Most Americans have become aware of the benefits of financial planners, and of having a financial plan of their own. And now with the recent Wall Street crisis, public talk about financial plans and goals (and how yours may be weathering the storm) has become a lot more common. With all of this, it may seem that “financial planners” have been around forever. But according to Forbes.com, the financial planning profession has actually only been in existence for 40 years or less, and the idea of a “financial plan” is still a lot more nebulous and diverse than you may think.

What this means is that if you were thinking of hiring a financial planner so you can promptly hand over that mysterious and confusing responsibility, you’ll have to think again. You may have to be a lot more educated and involved in choosing your financial planner than you had hoped. A financial plan is not a “one-size fits all” commodity. Not even close. Mike Patton has titled his article “The Elusive Financial Plan”, and says “If you were to stop 10 people in the street and ask them, ‘what is a financial plan?’ you’d likely get 10 different answers.”

If you are not financially savvy you may be starting to worry just about now. How can you possibly be expected to know which of those 10 different plans (or which of 10 different planners) may be right for you? Luckily, you don’t have to decide alone. The best way to find a good match is to consult with friends who have financial goals and values similar to your own. Another option is to ask other trusted advisors for recommendations. Estate Planners work closely with many different financial planners and firms, and will be more than happy to help you find a good fit. An added benefit to asking your attorney is that the best estate plan to have is one that has the input of all of your advisors. The better the relationship between your financial planner and your estate planner, the better your plan will be.

It used to be that trusts were for the wealthy. Those who had inherited money in trust were often labeled “trust fund babies,” and these were the people who had everything paid for and worried about nothing. This is no longer the case. Trusts are used by the middle class more and more, as a tool for avoiding unnecessary probate expense and, sometimes, estate taxes. What this means is that just about anybody can now be a “trust fund baby”; your neighbor, your best friend… maybe even YOU!

If you know that your parents (or someone else) have made you the beneficiary of a trust, you might want o take some time to learn exactly what that means. Although being a “trust fund baby” sounds nice, it’s not completely without responsibilities. For example, if you are entitled to an ongoing stream of income from the trust, that would usually be considered by the government to be taxable income, and must be reported as such. And if you happen to be the trustee as well as the beneficiary there are even more rules and regulations you must remember to follow, as you would then be a “fiduciary” with responsibility to other beneficiaries.

It all may sound confusing, but it’s not as difficult as you think, as long as you know what to expect. If you find out that you are the trustee or beneficiary of a trust, the first thing you’ll want to do is to make an appointment with your attorney to answer any questions that will inevitably crop up. If you don’t have a family attorney, you can contact the attorney who drafted the trust in question or, if you prefer, you may contact our office.   You may end up getting all of your questions answered in one easy appointment, or you may prefer to meet regularly to ensure that things stay on task. Either way, it never hurts to have a knowledgeable professional in your corner, even when you’re lucky enough to be a trust fund baby.