section 1 - The American College Online Learning Center

c. When will the beneficiaries receive the client’s bounty?2. Fact-finding(1) The advisor, for example, may point out that it is advisable to delaydistributions to beneficiaries who are minors.a. Follow organized methodology.b. Ascertain correct property ownership.(1) For example, is the property individually owned and could be transferredthrough a will, or is it joint property that passes automatically to a survivorat death? Are all of the client assets readily marketable?c. Recognize valuation issues — are assets readily marketable or will they createvaluation and liquidity problems for an estate?d. Determine current transfer mechanisms — ask for copies of wills, trusts, or anybeneficiary designations already in place.e. Evaluate and question competency of a client to determine if expedited actionmay be required (e.g. signing a will before capacity diminishes) as well as thecompetency of potential inheritors to determine if it is appropriate to leave themoutright gifts.3. Key estate planning stepsa. Accurate fact-findingb. Listen to goals and objectivesc. Organize client’s goals and objectivesd. Present client with current snapshot(1) Is this what you would want to happen if you weren’t here tomorrow?e. Formulate planf. Present and revise plan with clientg. Implement final planh. Periodic reviews4. Impact of going through the planning processa. Fact-finding allows the advisor to point out the potential flaws in the current plan,including:(1) Current mechanisms create unintended, unequal transfers(2) Significant transfers to minors or adults who are ill prepared to handlethe property(3) Unnecessary estate taxes or other transfer costs associated with thecurrent planb. The team of advisors should be able to create a plan that more efficiently andaccurately meets the client’s objectives.5. Potential members of the estate-planning teama. Attorney(1) Needed if legal documents must be drafted and legal advice will be requiredb. CPA (Certified Public Accountant)(1) Needed to perform tax compliancec. Life underwriter4.22