Page 35 - Successor Trustee Handbook

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.

Clearly understand how fees will be charged by the attorney or other
advisors. Will you be charged based on an hourly rate as work is done,
on a fixed or flat fee basis, or on some percentage of estate value or
assets under management, and will your payment be partly due up front
and partly when the work is completed? What services will be included
and what ones will not? Will you be billed extra for phone calls,
meetings, copying costs, court costs, messenger costs, etc.? These
should all be answered clearly in the advisor’s engagement letter, which
should be read by you and signed in advance of the advisor commencing
work.

Immediately establish with your attorney and other advisors the most
efficient manner of communication. Typically, the attorney or other
advisors will have their own “protocol” of how they will handle your phone
calls, e-mail, and other correspondence. Usually, it is best for you and
the advisor to designate a paralegal or staff person as the one you turn
to first for assistance and, when necessary, you can use this person as an
intermediary to get questions answered and things done more quickly
(realize that the professional may often be tied up during the day in
meetings or on other phone calls).

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