In my practice as investment counsel to high-net-worth families, one of my roles is to help clients plan for family and charitable legacies. That involves integrating financial and estate planning, a subject I've written about from time to time. (If you would like a digital download of an article I wrote in connection with "The Discerning Investor," published by the American Bar Association, here is a link: tinyurl.com/2ujxrwzx.)

Over the years, I've seen what works and what doesn't in both large and small estates, and I'm happy to share some insights.

The first subject to tackle is the role of the executor, which opens up two issues: If you are chosen to serve in that capacity, should you? And, if you are an executor, where do you get help?

The executor's job is to move an estate through the probate court process to make sure the deceased's assets are transferred to heirs after paying the decedent's debts, including any federal and state estate taxes that may be due.

The job can be easy if there are few assets and debts and a simple legacy -- or daunting if the deceased's life and legacy wishes were not only complicated, but also disorganized.

A simple situation might be a single elderly individual who sold his home before moving into a long-term care facility, with a single brokerage account worth less than $1 million, and a single heir, an only child.

A much more complex estate is a very wealthy business owner of a private company whose current spouse and children will share assets with children born of prior marriages along with two charities. The individual has multiple homes in different states, multiple brokerage accounts, complex financial holdings (including illiquid holdings), a valuable art collection, tax-deferred assets with multiple custodians but no beneficiary designations, a few old 401(k) plans held with prior employers, and ongoing contractual obligations, including private jet services.

As you can imagine, the job of serving as executor for the simple situation is going to be ever so much easier to handle than the second. The choice of executor for the simple estate can easily be the only child or a friend. For the much more complex situation, the executor could be the spouse or a professional executor -- or both.

If you are asked to serve as executor of the simpler situation and you have the time to devote, there are some tools to get you organized.

To get a feel for the tasks involved, take a look at EstateExec's sample task sheet (tinyurl.com/3be5sav7), which lists more than 60 items -- from notifying people and companies about the person who passed away to finding and claiming assets and paying property taxes.

Another website, Executor.org, leads you through a few questions to produce a free, customized "Duties of an Executor" checklist with 100-plus steps (tinyurl.com/mr3bw2jb). Among the questions are "Is the person who appointed you as executor alive and able to discuss the estate with you?" and "Did/does the will writer own real estate? (typically home, condo, farm, etc.)"

These resources will get you going and prepare you to work with a probate attorney if you choose to engage one. Most lawyers will recommend that you do retain a lawyer, but that is not necessary in most states. The key is complexity and size of the estate. With any size estate, the software and tools can help you get organized, which will save time and potentially reduce legal fees. Lawyers will be essential resources for larger and more complex estates.

In the end, serving as an executor requires dedication and attention to detail. Organization is the key. I will be following up on this topic in a future column.

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Thank you to those readers of this column who took the Financial Industry Regulatory Authority (FINRA) quiz that I wrote about a few weeks ago (“FINRA Survey Shows Investors Need More Knowledge”). The quiz, with 11 questions, was part of the National Financial Capability Study, which is conducted every three years by the FINRA Foundation. (A special congratulations for those who achieved a perfect score!)

If you are a quiz taker, there is another, lengthier FINRA test that you might want to tackle, especially if you are either a do-it-yourself investor or a student who is interested in getting a job on Wall Street. Called the Securities Industry Essentials (SIE) Exam, the test has 75 multiple choice questions. To pass, you need to answer 70 questions correctly.

The nice thing is you can take a free practice test online, get scored and review your answers.

Let me share a few questions; I’ll give you the correct answers at the end of this column.

1. UTMA accounts are opened under the tax ID of the

A. Minor

B. Donor

C. Parent

D. Custodian

2. Which of the following stakeholders has first claim priority in a Chapter 11 proceeding?

A. Equity holders

B. Secured debt holders

C. Unsecured debt holders

D. Preferred stockholders

3. What is the cost basis of an inherited mutual fund?

A. The net asset value (NAV) of the shares when the owner dies

B. The NAV 30 days after the owner’s death

C. The same cost basis as the deceased

D. The same cost basis as the deceased plus capital gains distributions

To test your mettle, try the free SIE practice test (tinyurl.com/4bh334jd), which is the source of the above questions.

You can also sign up to officially take the test, which you might want to do if you have an interest in working in the financial services industry. Unlike other FINRA tests (example: Series 7), you do not need a financial firm to sponsor you. There is a cost ($80); scores are retained by FINRA for four years.

That part is easy. I would recommend, however, that you take your time to study for the test. Here’s why.

While the exam contains the types of easy questions we reviewed together, it also assesses financial industry knowledge. The SIE “is an introductory-level exam that assesses knowledge of basic industry information, including fundamental concepts such as types of products and their risks; the structure of the markets and regulatory agencies and their respective functions; and prohibited practices,” explains Alexandra Toton, Director of CRED (Credentialing, Registration, Education and Disclosure) Testing and Continuing Education at FINRA.

So, study first.

By the way, passing the test is only the first step into the industry. There are other qualification exams related to the securities business. But, importantly, the SIE is a way to set yourself apart from other candidates.

Toton explains that “because the SIE is required for many of the registrations, passing the SIE is a way for students to differentiate themselves from other candidates when seeking internships or jobs.”

If you are on that track, the FINRA website (tinyurl.com/4yteahkf) provides an overview section for enrolling for the test, as well as the exam’s downloadable content outline, which includes a breakdown of the exam’s categories. According to FINRA, 33 questions involve “Understanding Products and Their Risks,” followed by “Understanding Trading, Customer Accounts and Prohibited Activities” (23 questions), “Knowledge of Capital Markets” (12 questions) and “Overview of Regulatory Framework” (seven questions).

The correct answers for the questions above? 1) A; 2) B; 3) A. If you decide you want to test your knowledge, email me at readers@juliejason.com to let me know your results.

On another note, I invite attorneys to join me for a virtual presentation: “SEC Disclosure Tool (Form CRS) Helps Attorneys With Their Due Diligence When Referring a Financial Adviser to a Client,” on Feb. 28 at noon EST. Register at tinyurl.com/kauvrha6.

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In last week's column, we talked about the beginning steps for a retiree looking for a new financial adviser, based on a letter from "Barbara." She and her husband were looking for portfolio management and retirement expertise. The need for management leads to a search for a "registered investment adviser." (If you missed the column and would like a copy, write to me at readers@juliejason.com.)

We left last week's column with a promise of questions to ask when you start interviewing firms.

It turns out that regulators have provided investors with a cheat sheet, the U.S. Securities and Exchange Commission's Form CRS (Customer Relationship Summary). The CRS is a short, two-to-four-page document that follows a recipe. The idea is that it's an easy tool to help you compare and contrast firms and the individuals whom you would like to interview.

Among other things, in the CRS you'll see a list of questions the SEC would like you to ask (called "conversation starters"). To me, considering my law experience on Wall Street, one of the most revealing questions is about conflicts of interest and how the firm handles them.

What are some possible conflicts of interest? Advisers might receive higher compensation for recommending one investment over another. An adviser who changes firms could receive incentive compensation that he can lose if he doesn't meet production requirements.

Another question the CRS addresses is whether the firm or adviser has "legal or disciplinary history." If the answer is "yes," the CRS will point you to the SEC's public disclosure site (tinyurl.com/44vfe8hc) that provides additional information. Legal and disciplinary details will give you a sense of a firm's culture. The Financial Industry Regulatory Authority's BrokerCheck site (tinyurl.com/y5vjjzku) will also be helpful in researching this type of information.

The CRS also covers fees. A section of Form CRS asks, "What fees will I pay?" Another asks: "If I give you $10,000 to invest, how much will go to fees and costs, and how much will be invested for me?"

As an example, say that a firm charges a yearly fee of 1.25% for managing portfolios of $1 million or less. At that rate, a $500,000 portfolio could pay $6,250. You would want to know if there are other costs or fees that are visible (and potentially invisible).

Before plunging into an interview, make sure you compare a few Forms CRSs to get an understanding of different firms.

This whole exercise is about comparing and contrasting, but you have to start with the big picture, which is the firm. The adviser works for the firm and will adapt to the culture of the firm, not the other way around. Again, I would not start with the adviser. I would start with the firm.

Then, interview the adviser who works for the firm whose culture you identify with. Firm policy and protocols trickle down to the adviser who would represent you. Choosing a firm over a person may have been less important when advisers acted as "customer's men" -- they represented you to the firm. That changed over time after firms started manufacturing and selling their own products to their customers. The good thing is that this information can be gleaned from Form CRS.

In the end, keep in mind that there are a lot of investment advisers to choose from. There are 14,806 investment adviser firms registered with the SEC, according to the 2022 Investment Adviser Industry Snapshot (tinyurl.com/4e4be7ks). Another 17,371 are regulated by the states instead of the SEC; these are smaller firms.

In addition, many of the larger brokerage firms, whose names you would recognize, are "dual registrants," meaning they act as both investment advisers and brokers. In those cases, the broker working for the firm is "dually hatted." However, different rules apply when the broker is acting as such.

If you want to learn more about this subject, I can send you a copy of a sample chapter from my latest book, "The Discerning Investor," which was recently published by, and only available through, the American Bar Association. (Email me at readers@juliejason.com.) Also, you may want to listen to my continuing legal education presentation at Lawline (tinyurl.com/3pm8zbkr), an online learning platform for attorneys.

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