I once reviewed an estate plan for a wealthy client whose will and trust documents were hopelessly out of date – so much so that his beneficiaries included ex-spouses and deceased relatives. He realized his plan needed an overhaul but said he didn’t want to spend the money – roughly $5,000 – to make the necessary updates.

Moments after admitting this to me, he invited me to come down to his garage to see his brand-new Lamborghini.

Obviously, I knew this vehicle cost far more than $5,000. But while my client saw the value in his (admittedly gorgeous) new car, he didn’t see the value in having up-to-date estate planning documents.

It’s a common mindset: Whereas we derive immediate satisfaction from material possessions like Lamborghinis or experiences like luxury vacations, we simply don’t get the same gratification from an intangible asset like an estate plan. After all, this is a document that sits in a file drawer or on a hard drive until we pass away.

As financial professionals, it’s our job to help clients appreciate the value of an estate plan. And in my experience, the key to making them see that value is to remind them that, unlike a car or vacation, we don’t spend money on an estate plan for ourselves – we invest in a plan for our family’s benefit.

The existential side of estate planning

While convincing the Lamborghini-owning client to update his estate plan was challenging, it pales in comparison to the experience of helping my parents with their plan. It’s the age-old paradox: Having been raised and supported by these two individuals my whole life, the tables had turned, and I was now helping them. It felt wonderful to have them place their trust in me, but it was still a difficult conversation for all of us.

That emotional component is another key reason so many people put off creating an estate plan: Doing so forces us to confront our own mortality and that of our loved ones.

But as they say about life: No one gets out alive! The fact is that everyone has an estate plan: State law provides a generic one if you don’t have a will or trust. The question is whether you wish to actively engage in the process and customize your plan to reflect your wishes and those of your family.

If we can get past the lack of instant gratification and emotional aversion, the next hardest part of estate planning is finding a trusted and capable attorney to work with on your plan.

As someone who has helped clients develop estate plans for several decades, I can offer some guidance that I hope can make the process less intimidating – and ideally more productive.

Referrals and narrowing down your selection

The first hurdle is knowing who to contact to find an estate planning attorney you trust and with whom you feel comfortable. The best path is generally to get a referral from someone else you trust – that could be your financial or tax professional or a friend or family member. Your local Bar Association or professional organizations such as the Estate Planning Council can also be good sources for referrals.

Ideally, you will identify several candidates that you can narrow down to a panel of two or three. The next step is to interview the panel; key questions to ask are:

• What is your professional experience in estate planning?
• What is your process for developing a plan and what does a typical plan include?
• How much do you charge and how does the schedule of payments work?
• How long can I expect the entire process to take?

Once you’ve selected an estate planning attorney to work with, consider assembling a team that includes the attorney, your financial advisor, tax planner, and any other professionals who may need to be involved in your estate plan. This will allow you to get a holistic view of all your assets and have the right people in place to advise on each aspect of your plan.

Preparing for your initial engagement

Be sure to take adequate time to prepare for your initial engagement with your estate planning team. This will involve gathering all relevant information and documents, including those related to your bank and brokerage accounts, real estate holdings, automobiles, collections, and other items of significant financial or emotional value. You will also want to (for lack of a better word) “inventory” all the immediate, extended, and blended family members who might be included in your estate plan.

Last but certainly not least, consider your planning goals. Whether planning a vacation or planning your estate, you need to know where you are now and where you want to end up, and there are a wide range of options to consider along the way. Your advisor and estate planning attorney can help you weigh those options, choose the best path, and crystalize the end point of your journey.

We may not all have a beautiful Lamborghini in our garage, but we all have an estate plan. Isn’t it time we customize that plan to reflect our personal family situation and dynamic as well as our wishes? Well-crafted estate planning documents will not only direct distribution of our remaining worldly possessions but can also provide our heirs with the most valuable inheritance of all: peace of mind.

IMPORTANT INFORMATION

The information contained herein is for educational purposes only and should not be construed as financial, legal or tax advice. Circumstances may change over time so it may be appropriate to evaluate strategy with the assistance of a financial professional. Federal and state laws and regulations are complex and subject to change. Laws of a particular state or laws that may be applicable to a particular situation may have an impact on the applicability, accuracy, or completeness of the information provided. Janus Henderson does not have information related to and does not review or verify particular financial or tax situations, and is not liable for use of, or any position taken in reliance on, such information.