Page 34 - Successor Trustee Handbook

CHAPTER 7

TIPS ON WORKING SUCCESSFULLY WITH AN ATTORNEY

(AND OTHER PROFESSIONAL ADVISORS)

Very often, we find that Trustees have never worked closely with an attorney or
other professional advisors (such as a CPA, or financial advisor) on important
legal matters. Worse yet, Trustees may have certain prejudices or misconceptions
about attorneys and other professional advisors which can create obstacles in
working closely and successfully with them. The following are a few quick tips on
how you can best work, efficiently and amicably, with the attorney and other
professionals you may need from time to time.

Use a Specialist. Try to use a “specialist” when engaging the assistance
of any attorney, CPA, and other professionals. By this, we mean a
specialist in handling Estate and Trust matters. You are not required to
work with the attorney who drafted the estate plan. Some attorneys may
have drafted numerous Living Trusts and estate plans, but have only
administered a few. Some attorneys are knowledgeable and
experienced in certain aspects of Trust Administration, such as
inventorying, accounting and distribution of assets, but not in other areas
such as the “ABC allocation” on the death of the first spouse of a married
couple, or preparing the estate tax return (Form 706). Similarly, some
CPAs are excellent at preparing income tax returns for the Trust but
haven’t done many estate tax returns. You may need more than one
specialist to act together as a team in assisting you. The attorney you
select may then help you find an appropriate CPA, financial advisor,
appraiser, etc. We recommend that you see the attorney first, since he or
she is usually in the best position to “quarterback” the team of
professionals when it comes to estate and trust administration.

Be clear on what are your responsibilities and what are the attorney’s or
other advisors’ responsibilities. For example, you may be responsible for
collecting all required asset information and valuations. The attorney
may be responsible for preparing all necessary legal documents,
including re-titling of assets and even certain tax returns. Normally, the
attorney will outline in his or her engagement letter and initial
correspondence to you, in detail, your respective responsibilities. Keep in
mind that the attorney has no responsibility or duty to advise the
beneficiaries, as he or she only represents you as the Trustee.

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