Estate Planning Guide
Estate Planning for High Net Worth Individuals
Estate planning is the process of designating the distribution of your assets upon your death — and dictating how your affairs will be conducted if you can no longer make decisions yourself.
It can be as simple as writing a will, or as comprehensive as creating a living revocable trust. The right plan keeps your estate out of probate, your private affairs out of public view, and your loved ones taken care of.
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Estate Planning Information
Most people don’t know it, but they have an estate. An estate is simply the sum of your possessions at a given point in time during your lifetime or when you die. It can consist of your house, car, jewelry, stocks, bank accounts, life insurance and other professional or personal interests. Some estates are worth a lot more than others, of course, but large or small, most Americans have one.
If you’re worried about burdening your heirs with high estate taxes, an irrevocable trust would be the more prudent choice. Sound estate planning should also explore the use of a living will and a financial power of attorney. These can be useful in the event that you can no longer make health and financial decisions on your own.
Ultimately, the degree of estate planning complexity depends on the size of your estate and the type of assets you own.
💡 Two Common Misconceptions
“Estate planning is only for the rich.” Almost everyone has an estate — real property, vehicles, accounts, legal rights — making estate planning a must for nearly everyone.
“It’s an overly complicated process.” Sometimes true, depending on the assets you own. But a seasoned estate planning expert can help you find your way around the unknown territory of estate planning.
Your Estate Planning Checklist
A complete estate plan typically includes seven key components. Use this checklist to see what you have — and what’s missing.
Last Will and Testament
The most basic estate planning instrument. Details your wishes regarding the distribution of your assets — who gets what when you die.
Revocable Living Trust
Keeps your estate out of probate and your private affairs beyond public scrutiny. The most commonly used trust for estate planning.
Irrevocable Trust
For estates exceeding the federal exemption. Assets are exempt from probate and not part of the valuation of your estate — substantial estate tax savings.
Living Will / Healthcare Directive
Gives someone you trust the power to make healthcare decisions on your behalf if you become incapacitated.
Financial Power of Attorney
Authorizes someone to handle your financial affairs if you can no longer make decisions yourself. Often the trustee or financial advisor.
Life Insurance & ILIT
Provides continued income for loved ones at your death. An Irrevocable Life Insurance Trust holds the policy outside probate so heirs access benefits sooner.
Beneficiary Designations
Make sure beneficiaries on bank accounts, retirement accounts, and brokerage accounts are current. Outdated designations can force probate.
How many of these do you have in place? Schedule a free review and we’ll show you what’s missing.
Wills, Trusts & Probate
The foundation of estate planning rests on three core tools. Each serves a different purpose — and most plans use a combination.
Last Will & Testament
The basics — but goes through probate
Specifies who gets what when you die. If you die intestate (without a will), the state decides how your estate is handled.
- Takes precedence over state laws
- Names an executor for your estate
- Does NOT keep your estate out of probate
- Probate is time-consuming and public
MOST COMMON
Revocable Living Trust
Most common — skips probate
Assets you place in this trust go directly to named beneficiaries without passing probate. You can be both grantor and trustee, retaining full control.
- Skips probate — heirs access assets quickly
- Keeps your affairs private
- You retain control over the assets
- Assets still count toward estate tax valuation
Irrevocable Trust
For larger estates — tax savings
If your estate exceeds the federal exemption, an irrevocable trust holds your assets outside probate AND outside the estate’s valuation — meaning substantial estate tax savings for your heirs.
- Exempt from probate
- Not counted in estate valuation
- Terms cannot be changed once set
- Trustee controls the assets
⚠ The Cost of Probate
Before a judge enforces a will, the court must determine that it is, in fact, the decedent’s final instructions. The executor must file the will, notify beneficiaries, and place public notices for creditors and unknown heirs. Probate can be time-consuming, costly, and public — and your heirs only access the assets at the end of the process.
What Happens to Your Estate If...
Three scenarios. Same estate. Very different outcomes for your family.
No Plan
You die intestate
- State decides who gets what
- Full probate process
- Public court records
- Months to years before heirs access assets
- Higher chance of family disputes
- Maximum estate tax exposure
Will Only
You leave behind a valid will
- Your wishes are followed
- You name an executor
- Still goes through probate
- Still public — affairs visible to anyone
- Heirs wait until probate ends
- No estate tax mitigation
Full Estate Plan
Will + Living Trust + Directives
- Your wishes followed exactly
- Estate skips probate entirely
- Affairs stay private
- Heirs access assets quickly
- Healthcare & financial directives in place
- Estate tax mitigation possible
Beyond the Will: Health, Finance & Insurance
A complete estate plan goes beyond what happens after death — it also protects you and your family while you’re still alive.
Living Will (Healthcare Directive)
Sound estate planning should make provisions for your care if you're unable to speak for yourself. A healthcare declaration gives someone you name (and trust) the power to make healthcare decisions on your behalf. You may have already made your wishes known to your spouse or adult children — but if you don't have it down in writing, the state could intervene and a legal mess can ensue, at a time when your family can least afford to deal with one.
Financial Power of Attorney
It's prudent to give someone power of attorney over your financial affairs. This could already be the trustee or your financial advisor, but it must be in writing. When you inform them of the task you're asking them to perform, make your wishes clear. When you can no longer make decisions for yourself, the people you want on your side are those you can trust to carry out your wishes.
Insurance & the ILIT
Life insurance is often part of a carefully thought-out estate planning checklist. Astute estate planners typically advise creating an Irrevocable Life Insurance Trust (ILIT) to hold the policy — especially prudent if you're leaving behind an asset-rich but cash-poor estate. Since trust assets are outside probate, your heirs access the life insurance benefits sooner and can use some to pay any estate taxes that become due. Consider also disability income insurance to replace your income if you can no longer work, and long-term care insurance to help pay for prolonged illness.
Bank Accounts & Beneficiaries
Make sure you have a current beneficiary on every bank and retirement account. Naming a beneficiary automatically makes these accounts "payable on death" to that person. If the beneficiary is an ex-spouse or deceased, your present heirs will have a tough time accessing the funds — and worse, this can force your estate through probate. Stocks and brokerage accounts can also be registered to transfer to your named beneficiary upon your demise. Keeping your list of beneficiaries current can be easily overlooked, but it can cause major problems for your heirs down the road.
★ Review Your Plan Regularly
Estate planning is not a one-time endeavor. As your life circumstances change, your plans for your estate could evolve as well. Laws that impact estate planning can change too. Review your estate plan regularly — or as often as changes occur in your professional and personal life. There is no better way to protect your loved ones than leaving an estate plan that is thorough and up-to-date.
Common Questions
Do I really need an estate plan if I'm not wealthy?
Yes. The misconception that estate planning is only for the rich and landed couldn’t be farther from the truth. An estate is simply the sum of your assets (less liabilities) at a given point in time — including real property like a house or vehicle, as well as your legal rights and entitlements. By this understanding, almost everyone has an estate, making estate planning a must for almost everyone.
What's the difference between a will and a living trust?
A will details how you want your assets distributed but does NOT keep your estate out of probate. A revocable living trust does — assets you place in the trust go directly to named beneficiaries without passing probate, and your private affairs stay beyond public scrutiny. Most comprehensive estate plans use both.
What is probate, and why do people want to avoid it?
Before a judge enforces a will, the court must determine it is the decedent’s final instructions. The executor files the will in court, notifies beneficiaries, and places public notices for creditors and unknown heirs. Probate can be time-consuming and costly — and your heirs only access the assets at the end of the process.
Will my estate owe estate taxes?
The majority of American estates won’t end up paying estate taxes. The federal exemption is high enough that most estates fall below it. However, if your estate exceeds the exemption, an irrevocable trust is a wise strategy — assets in an irrevocable trust are exempt from probate AND not part of the valuation of your estate, which can mean substantial savings for your heirs.
What happens if I don't have a will?
If you die intestate (without a will), the state steps in and decides how your estate will be handled — based on state law, not your wishes. For your peace of mind and the welfare of your heirs, it’s best to leave a will behind so others handle your estate according to your wishes, not the state’s defaults.
How often should I review my estate plan?
Regularly — or as often as changes occur in your professional and personal life (marriage, divorce, births, deaths, major asset purchases). Laws that impact estate planning can change too. An experienced estate planning professional can help keep up with these changes, especially if your plan includes offshore trust vehicles.
Protect Your Family's Future
Estate planning is one of the most important things you can do for your loved ones. The right plan keeps your wishes intact, your estate out of probate, and your family taken care of. We complete the trust and will form according to your written instructions.
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