Seek Help When Establishing an Estate Plan

Question: Should I hire advisors to help me establish an estate plan?

Answer: Yes. And here's why: Estate planning documents are complex and laws can vary from state to state. Definitely hire an estate planning attorney to help you create an estate plan -- he or she may be the most necessary member of your team. They create estate planning documents and helps you title assets so they can be managed and distributed according to your wishes.

An estate planning attorney also will make sure documents, such as a will, meet your state's legal requirements. He or she will ensure that you sign and date legal documents and will advise you on where to keep the original and copies. Your attorney also can assist you with retitling assets if needed -- a step taken when establishing a living trust. No matter what your goals are, an estate planning attorney can help you take advantage of gift and estate planning laws to reduce or avoid taxes on your estate's assets.

You also may have other advisors work with you on your overall financial plan and estate plan. For example, an accountant may help you with budgeting and taxes. Your accountant can provide your estate planning attorney with records of your assets and liabilities so the attorney can determine the best estate plan for you. And if you work with a financial planner on your retirement or other investment goals, be sure you share your financial plan with your estate planning attorney. Both advisors can help you make sure your assets meet your investment goals during your lifetime, and ensure they are managed and distributed the way you want after your death.

No matter who works with you on an estate plan, your primary advisor, such as an estate planning attorney or the executor of your estate, should have originals of your estate planning documents since he or she will settle your estate after your death.

Douglas C. Lockwod writes on behalf of American Century Investments. Visit American Century's Education and Planning site to learn about other estate planning documents and the importance of creating an estate plan.

This information is for educational purposes only and is not intended as investment advice.