To create a good estate plan, you must consider four distinct areas of planning. You must prepare for incapacity, death, taxes, and long-term care. The most challenging thing about these four areas of planning is the degree to which they intertwine. Focusing on any one area to the exclusion of the others can be disastrous.

One example is the common technique of avoiding probate by using a quit claim deed. People who do this to save money are unaware of the high capital gains taxes their heirs may face as a result.

Whether you should work with a lawyer or a financial manager on your estate planning depends on your needs. However, you may benefit from working with both in many situations. This is why:

An Estate Planning Attorney specializes in writing wills, trusts, powers of attorney, and healthcare directives, among other legal parts of estate planning. He/she can make sure that your documents follow all state and federal rules. An attorney can also provide advice on how to keep estate taxes as low as possible.

A Financial Planner/Advisor focuses on investing, saving for retirement, insurance, and managing your cash flow are all part of this total financial picture. A financial planner aligns your financial goals with your estate planning goals (for example, having enough cash on hand to pay estate taxes or meet the needs of an heir, etc.). A financial planner may be able to come up with ways to keep wealth for future generations and help make your assets grow faster.

When you might need a lawyer:

1. Writing legal documents: Only a lawyer can write or look over legally binding papers like wills, trusts, and other instructions.
2. Complex Estates: If you have a lot of assets, a lot of homes, or business interests, you should talk to a lawyer right away to make sure your estate is set up correctly and that you don’t pay too much in taxes.
3. Rules that are unique to each state: Each state has its own estate rules. An attorney can help you stay in line with the law and let you know about any changes to the law.

When you might need a financial advisor / planner:

1. A complete plan for your money: A financial advisor can help you plan to make sure you have enough money for retirement and that your estate plan fits in with your overall financial goals.
2. Investment Alignment: A financial advisor can advise you on how to best divide and organize your investments to meet your cash flow needs, protect your heirs, and lower your risk.
3. Insurance and Risk Management: Financial advisors can help you choose the right life insurance and long-term care insurance, which are both parts of estate planning.