Estate Planning: A Holistic Approach

Part one: Involve all advisors in the planning process.

UTILIZING A HOLISTIC APPROACH to estate planning is critical, particularly when determining how property will be distributed and the associated tax consequences. The role of advisors is to work in harmony with the client in order to understand the client’s testamentary objectives and what the client wants to accomplish with his or her wealth while alive.

The holistic approach focuses on the importance of a thorough review of each client asset: how it is owned, its cost basis, when the asset will pass and to whom, how it will pass (by will or by operation of law), what taxes are attributable to such asset and who will pay the taxes and with what money. Once these facts are determined, a proper estate plan can be implemented. Additionally, the importance of an estate tax allocation provision cannot be overlooked if the estate plan is to best reflect the client’s desired intentions.