Estate Planning Work Program - Rev 090209

Estate Planning Work Program

1.0

C-1

S-2

LKF or VS

0.5 in additio n to “std” net worth stmt.

C-1

S-2

LKF or VS

0.2 per policy

C-2

S-2

LKF or VS

Review Assigned To:

C:\Data\GPN 2009 Retreat Presentation - Systemizing Your Practice\Estate_Planning_Work_Program_-_rev_090209.doc

X

Prep Assigned To:

3. CSE-13: Inventory Life Insurance. Construct a complete list of all life insurance policies for which the client or their heirs are the insured, owner, or beneficiary. Include fields to track request/receipt of policy information for each policy.

Target Staff Level

X 2. CSE-12: Schedule Assets by Ownership. Expand the basic net worth statement to schedule assets & liabilities by specific titling (separate property, community property, entity (such as family limited partnership or LLC, irrevocable trust, etc.). Consult the lead advisor if needed to clarify how ownership should be separated and/or aggregated.

Competency Level

C

Time Budget

X

Due

Detailed Description of Procedure 1. CSE-11: Inventory EP Documents. Obtain, scan, and construct an inventory of the client’s current estate planning & contingency management documents using the “Key Estate Planning Situation Information” template (or similar layout if more detail is required). Note that if the client owns a business this would include available business documents such as a buy-sell agreement, and if family entities (trusts, partnerships, etc.) are present the governing documents should be acquired.

Complete for Meeting Task ID (ADD LATER) TS Full Name & Description Nickname

Dependency Level

S-2

Detailed Description of Procedure 0.1 per policy

4. CSE-14. Seek Current Life Insurance Policy Information. Obtain current information about any policies in force directly from the insurance company: a. Submit a Verification of Coverage request for each policy. b. Request an in-force illustration for any nonterm policies unless otherwise directed by the lead advisor. 5. CSE-15. Track Policy Info Requests. Post the receipt of each VOC and in-force illustration response, following up on open requests as needed.

0.5

6. CSE-16: Recap Current Policy Details. When all policy verifications have been returned, use the format of the Insurance Summaries template to a) recap the details for each policy and b) summarize coverage for each insured.

0.5

7. CSE-17: Confirm Beneficiaries. Obtain documents identifying current beneficiaries (primary, contingent / secondary, and/or tertiary) of each pertinent account or policy from custodians or other parties. Summarize using the “Key Estate Planning Situation Information” template or a similar more detailed layout. C:\Data\GPN 2009 Retreat Presentation - Systemizing Your Practice\Estate_Planning_Work_Program_-_rev_090209.doc

X

1.0

LKF or VS

Review Assigned To:

Target Staff Level

C-1

Prep Assigned To:

Competency Level

Time Budget

Due

Complete for Meeting Task ID (ADD LATER) TS Full Name & Description Nickname

Dependency Level

1.5

C-4

P-2

JPB

9. CSE-19: Current Transfer Tax Projection. Use QuickView or an alternative method to calculate estimated estate taxes under existing arrangements for two scenarios:

X

0.4

C-3

P-1

LKF

Detailed Description of Procedure

•

Assume death in the current year for the first spouse to pass, and in the subsequent year for the second spouse (i.e., no growth in the estate).

•

Assume death in 10 years for the first spouse and 15 years for the second spouse. Assume net estate growth of 4% for retired clients and 8% for employed clients unless otherwise instructed.

Note any additional transfer taxes that should be considered under the current arrangements (e.g., generation-skipping transfer tax) and consult the lead advisor as to the need to calculate an estimate of such taxes. C:\Data\GPN 2009 Retreat Presentation - Systemizing Your Practice\Estate_Planning_Work_Program_-_rev_090209.doc

Review Assigned To:

Prep Assigned To:

Target Staff Level

X

Due

Competency Level

Time Budget

Complete for Meeting Task ID (ADD LATER) TS Full Name & Description Nickname

8. CSE-18: EP Document Review. Peruse current estate and contingency management documents, preparing a summary of key provisions for internal use (this should be sufficiently detailed that we would not expect to have to revisit the original document except for unusual questions). Note issues, questions, concerns, recommendations for consideration.

Dependency Level

C-3

P-2

VS or JPB

11. CSE-21: Will Diagram. Prepare a graphic diagram summarizing the current will or trust provisions.

0.3

C-2

P-1

VS

12. CSE-22: Beneficiary Distribution Analysis. Using X current asset values and current dispositive plans, prepare a graphic or tabular analysis of current distribution amounts to the various heirs.

0.4

C-3

P-2

VS or JPB

13. CSE-23: Identify Surplus Assets. Perform a capital needs analysis (retirement sustainability projection) and estimate the client’s current and/or future net worth in excess of that necessary to provide for their financial independence throughout their lifespan.

0.2 (+ 1 C-4 hour if retirem ent plannin g not done for client)

P-2

JPB

14. CSE-24: Policy Review Request. Request a policy

0.2

Detailed Description of Procedure

C:\Data\GPN 2009 Retreat Presentation - Systemizing Your Practice\Estate_Planning_Work_Program_-_rev_090209.doc

Review Assigned To:

Prep Assigned To:

Target Staff Level

0.3

Due

Competency Level

Time Budget

Complete for Meeting Task ID (ADD LATER) TS Full Name & Description Nickname

10. CSE-20: Liquidity Assessment. Review the schedule of assets and liabilities by ownership, beneficiary documentation, notes on current dispositive arrangements, and estimates transfer taxes. Assess the current adequacy of liquidity for the estate of each client and note any concerns which should be addressed.

Dependency Level

C-4

P-2

BLJ

0.5

C-4

P-2

VS or JPB

Detailed Description of Procedure review for each life insurance policy from our insurance consultants. TARGET FOR THIS POINT: 2 WEEKS BEFORE PM 15. CSE-31: Summarize Objectives. Prepare a summary of our understanding of the client’s estate planning objectives and preferences. This may be based on our meeting notes, questionnaires completed by the client, or similar sources. This may be as brief as a paragraph or two in a memo or planning summary prepared for the client, or as detailed as a separate memo or note to the file. The extensiveness of this summary should be determined by the depth of our planning scope, and the extent to which our summary of the client’s desired provisions for their basic estate planning documents needs to be supplemented to adequately guide our planning with the client. 16. CSE-32: Draft Desired Document Provisions. Prepare a summary of the client’s desired document provisions (i.e., will or trust, DPOA, etc.) for client and/or attorney use. This should be detailed enough that a competent estate planning attorney would require only minimal additional information to be able to draft documents conforming to the client’s wishes. C:\Data\GPN 2009 Retreat Presentation - Systemizing Your Practice\Estate_Planning_Work_Program_-_rev_090209.doc

P M

1 4

Review Assigned To:

Target Staff Level

Prep Assigned To:

Competency Level

Time Budget 0.5

Due

Complete for Meeting Task ID (ADD LATER) TS Full Name & Description Nickname

Dependency Level

C-4

P-2

JPB

18. CSE-34: Draft Estate Planning Recommendations. Performing additional research and/or analysis as required, prepare draft estate planning recommendations which seem appropriate to the client situation, objectives, and preferences.

1.5

C-4

P-2

VS or JPB

19. CSE-35: Consult Other Advisors. Coordinate our consultation on proposed planning strategies with the client’s estate planning attorney, CPA, and/or other trusted advisors. Consider whether meetings are needed, or whether adequate interaction can be achieved through email circulation or brief phone conference(s).

0.5

C-4

P-3

VS or JPB

20. CSE-36: Proposed Transfer Tax Projection. Calculate the estimated current / future estate tax (or other transfer taxes) under the proposed arrangements.

0.2

C-3

P-2

JPB

21. CSE-37: Proposed Liquidity. Evaluate the liquidity of the estate under the proposed

0.2

C-4

P-2

JPB

Detailed Description of Procedure

C:\Data\GPN 2009 Retreat Presentation - Systemizing Your Practice\Estate_Planning_Work_Program_-_rev_090209.doc

Review Assigned To:

Prep Assigned To:

Target Staff Level

0.3

Due

Competency Level

Time Budget

Complete for Meeting Task ID (ADD LATER) TS Full Name & Description Nickname

17. CSE-33: Explore Planning Approaches. Consider reviewing an estate planning techniques & strategies inventory to generate a list of planning approaches meriting additional consideration in light of the client’s situation and objectives.

Dependency Level

S-3

23. CSE-39: Distribution Analysis. Prepare a graphic or tabular (tabular for larger numbers of heirs) analysis of distribution amounts to the various beneficiaries under the proposed arrangements.

0.2

C-3

P-2

24. CSE-40: Finalize EP Recommendations. Conclude our planning by finalizing our counsel to the client regarding estate planning and contingency management.

0.7

C-4

P-3

25. CSE-41: EP Implementation Steps. Summarize implementation steps as appropriate for various parties (NFP, client, attorney, other).

0.3

C-4

P-2

0.3

C-4

P-2

26. CSE-42: EP Reporting Out. Plan for coordinated communication of estate plans to heirs, executors, and/or other interested parties. TARGET: 1 WEEK BEFORE PM

C:\Data\GPN 2009 Retreat Presentation - Systemizing Your Practice\Estate_Planning_Work_Program_-_rev_090209.doc

Review Assigned To:

C-2

Detailed Description of Procedure arrangements. Modify or supplement the draft estate planning recommendations as needed.

Prep Assigned To:

Target Staff Level

0.4

Due

Competency Level

Time Budget

Complete for Meeting Task ID (ADD LATER) TS Full Name & Description Nickname

22. CSE-38: Diagram Proposed Arrangements. Prepare a graphic diagram of the proposed arrangements.

Dependency Level