beneficiaries. For more information, check out our free resources or see our Ultimate Guide to Estate Planning.