Certified Public Accountant | Life Underwriter | Attorney | Bank Trust Officer 

CPA

The Certified Public Accountant has been playing a vital role in the area of financial planning for many years.  This role developed from the tax planning and return preparation services provided by the Certified Public Accountant which enabled him to obtain considerable familiarity with the personal, professional and financial circumstances of an individual.

With the Certified Public Accountant’s knowledge of the basic principles of income, gift and estate taxation and fiduciary and probate accounting, the Certified Public Accountant is in an excellent position today to initiate or contribute to any ESTATE PLANNING TEAM that is fully informed as to an individual’s lifetime and death time financial needs.

During an individual’s lifetime, the Certified Public Accountant can analyze his financial status to set priorities for the utilization of cash during employment, retirement and post-death years, suggest various income and estate tax planning techniques to further build and preserve his estate and make many of the mathematical computations necessary in designing the specifics of an estate plan.

After an individual’s death, the Certified Public Accountant can render tax planning and preparation services. He can assist in valuing closely held stock, designing the estate’s books and records and preparing schedules for tax returns and accountings.  

In summary, the Certified Public Accountant has a significant and valuable role to play on any ESTATE PLANNING TEAM.

Life Underwriter 

The Life Underwriter’s function in the ESTATE PLANNING TEAM is to create and guarantee the CAPITAL required in the family and business situation in the form of a life insurance contract payable at death or retirement.

Capital creation through the use of insurance in the usual family situation will guarantee the family’s ability to survive financially and maintain a standard of living in the event of death of the income producer.  It is also the Life Underwriter’s function to provide income to the breadwinner in the event of his disability.

On the business scene, insurance can provide the capital funding for the potential buy out of an owner’s business interest in the event of his death and to also insure the “key people” who are the life blood and profit center of any business.  

On the ESTATE TAX side, the Life Underwriter has the ability to guarantee the necessary funds to cover the inevitable estate settlement costs at the least expensive cost per dollar.

In connection with qualified PENSION and PROFIT SHARING plans, in many instances, life insurance is used to guarantee the pre-retirement death benefit and the retirement annuity.

Finally, the Life Underwriter’s function further encompasses the planning of the policy contracts they provide in order to take advantage of the most favorable contractual benefits available.  In each situation, the needs of the insured may differ with regard to ownership, beneficiary, and general policy options.  The life insurance contract is one of remarkable flexibility and the best answer to many estate planning problems.

Attorney

It has been reported that each year in the United States, the various states, counties, cities, towns, villages and the Federal government enact over 3,000 new laws.  Many of these laws affect an individual’s right to own and transfer property.

While no attorney can be expert in all fields of law, some attorneys concentrate in real estate law, some in criminal law, some in corporate law, etc., while a few attorneys concentrate in estate and trust law.

Estate and trust law requires knowledge of other fields of law such as corporate and insurance law.

The attorney plays a key role in the estate planning process because he/she is responsible for drafting legal documents such as a will or trust agreement.  The wrong phrase, even a word in the wrong place, may be the basis for a later will contest or claim for additional taxes.  Yet, the attorney must be sure that the individual’s wishes are properly and completely expressed in all legal documents.  Therefore, knowledge of the law is essential during the estate planning process.

Bank Trust Officer

Commercial banks have years of practical experience in trust administration and estate settlement.  Many times the Bank Trust Officer is able to suggest to the individual and his/her attorney a simpler, less costly way of implementing an estate plan.

Trust Officers have faced the problems of the liquid estate where the bulk of the estate is in shares of a closely held company.  He can identify a need for life insurance, key man or buy/sell insurance.

During the estate planning process a Trust Officer could also discuss other services of the bank, such as investment management or custody services for stocks and bonds.

There is no charge or implied obligation for discussing your estate planing problems with a Trust Officer.  Many times it is only after individuals go through the estate planning process that they realize a bank makes a most desirable trustee and/or executor because, unlike a family or family member, banks have corporate life.  Their well trained trust department staffs specialize in investment management, record keeping, taxation and have the knowledge of all the duties of a fiduciary.

A Trust Officer can be very helpful and is part of the ESTATE PLANNING TEAM.