Estate Planning Coordination: How Your Attorney, CPA & Financial Advisor Work Together

Summary

What Does Each Professional Actually Do?

When most people think of estate planning, they think of documents, a will, a trust, powers of attorney, and healthcare directives. That’s the estate planning attorney’s domain. But the financial advisor plays a critical role in ensuring accounts are properly titled, beneficiaries are correctly designated, and the investment strategy supports the overall plan. Meanwhile, the CPA brings the tax lens: understanding the implications of how assets are transferred, what heirs will owe, and how charitable giving strategies should be structured for maximum benefit.

The Step-Up in Basis Mistake That Keeps Happening

One of the most common, and costly errors the team sees is clients trying to simplify things by gifting assets before death. A parent puts a home in a child’s name. A spouse transfers an investment account. It seems easier, but it comes with a major tax consequence: the recipient takes the giver’s original cost basis instead of receiving a stepped-up basis at death.

Jordan gave a vivid example: if a grandfather gifted land to a grandchild decades ago, the grandchild’s basis could be next to nothing, meaning a large taxable gain upon sale. Had the land been inherited instead, the basis would reset to fair market value at the time of death, potentially eliminating that gain entirely. The lesson: always consult the team before transferring appreciated assets.

Charitable Giving: Why the Strategy Matters as Much as the Intent

The team spent significant time on charitable giving, and for good reason, it’s an area where working in silos can cost clients real money. Two valid strategies exist: gifting appreciated stock or making a Qualified Charitable Distribution (QCD) directly from an IRA. But which one is better depends entirely on the client’s tax picture.

With today’s high standard deduction, a client who donates $100,000 of appreciated stock but takes the standard deduction receives far less tax benefit than if they had given directly from their IRA via a QCD. The IRA distribution goes to charity tax-free, and the client avoids the income entirely. The financial advisor needs to know whether the client itemizes. The CPA needs to know what assets are available. And the estate planning attorney needs to ensure beneficiary designations align with the charitable intent, ideally through trust language rather than a will.

Beneficiary Designations: The Detail That Can Override Everything

Arun made a point that every client should hear: a beautifully designed estate plan can be completely undone by outdated beneficiary designations. Retirement accounts, life insurance policies, and investment accounts pass by contract, not by will. If those beneficiaries don’t match the estate plan, the plan doesn’t work as intended.

All three professionals have seen situations where an ex-spouse remained listed as a beneficiary years after a divorce. There’s nothing anyone can do at that point. The simple fix? Review beneficiary designations regularly and always name contingent beneficiaries in case the primary predeceases you.

Estate Tax, Portability, and Planning Ahead

The current federal estate tax exemption sits around $15 million per individual, meaning most Americans don’t currently have a taxable estate. But that doesn’t mean estate tax planning is irrelevant. Assets grow. Home values rise. The great wealth transfer from baby boomers is compounding inherited wealth for the next generation. And Congress can change the rules.

Jordan noted that many of the 706 estate tax returns he files today are for portability purposes, allowing a surviving spouse to inherit the deceased spouse’s unused exemption, effectively doubling the couple’s combined shelter. This can be filed up to five years after death, so even families who don’t realize the opportunity right away may still have time to act.

When Silos Cause Real Damage

The conversation kept returning to one theme: when professionals don’t communicate, clients pay the price. A financial advisor recommending appreciated stock donations without knowing the client takes the standard deduction. An estate plan that leaves a lake house to two adult children who can’t agree on what to do with it. A trust that gets drafted but never funded. A business with no succession plan and heirs who don’t want to run it.

These aren’t edge cases. They’re common. And nearly all of them are preventable when the attorney, CPA, and financial advisor are working from the same set of assumptions.

Questions to Ask Your Professional Team

Here are the questions worth asking:

For your estate planning attorney: Do my documents reflect my current wishes and family situation? Are my powers of attorney and healthcare directives up to date? Should my assets be titled differently to align with my plan?

For your CPA: What tax issues should I consider before making gifts or changing ownership? How could my estate plan affect my heirs from an income tax perspective? Are there upcoming tax law changes I should be aware of?

For your financial advisor: Do my beneficiary designations match my estate plan? Will my surviving spouse or heirs have enough liquidity? Does my financial plan support my legacy goals?

For the whole team: Are all of you working from the same assumptions?

How Often Should You Review Your Estate Plan?

The general recommendation from the group: every three years at minimum, and immediately after any major life event, marriage, divorce, death of a loved one, birth of a child, significant change in assets. Beyond that, a periodic review doesn’t have to be exhaustive. Even a 10-minute look at a summary document can surface outdated beneficiaries, a trust that no longer serves its purpose, or a charity that has since dissolved or changed its mission.

The bottom line: estate planning is a living process, not a one-time event. And it works best when your attorney, CPA, and financial advisor are all in the room, or at least on the same page.

Do you have questions about how to create your estate planning team? Schedule a complimentary consultation today.

• Schedule a Complimentary Consultation: Discover how our services can help you achieve financial confidence.
• Access Our Free Guides: Gain valuable insights on topics such as why most financial plans fail, how to leave a financial legacy, post-divorce financial planning, and more!
• Subscribe to A Wiser Retirement® YouTube Channel.
• Listen to A Wiser Retirement® Podcast and access previous episodes.

Connect:

• Follow Us on Social Media: Facebook | Instagram | LinkedIn | Twitter