Utilizing a holistic approach to estate planning is critical, particularly when determining how property will be distributed and the associated tax consequences. The role of the client's advisors is to work in harmony with the client; to understand the client's testamentary objectives and what the client wants to accomplish with his or her wealth while alive.
The authors' holistic approach to estate planning focuses on the importance of a thorough review of each client asset: how it is owned, its cost basis, when the asset will pass and to whom, how it will pass (by will or by operation of law), what taxes are attributable to such asset, who will pay the taxes, and with what money. Once these facts are determined, a proper estate plan can be implemented and achieved. Additionally, the importance of an estate tax allocation provision cannot be overlooked if the client's estate plan is to best reflect his or her desired intentions.
