The Components of a CI Compliant Estate Plan

There is a lot of chatter on the internet and social media recently about CI Compliant Estate Planning. Let’s explore what a CI compliant estate plan is, how it works and why it may be important to you and your family.

CI stands for comprehensive and integrated. A CI compliant estate plan is one which is both integrated and comprehensive.

Understanding what that means in the world of wills, trusts and estate planning is necessary in order to understand what a CI compliant estate plan is. First, most wills, trusts and estate plans are neither comprehensive nor integrated. Most plans are collections of random estate documents assembled by the client themselves or by an attorney who is not an estate planning specialist.

These plans are not necessarily bad, they are just not comprehensive nor are they integrated in the meaning of of CI compliant estate planning. What is a CI compliant estate plan? Let’s break it down by defining the two terms: comprehensive and integrated. A comprehensive plan is one that considers all aspects of a client’s personal, family and financial life.

A Comprehensive Plan Includes:

1. Status of the client(s). This includes health, work status, age, tax and other factors too
   numerous to list in this basic discussion.
2. Status of the client(s)’ family, children etc. and the status of the relationship that exists.
   This can include medical status of a child, marital status of a child etc.
3. The family analysis should include grandchildren and other family members the client
   may want to benefit.
4. Asset analysis including estate size, growth, nature of assets, complexity of assets, basis,
   current titling and any beneficiary designations that may exist.
5. Assessment of current risks the client and family members may be facing.
6. Assessment of possible future risks.
7. Impact on the client and family of the client’s disability.
8. Impact on the client’s family and/or assets of the client’s death.
9. Analysis of the client’s goals and objectives.
   All of these nine factors are then incorporated into the design of the estate plan and all plan
   documents. The integration of these factors in the desig of the plan, drafting of plan documents
   and titling of assets leads to each factor integrated with the others and within all documents.
   Along with periodic reviews and updates as necessary, the result is a comprehensive and
   integrated estate plan. Making this happen is the CI compliance piece. Because a loose collection
   of documents can never achieve this level of analysis, plan design and asset integration, it can
   never be a comprehensive and integrated estate plan.

To achieve a CI compliant estate plan requires several components. In the next article in this
series, we will review those components.

In an earlier article we discussed CI compliant estate planning, what it is and how it is different from just doing a will, trust or other estate planning documents. To appreciate why clients are best served by comprehensive and integrated estate planning it is useful to detail the components of a fully CI compliant estate plan.

Initial Meetings and Fact Gathering:

At the beginning of a comprehensive and integrated planning process, gathering the right information from clients is critical. This includes completion by the clients of two detailed forms, one focused on the client, family and goals and the second focused on the client’s assets.

The review of this information and the initial meetings or conversations with the clients occur during this phase of the planning process. The following occurs during this phase:

1. Review of the client’s family structure and status.
2. Review of the client’s assets.
3. Understanding the client’s goals and needs.
4. Understanding the client’s current documents, assets, titling and beneficiary designations.

Present Plan Design Options:

There are hundreds of ways a plan can be designed and structured. Several options may be available that match the client’s estate planning goals. There is NO one size fits all estate plan or documents, something not understood by lawyers who only dabble in estate planning.

This phase involves conversations with the client to select proper estate plan design and features.

Creation of the Plan Documents:

In this phase, the estate planning lawyer drafts the initial plan documents. These can be numerous and cover many aspects of the client’s lifetime, disability and death.

The plan documents are reviewed in detail with the client to bring out questions, unanticipated issues and items to be addressed and corrected.

Finally, once all revisions are approved and completed the documents must be signed in accordance with Colorado law to be legal and binding.

Titling and Beneficiary Designations:

Once the documents are fully executed, the next phase involves synching all of the client’s assets and beneficiary designations with the estate plan. This component can involve the creation of assignments, post death assignments, deeds and beneficiary designations.

Once the titling documents are created, they are signed by the client and then delivered or recorded as necessary to finalize the transfer, deliver title or update or complete the beneficiary designations.

Periodic Estate Plan Reviews:

Any CI compliant estate plan must reviewed periodically to remain current and aligned with the client’s goals and objectives. This normally occurs at least every 3-4 years or more frequently if there are changes in the client’s family structure; assets or the law.

All of these components are necessary to create a comprehensive and integrated estate plan.