Either before or after the initial meeting, at which a retainer or engagement agreement will be signed, your attorney will likely give you some homework. Most attorneys use a worksheet, anywhere from five to seven pages up to 30 pages in length, designed to help identify your goals, raise issues, and gather data on your estate. This should take about half an hour to 90 minutes to fill out.
It's crucial to fill out this form completely and accurately. "Most people undervalue what they're really worth," says Darlynn Morgan, a trusts and estates attorney with the Morgan Law Group in Newport Beach.
Some questions may feel intrusive, such as whether there's any alcohol or substance abuse in the family. This may, however, affect how you hold assets in trust for certain beneficiaries. "Understanding family dynamics influences the advice I give my clients," says Morgan. As a starting point, Feldman suggests bringing in income tax and gift tax returns from the past several years, as well as any previous versions of a will.
Whenever possible, assemble the names and numbers of the other professionals on your advisory team, including your accountant, life insurance broker, retirement plan advisor, and investment broker. Dig up or ask for copies of policies. "Many people don't even know what they have with regard to life insurance," says Feldman. "They simply know they have it."
Some estate attorneys will charge an extra fee for consulting on how to help minimize estate taxes. Currently, if you have a net worth of $2 million or more, the assets in excess of $2 million will be subject to the federal estate tax rate, which is 46 percent.
With the most basic planning, a full $4 million can be sheltered from estate taxes. Additional planning, which will include advice on how to minimize or eliminate such taxes by transferring assets to an irrevocable trust, for example, can add as little as $1,000 to the legal bill, while potentially saving your heirs tens of thousands of dollars, making it a worthwhile investment.
In the last year, I have been helping my husband's 87 yr old aunt with her estate. We have set up a trust, moved her to assisted living and have been dealing with health issues. This article just confirms we have been moving in the right direction. It has helped to ease my mind that we are doing the right thing. Thanks for a great article. bl