Reduce Estate Tax with Private Annuity Sale

January 5, 2026

You can reduce your estate tax exposure with a private annuity sale. A private annuity sale allows someone to transfer an asset, such as a business, real estate, or highly appreciating property to another person. This comes in exchange for a series of fixed payments for the rest of their life.

Unlike a gift, the transaction is structured as a contract. This provides the seller with a predictable income stream while the asset and its future growth pass out of their taxable estate. For many families seeking long-term planning and tax efficiency, this strategy can be a smart way to preserve wealth without triggering gift tax or estate inclusion.

What Is a Private Annuity Sale?

A private annuity sale is a legal contract: you sell an asset now, and in return, the buyer agrees to make regular payments to you for as long as you live. Because the sale is structured as a transfer in exchange for annuity payments, the full value of the asset is generally removed from your estate. This can significantly shrink your future estate tax exposure, especially for assets expected to appreciate.

The buyer (for example, a child or other family member) takes ownership of the asset immediately and receives all future gains. Because the payments are part of a sale, not a gift, many of the concerns associated with large lifetime gifts, such as the gift tax, don’t apply in the same way. There are many advantages to a private annuity sale, such as guaranteed income and tax efficiency.

Estate Tax Efficiency

By removing the asset from your estate, the private annuity sale helps reduce the portion subject to estate tax. For sizable or rapidly appreciating assets, this can result in substantial savings over time.

Guaranteed Income for Life

You receive a stable income stream backed by an annuity, providing financial security regardless of market fluctuations. This income can supplement retirement, cover living expenses, or serve as a legacy support mechanism.

Transferring Wealth Without Gifting Risk

Since the transaction is considered a sale, you avoid making a “gift” that could deplete your lifetime gifting capacity. It also allows you to time tax planning more precisely according to your needs.

Important Risks and Considerations

While powerful, this strategy is not without pitfalls. Here are key risks to consider:

Longevity Risk: Payments are based on life expectancy tables. If you live significantly longer than expected, the buyer may pay more than the asset’s current value.
Buyer’s Payment Capacity: The buyer must have a reliable cash flow to make the payments. Financial instability on their part could lead to default.
Capital Gains: When you transfer the asset, you may trigger capital gains taxes, depending on its type and gain.
Interest-Rate Assumptions: The “fair” annuity payment depends heavily on assumed interest rates; overestimating yields can lead to underfunded payments.

Because of these complexities, careful modeling by a qualified attorney and financial advisor is essential. You will likely need actuarial tables, asset valuations and systems to structure your payments in a tax-efficient manner.

When a Private Annuity Sale Makes Sense

This strategy is especially useful when:

You hold a business, real estate, or another high value, appreciating, or illiquid asset.
You want to shift long-term growth to younger generations without burdening them with too-high purchase prices or liquidity demands.
You want to retain a steady income stream during your lifetime.
Your estate is likely to face tax exposure under current or future exemption limits.

If these apply, a private annuity sale may be worth discussing with your advisors now—before the tax landscape or your personal situation changes.

How to Proceed Safely

Engage both an estate planning attorney and a financial advisor to run detailed projections.
Value the asset being sold accurately and prepare a fair payment schedule.
Make sure that the buyer understands and agrees to the long-term commitment.
Include protections for both parties, such as collateral or contingency clauses.

Consult with an estate planning attorney to see if a private annuity sale can help reduce your estate tax exposure. With the right setup, a private annuity sale can be a thoughtfully designed element of your legacy plan. If you would like to learn more about annuities and estate planning, please visit our previous posts.

Reference: Kiplinger (November 2025) “Private-Annuity Sale: A Smart Way to Reduce Estate Taxes”

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Keeping Foreign Assets Out of Probate

December 18, 2025

As more families expand their wealth internationally, cross-border estate issues are becoming increasingly common. While diversifying assets across nations can provide stability and opportunity, it also exposes estates to overlapping legal systems. Keeping foreign assets out of probate becomes a big concern. Without proper planning, heirs may face delays, multiple-country taxation and a loss of privacy. Strategic estate planning can prevent those complications and ensure that your global legacy transfers smoothly.

The Challenge of International Probate

When a person dies owning property abroad, their estate may need to go through probate in each country where the property is located. This process can be slow, expensive and subject to conflicting laws. In some jurisdictions, inheritance taxes are much higher, and privacy laws differ significantly from those in the United States.

Conflicting Legal Systems

Countries handle estate distribution differently. While U.S. law emphasizes individual control through wills and trusts, other nations may rely on forced heirship, requiring assets to pass to certain relatives regardless of the will’s terms. This can undermine even the most carefully drafted U.S. estate plans, if foreign assets are not properly structured.

Public Records and Privacy Concerns

Probate is typically a public process, meaning that anyone can access the details of an estate’s assets, debts and beneficiaries. For those with international holdings, this can invite unwanted scrutiny or even fraud. Establishing trusts or foreign holding entities can keep asset ownership private and allow for smoother transfers outside of probate.

Strategies to Keep Foreign Assets Out of Probate

To prevent complications and protect confidentiality, international estate planning should incorporate the following tools:

Revocable living trusts: Transfer foreign assets into a trust during your lifetime to avoid probate and ensure continuity of management.
International wills: Some countries recognize “international wills” under the Hague Convention, helping simplify legal recognition.
Foreign holding companies or LLCs: Use legal entities to consolidate ownership and minimize exposure to multiple probate processes.
Tax coordination: Work with advisors familiar with international tax treaties to prevent double taxation on inherited assets.

These strategies create efficiency, reduce administrative costs and ensure that assets reach intended beneficiaries without interference from conflicting laws.

Protecting Global Wealth for Future Generations

For individuals with assets abroad, keeping foreign assets out of probate can have a major impact on their legacy. Estate planning tailored to their unique situation is key to managing risk and preserving control. Working with an attorney experienced in both probate and international estate law can help you build a coordinated plan that aligns your foreign and domestic holdings. Taking these steps today ensures that your loved ones won’t have to navigate costly international probate procedures tomorrow. If you would like to learn more about estate planning for international assets, please visit our previous posts.

Reference: Forbes (Jan. 29, 2019) “6 Ways to Protect Your Foreign Assets in Estate Planning”

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Build a Lasting Legacy with a Dynasty Trust

December 16, 2025

For many families, traditional estate plans focus on transferring assets to children and grandchildren. However, what if your goal is to protect your wealth for generations far beyond that? Building a lasting legacy with a dynasty trust allows you to do exactly that. These trusts can preserve and grow family assets for decades or even centuries. As such, dynasty trusts have become a powerful tool for those seeking to ensure that their hard-earned wealth continues to benefit future descendants.

What Is a Dynasty Trust?

A dynasty trust is a long-term, multi-generational trust that can last for many decades, depending on state law. Unlike standard trusts that end once assets are distributed to beneficiaries, a dynasty trust continues operating, reinvesting income and providing controlled distributions to multiple generations.

These trusts are typically irrevocable, meaning their terms can’t easily be changed once established. This rigidity provides both asset protection and long-term continuity, making them ideal for families seeking to preserve wealth against taxes, creditors and changing circumstances.

The Advantages of Long-Term Planning

Dynasty trusts combine asset growth with protection, ensuring that your estate remains intact over time. Some key benefits of a dynasty trust include:

Tax efficiency: Properly structured dynasty trusts can minimize or eliminate estate and generation-skipping transfer (GST) taxes.
Asset protection: Assets held in trust are generally shielded from beneficiaries’ creditors, lawsuits, or divorces.
Financial discipline: Trustees manage distributions according to specific guidelines, reducing the risk of misuse or depletion.
Continuity of purpose: The trust can include mission statements or family principles to guide future generations.

By building these provisions into the trust, you create not just a financial plan but a roadmap for family stewardship.

Funding and Managing a Dynasty Trust

Dynasty trusts can hold a wide range of assets, including real estate, investments, business interests and life insurance policies. Once funded, they must be managed in accordance with both federal and state laws. Some states have abolished or extended their rule against perpetuities, allowing dynasty trusts to last indefinitely.

Choosing the right jurisdiction and trustee is essential. Many families use fiduciaries to ensure impartial management and compliance with complex tax requirements. A knowledgeable estate planning attorney can help you select the optimal state and structure to maximize both longevity and flexibility.

Building an Lasting Impact for your Family

A dynasty trust is both a wealth preservation tool and a statement of intent. It allows families to define how they want their resources used to educate, empower and protect future generations. By building a dynasty trust, you can ensure that your wealth continues to serve as a lasting legacy long after your lifetime, fostering stability and opportunity within your lineage. If you would like to learn more about trust planning, please visit our previous posts.

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Reference: Investopedia (July 28, 2025) “Dynasty Trusts: The Quiet Tool for Preserving Wealth for Generations”

Far More Risks than Benefits to a DIY Will

December 8, 2025

In an age where everything from taxes to home sales can be handled online, it’s easy to believe that creating a will should be just as simple. However, when it comes to estate planning, shortcuts can lead to devastating consequences. DIY wills created without legal oversight may appear valid on the surface, yet fail under scrutiny, leaving families tangled in disputes and estates tied up in probate. True legacy protection requires precision, foresight and experienced guidance. There are far more risks than benefits to a DIY will. Don’t risk losing your legacy.

Why DIY Wills Often Fail

Every state has its own requirements for what makes a will legally enforceable. A simple oversight, such as a missing signature, improper witnessing, or unclear language, can invalidate the entire document. Online templates and handwritten forms rarely account for the nuances of state law or the complexities of blended families, business ownership, or significant assets.

Common Problems with DIY Wills

Ambiguous wording: Generic phrasing can lead to disputes over interpretation.
Outdated information: DIY documents often go unreviewed as family or financial circumstances change.
Incorrect execution: Missing witnesses or notarization can render the will invalid.
Failure to plan for contingencies: Many DIY wills lack provisions for alternate beneficiaries or executors.

When mistakes like these occur, the court decides how assets are distributed — not you.

The Hidden Costs of Saving Money

Many people turn to DIY wills to avoid legal fees. However, those initial savings often pale in comparison to the cost of fixing mistakes later. Heirs may face:

Lengthy probate delays
Costly legal challenges
Family conflict over unclear instructions

In some cases, the estate’s value can shrink significantly due to litigation and administrative costs, erasing what the will was meant to protect.

Experienced Estate Planning Offers True Security

An estate planning attorney ensures that every clause of your will aligns with current law and your personal goals. They will explain how there are more risks to a DIY will than benefits. They also coordinate other critical documents, such as trusts, powers of attorney and advance directives, to create a cohesive plan. This holistic approach reduces confusion, prevents disputes and provides continuity if circumstances change.

Protect Your Family from Unintended Consequences

A will is a legal expression of your final wishes. Experienced estate planning transforms your intentions into legally sound documents that stand up in court and keep your loved ones out of conflict. Working with an experienced probate and estate attorney ensures that your legacy remains intact, your assets are distributed as intended and your family avoids unnecessary hardship. If you would like to learn more about the pitfalls of DIY planning, please visit our previous posts.

Reference: Forbes (July 29, 2019) “Why Writing Your Own Will Is a Bad Idea”

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Avoiding Probate Is Key to Protecting Your Legacy

November 25, 2025

Probate is the court process that validates a will, appoints an executor, gathers assets, pays creditors and authorizes distributions. It exists to protect heirs and creditors. However, it can add months of delay, court fees and public filings that many families would rather avoid. Avoiding probate is key to protecting your legacy. The good news is that a handful of simple tools can help most households sidestep the bulk of the process, while keeping their plan clear and coherent.

What Probate Actually Does

Probate converts a will into a court-ordered document. In some states, it is streamlined; in others, it can be slower and more expensive. Either way, it is public by default. Petitions, inventories and some accountings may be part of the court file. If privacy and speed matter to your family, it pays to minimize the amount that must pass through the court.

When Skipping Probate Makes Sense

Avoiding probate is most beneficial when beneficiaries require immediate access to funds for housing, tuition, or medical expenses, when family members reside in different states, or when there is real estate in multiple states that could result in multiple court cases. It also helps when you value privacy and want to minimize the disclosure of net worth and family relationships.

Simple Paths That Bypass Court

Life insurance, retirement plans and many bank and brokerage accounts can pay directly to named individuals or to a trust. Use both primary and contingent beneficiaries, so money has a clear path even if someone dies first.

Transfer on death and payable on death

TOD and POD tools allow many financial accounts, and, in some states, real estate, to pass with a recorded form instead of a court order. Confirm how your state handles deeds and what documentation the custodian or recorder requires at death.

Revocable living trust

A living trust holds assets during life and directs distribution afterward. If funded properly, it lets your trustee act without opening a probate estate. Trusts are especially useful for real estate, closely held business interests and accounts that benefit from centralized management.

Joint ownership

Joint tenancy with right of survivorship can move property to a co-owner at death. Use it sparingly. Adding a name for convenience can create gift issues, creditor exposure and family disputes if expectations are unclear.

Avoiding Conflicts Between Documents

Your will, trust and beneficiary forms must tell one coherent story. If the trust makes staggered distributions for a young or vulnerable beneficiary, do not name that person directly on the accounts. If the trust owns real estate, ensure that the deed is titled in the name of the trustee. Maintain a single asset map that lists each account, its current location, the account’s title and the named beneficiary.

Practical Steps to Avoid Probate Today

Collect and review all beneficiary forms. Add contingents and remove any “estate” beneficiaries that would force court involvement. Record TOD deeds where available and confirm titling on joint property.

Centralize documents, logins and contact information for custodians, so your executor and trustee can act quickly. Finally, add a short letter of instruction that explains what you want sold, what you want kept and how you want personal items handled.

How A Probate Lawyer Can Help

Avoiding probate is key to protecting your legacy. A probate lawyer can estimate the time and cost of court proceedings in your state, then design a bypass plan that utilizes designations, TOD or POD tools and a revocable trust where appropriate. Counsel can harmonize deeds, update forms and coordinate with custodians so paperwork is accepted the first time. If you want a faster and more private transition, schedule a consultation to map your assets, align your titles and forms and limit what must enter the courthouse. If you would like to learn more about probate, please visit our previous posts.

Reference: Forbes (May 24, 2024) “Why Skipping Probate Could Save Time And Money”

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Retirees Should Adjust Planning With Four Big Changes in Mind

November 20, 2025

Retirement planning is never static. Tax laws evolve, healthcare costs shift and investment conditions change sometimes dramatically. For retirees, these changes can affect everything from monthly income to estate strategies. Understanding recent adjustments in tax policy and retirement rules can help ensure that your plan remains stable and sustainable. Retirees should adjust planning with four big changes in mind.

Changing Tax Rules for Retirees

Tax planning remains one of the most potent tools for preserving retirement income. Recent federal adjustments have affected both Social Security taxation and retirement account withdrawals. For instance, higher-income retirees may see a greater portion of their Social Security benefits taxed, while inflation adjustments have shifted income brackets slightly upward.

These changes make tax diversification more critical than ever. Retirees who rely solely on traditional 401(k)s or IRAs, where withdrawals are taxed as income, could face higher overall taxes in retirement. Combining pre-tax, Roth and taxable investment accounts provides flexibility to manage income levels strategically each year.

Adjusting to Required Minimum Distribution Rules

One of the most significant changes in recent years involves Required Minimum Distributions (RMDs). The starting age for RMDs has risen to 73, giving retirees more time to grow assets tax deferred. However, waiting too long to begin withdrawals can result in larger future distributions and higher tax bills later in life.

Some retirees may benefit from partial Roth conversions in their early 60s, especially during lower-income years before Social Security or RMDs begin. Spreading conversions over several years can reduce future taxes and provide more control over income in later retirement.

The Ongoing Impact of Healthcare and Long-Term Care Costs

Healthcare remains one of the most significant expenses for retirees. Medicare premiums are expected to rise, and out-of-pocket costs for prescription drugs and long-term care continue to increase. Without planning, these expenses can quickly erode savings meant for other goals.

Health Savings Accounts (HSAs), when used properly, offer a tax-efficient way to prepare for medical costs. Funds grow tax-free and can be used for qualified expenses at any time, even in retirement. Retirees should also consider long-term care insurance or hybrid life insurance policies that include care benefits to reduce financial strain later.

Inflation and Market Volatility

Even modest inflation can significantly affect retirees who live on fixed incomes. While 2024 and 2025 have seen periods of stabilization, retirees should continue planning for long-term inflation by balancing income and growth investments.

Bond-heavy portfolios, while stable, may struggle to keep pace with inflation over the long term. Adding moderate exposure to dividend-paying stocks, real estate, or inflation-protected securities (TIPS) can provide resilience. Working with a financial advisor to review investment allocations annually ensures that risk levels remain appropriate.

Integrating Legal and Financial Planning

Estate planning and retirement planning are inseparable. Changes to tax law, account rules and estate exemptions can affect how assets transfer to heirs. Retirees should review beneficiary designations, update wills or trusts and ensure that powers of attorney and healthcare directives are current.

An estate planning attorney can help retirees adjust their planning with these four big changes in mind. They can align investment and withdrawal strategies with legacy goals. This integration ensures not only tax efficiency but also future protection for beneficiaries. If you would like to learn more about planning for retirement, please visit our previous posts.

Reference: Kiplinger (Aug. 10, 2025) “Retirees Should Watch These Four Key Tax Changes in 2025”

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Spousal Lifetime Access Trusts can Protect Your Partner

November 18, 2025

For couples with significant assets, planning for the future is necessary to ensure financial security for the surviving spouse while minimizing tax exposure. Spousal Lifetime Access Trusts can protect your partner when you are gone. Often called a SLAT, it offers an effective way to achieve both goals. Combining long-term protection with ongoing access to funds helps preserve family wealth while maintaining flexibility.

Understanding Spousal Lifetime Access Trusts

A Spousal Lifetime Access Trust is an irrevocable trust created by one spouse for the benefit of the other. The grantor transfers assets, such as investments, real estate, or business interests, into the trust, thereby removing them from their taxable estate. The non-grantor spouse can then receive income or distributions from the trust during their lifetime.

This arrangement provides a balance between tax efficiency and practical access. It allows couples to reduce the size of their taxable estate while keeping resources available should unexpected expenses or financial changes arise.

How SLATs Protect Wealth

One of the main advantages of an SLAT is its ability to shield assets from future estate taxes. With current federal exemption limits set at historically high levels, couples can transfer substantial wealth now and lock in those benefits before potential tax law changes reduce the threshold.

The trust also serves as a form of asset protection. Once transferred, the assets generally cannot be reached by the grantor’s or the beneficiary’s creditors. This makes SLATs appealing to business owners and high-net-worth families seeking long-term security.

In many cases, the trust can also distribute income to the beneficiary spouse, ensuring that the family continues to benefit from the assets even though they are no longer part of the grantor’s estate.

Key Structural Considerations

While powerful, SLATs require careful design. Because they are irrevocable, the grantor cannot reclaim the assets after transferring them. Couples must ensure that they retain sufficient liquidity and income outside the trust to maintain their standard of living.

If both spouses create SLATs for each other, the trusts must differ meaningfully to avoid triggering the “reciprocal trust doctrine.” This IRS rule can invalidate tax benefits if two trusts are too similar, effectively treating each spouse as if they never transferred the assets in the first place.

Working with an experienced estate planning attorney helps ensure that each trust is structured uniquely using different funding sources, timing, or distribution terms to comply with IRS standards.

When to Consider a SLAT

A Spousal Lifetime Access Trust is particularly beneficial for couples with taxable estates who want to take advantage of the current high federal estate tax exemptions, which are set to increase from $13.99 million per person to $15 million for 2026. It’s also ideal for individuals who wish to preserve family wealth without cutting off financial flexibility for their spouse.

In addition, SLATs can complement other estate planning tools, such as irrevocable life insurance trusts or charitable trusts. By layering strategies, couples can maximize protection and tailor distributions to meet both personal and philanthropic goals.

Balancing Flexibility and Finality

Because SLATs are permanent, they require both foresight and discipline. Once assets move into the trust, they are beyond the grantor’s reach. However, that finality is what gives them their power. The trust ensures that estate taxes, legal claims, or financial mismanagement will not erode assets.

Spousal Lifetime Access Trusts can protect your partner when you are gone. Couples who thoughtfully design SLATs often find peace of mind knowing that their partner will be cared for, no matter what happens. If you would like to learn more about SLATS, please visit our previous posts.

Reference: Forbes (Sep. 30, 2025) “Spousal Lifetime Access Trusts: A Strategic Estate Planning Tool”

Pour-Over Will is a Safety Net for Your Estate Plan

November 4, 2025

Many families use a living trust to avoid probate and maintain private distribution. In real life, assets are acquired, accounts are opened and paperwork is often overlooked. A pour-over will is a safety net for your estate plan. It directs anything left in your name at death to “pour over” into your trust, so your trustee can follow one set of instructions.

What a Pour-Over Will Does

It names your trust as the beneficiary of your probate estate. If you forget to retitle an account or receive an unexpected payment, the trustee will gather those items and route them to the trust. You get unified control of who inherits, when and how, because the trust’s terms apply to everything that pours over.

Benefits of a Pour-Over Will

Use it whenever you have a revocable living trust. It is helpful if you own property in multiple places, expect new accounts or inheritances, or want the trustee to manage holdbacks for minors, spendthrift protections, or staged distributions.

When Not to Use a Pour-Over Will

A pour-over will does not avoid probate for assets still titled in your name. Those items may still require a court process before they reach the trust. It does not replace beneficiary designations on life insurance or retirement accounts. It does not solve funding errors for out-of-state real property without additional planning.

How To Set Up a Pour-Over Will Correctly

Coordinate Documents

Your will must correctly identify your trust by name and date. Keep the trust and will stored together and update both after significant life events.

Fund the Trust During Life

Retitle key assets into the trust now, then use the pour-over will as a backstop. Add transfer-on-death or payable-on-death designations where appropriate, aligned with the trust plan.

Name the Right Fiduciaries

Choose an executor who can move promptly and a trustee who understands the trust’s instructions. Add alternates in case a first choice is unavailable.

Coordination With Beneficiaries and Taxes

A pour-over will is a safety net for your estate plan. Confirm that beneficiary designations on retirement plans and insurance align with the trust. If your trust includes tax planning or special needs provisions, verify that the pour-over will capture assets that must pass through those provisions. Keep a concise asset list with locations, so your executor and trustee can act promptly. If you would like to learn more about pour-over wills, please visit our previous posts.

Reference: NerdWallet (Sep. 16, 2025) “What Is a Pour-Over Will and How Does It Work?”

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Keep Certain Assets Out of a Trust to Avoid Probate

October 30, 2025

Living trusts are often praised as the cornerstone of avoiding probate. By transferring assets into a trust, individuals can ensure a smoother transition of wealth to heirs, often bypassing costly and time-consuming court proceedings. Yet, despite their benefits, not all property is well-suited for titling in a living trust. Including the wrong assets can create unintended tax consequences, legal complications, or unnecessary administrative burdens. It is wise to keep certain assets out of a living trust to avoid probate.

Understanding Living Trusts

A living trust is a legal entity that holds assets during a person’s lifetime and directs their distribution upon death. It provides flexibility, privacy, and efficiency compared to a will. However, it is not a one-size-fits-all solution. Certain assets are best kept outside of the trust to ensure they function as intended.

Retirement Accounts and Living Trusts

One of the most common mistakes in trust planning is transferring retirement accounts, such as IRAs, 401(k)s, or pensions, into a living trust. Federal tax rules treat these accounts differently, requiring that they remain in the individual’s name until withdrawal or distribution.

If a retirement account is retitled in the name of a trust, it could trigger immediate taxation of the full balance. Instead, individuals should use beneficiary designations to transfer these assets directly to their heirs, preserving tax advantages such as “stretch IRA” benefits where applicable.

Vehicles and Living Trusts

Cars, trucks, and other vehicles are generally poor candidates for trust ownership. The administrative burden of retitling, insurance complications, and the frequency of buying or selling make them impractical to place in a trust.

In most states, small estate provisions allow vehicles to pass outside of probate without issue. Unless a car is a valuable collector’s item or part of a business, keeping it in personal ownership usually makes more sense.

Health and Medical Savings Accounts

Like retirement accounts, Health Savings Accounts (HSAs) and Medical Savings Accounts (MSAs) have unique tax treatments that do not align with trust ownership. Instead, owners should assign beneficiaries directly through the account provider. Upon death, the funds transfer smoothly to the named beneficiary.

Assets with Named Beneficiaries

Life insurance policies, payable-on-death (POD) bank accounts, and transfer-on-death (TOD) securities accounts already bypass probate when a beneficiary is named. Including these assets in a trust is redundant and can even complicate matters. Ensuring that beneficiary designations are up to date often provides a more straightforward path.

Mortgaged Property

While real estate is often placed into a trust, property with outstanding mortgages requires careful planning and consideration. Transferring a home with a mortgage into a trust may trigger concerns or due-on-sale clauses from lenders. Proper legal guidance ensures compliance with both trust law and lending agreements.

When to Seek Guidance

It is wise to keep certain assets out of a living trust to avoid probate. Estate planning is a deeply personal process, and what works for one family may not be suitable for another. An estate planning attorney can help evaluate which assets should be placed in a trust and which should remain outside. They also ensure that excluded assets are transferred through other probate-avoidance methods, such as beneficiary designations or joint ownership structures.

If you are considering creating or updating a living trust, consulting with an estate planning attorney ensures your trust is both practical and efficient. If you would like to learn more about placing assets in a trust, please visit our previous posts.

Reference: Yahoo Finance (September 11, 2025) “If you want your kids bypass probate when you die, here are 5 assets to avoid putting in a living trust”

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Protect Your Child’s Inheritance in a Second Marriage

September 24, 2025

Having a revocable trust may or may not protect assets for biological children on the death of their parent if the parent has remarried. This is why a recent article from the New Hampshire Union Leader, “Know the Law: Ensuring Assets go where you want in your revocable trust,” advises readers to speak with an experienced estate planning attorney about how to protect your child’s inheritance in a second marriage.

Surviving spouses in many states are permitted to claim an elective share of their deceased spouse’s estate to avoid being disinherited or being inadequately provided for when the spouse dies. If the decedent has children, the surviving spouse is entitled in some states to one-third of the probate estate. In some states, revocable trust assets are not automatically included as part of the decedent’s probate estate.

If there are assets in a revocable trust for children, they may be protected if the surviving spouse waives testate distribution and decides they’d rather claim the statutory elective share. Under certain circumstances, the surviving spouse could ask the court to set aside transfers of assets made into the revocable trust. If the court determines the transfers were invalid, then the revocable trust will become part of the probate estate and part of the elective share calculation.

In some states, the scope of the statutory elective share automatically includes assets in revocable trusts. Suppose someone moves from a state where this is not the case to a home in a state where revocable trust assets are considered part of the probate estate for elective share purposes and the estate is probated in the new state. In that case, that portion of the revocable trust assets will be available to the surviving spouse.

If the revocable trust isn’t fully funded and the assets intended to go into the trust remain in the spouse’s name, such as bank accounts and real estate, those assets will also be part of the probate estate.

Depending upon the plan rules and state laws, surviving spouses may also automatically be the beneficiary of any qualified retirement accounts, like 401(k)s or 403(b)s. Unless the spouse waives their right to the survivor benefits, they are, in most cases, the only person who will receive the pension assets.

Concerns about not disinheriting children from a prior marriage are often addressed through estate planning. However, a pre-nuptial agreement could also define what each spouse would be entitled to in the event of a divorce or when each spouse dies.

A consultation with an estate planning attorney in your state should take place to protect your child’s inheritance in a second marriage. It’s best to address the issues before walking down the aisle to prevent any misunderstandings in the future and start a new marriage with a clean slate. If you would like to learn more about remarriage protection, please visit our previous posts.

Reference: New Hampshire Union Leader (Aug. 18, 2025) “Know the Law: Ensuring Assets go where you want in your revocable trust”

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Category: Asset Protection