Through the green visor: a holistic approach to estate planning.

• Author: Allmon, Michael B.
• Position: Client services

The World is about to experience the largest wealth transfer in history. The past 20 years of worldwide wraith creation is expected to be followed by the transfer of 82.1 trillion over the coming 20 years--and our country will see an estimated $1.1 trillion that wealth.

This coming wealth transfer will certainly impact the goals and values of those who receive it, Which means-advice will he needed for all areas of financial advisory (income tax planning estate planning, retirement planning, investment planning etc.) in assisting with this wealth transfer.

A wealth transfer of this magnitude between generations indicates an obvious need for relate planning, not only to minimize inheritance taxes (which are not always applicable) but also--just as important--to support transfer goals, both charitable and non-charitable, Enter the CPA, whose role in this planning will become more important than ever.

Each CPA will haw to determine the level of involvement they're comfortable with, ranging from being a financial coach working between the client's attorney and the client (assisting clients in understanding legal advice and making decisions) to assisting in the process (especially with the CPA's intimate knowledge of the clients' situation, both financial and personal) to being the primary adviser and suggesting estate planning tools that make sense given a clients situation

Uniquely Qualified

We, as CPAs, are uniquely qualified to assist in the financial aspects of estate planning, For example, the concept of "excess assets" (when someone has more net worth than they will need to support themselves the rest of their lives) can be measured, evaluated and monitored by a client's CPA Further, the dispositive provisions of an estate plan can be evaluated by CPAs to determine whether they make sense (eg., "Docs the client have sufficient wraith for certain provisions in their will or trust?").

CPAs, as primary financial advisers involved on a continuous basis with clients, are able to coordinate the estate planning with other areas of financial planning. The CPA can judge whether proposed or existing estate plans make sense for the client (estate plans are highly personal documents, often prepared by attorneys who do not really know the psychology of their clients). For example, planning for the ultra-wealthy differs completely from planning for those just trying to get by--yet both need estate plans.

Estate planning also involves coordination with...