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”

Image by StarFlames

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”

Image by Julita

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”

Portability Doesn’t Happen Automatically

November 13, 2025

Portability allows a surviving spouse to use any “leftover” estate tax exclusion from the first spouse to die. It’s a powerful estate planning technique, according to a recent article in Think Advisor, “This Estate Tax Filing Mistake Can Cost Clients Millions.” However, portability doesn’t happen automatically.

To secure portability, the executor of the first deceased spouse’s estate must file a Form 706—known as an estate tax return—to elect portability, and it must be filed in a timely manner and be properly prepared.

This is necessary even if no estate tax is otherwise due from the deceased spouse’s estate. Given the high federal estate tax exemption, most affluent couples nearing the threshold don’t need to file the form. However, it’s still worth filling it out. Here’s why.

A husband who dies with $5 million in assets passes that along to his wife, who may have $10 million of her own. If she lives another 20 years and is invested in markets, her wealth upon her death could be very close to or over the maximum estate tax exemption for a single person. If she secures portability at the time of her husband’s death, she can use his remaining estate tax exemption amount and avoid significant estate tax when passing wealth onto her heirs.

Even if the first spouse to pass doesn’t come close to the federal estate tax threshold, it still makes sense to take the right steps to secure portability. A recent Tax Court case illustrates how this can go wrong if not done correctly. A successful midwestern business owner died, and the form wasn’t filled out correctly. The filing mistake cost heirs an additional $1.5 million in estate taxes from the surviving spouse’s estate.

The deadline to elect portability of a deceased spouse’s unused federal estate tax exemption is nine months after the date of death. While your estate planning attorney can request a six-month extension, it’s best to do this in a timely manner. If the estate isn’t otherwise required to file an estate tax return, you can use the Revenue Procedure 2022-32. This was added after many estates failed to file for portability because they didn’t realize it was needed until after the federal estate tax return was due.

This process is not easy and involves several important steps, especially if any of the first-to-die spouse’s assets flow to anyone other than the surviving spouse or a charity. In these situations, assets flowing out of the first estate must be assigned a fair market value using a valuation professional.

The IRS provides a valuation method for estates filing solely to capture portability. An executor may use a good-faith estimate of the value. However, securing a professional valuation may be recommended by your estate planning attorney.

The Tax Court case referred to above illustrates how this process can go wrong. The assets passed down by the first spouse to die went to other family members, not her spouse or a charity. A proper valuation was not done. The executor also applied for an automatic extension to file Form 706 but failed to mail the return until five months after the extended deadline. There are some instances when the IRS provides a “safe harbor” for late filing. However, this only applies when the value of the first deceased spouse’s estate is less than the applicable exclusion amount. The return was not complete, nor was it properly prepared.

Portability is a beneficial option and shouldn’t be missed, even when it seems unlikely to be needed. Just remember – portability doesn’t happen automatically. An experienced estate planning attorney should be consulted to protect the estate upon the death of the first spouse to secure portability. If you would like to learn more about portability and estate planning, please visit our previous posts.

Reference: Think Advisor (October 15, 2025) “This Estate Tax Filing Mistake Can Cost Clients Millions”

Photo by RDNE Stock project

A Cross-Border Strategy is Needed for Estate Planning with Assets Overseas

November 11, 2025

Ultra-high-net-worth families often live, invest and give across borders. A plan that works in one country can misfire in another. Different rules on domicile, tax residency, marital property and forced heirship can alter who inherits and how much tax is due. Institutions may also block access to accounts until local requirements are met. A cross-border strategy is needed for estate planning with assets overseas. It brings these moving parts into one coherent framework, so heirs receive what you intend with fewer delays and fewer surprises.

Where Plans Break Across Borders

Countries define domicile and tax residency in different ways. One country may view you as a resident based on days present, another based on ties such as a home or family. Several civil law jurisdictions enforce forced heirship, which reserves a portion of an estate for children or a spouse regardless of what your will says.

Community property and separate property systems divide marital wealth differently. Without alignment, the same asset can face competing claims or double taxation. Bank secrecy and data rules can also slow access, especially when fiduciaries lack translated and apostilled documents.

Building A Multi-Jurisdiction Framework

Begin by documenting where you are treated as tax resident and where you are domiciled. Keep residency certificates, visa records and professional analyses that explain treaty positions.

Next, identify succession rules that could override your choices. Some jurisdictions allow you to elect the law of your nationality or habitual residence to govern your estate. Make that election clearly in your will or trust if it is available and ensure that each country where you hold assets will honor it.

Align legal structures with asset locations. Company shares, private funds and real estate often benefit from situs-appropriate holding entities or trusts that are recognized locally.

Confirm whether the jurisdictions you care about recognize common law trusts, civil law foundations, or both. Where recognition is limited, consider alternatives such as shareholder agreements, life insurance wrappers, or local testamentary tools.

Coordinating Fiduciaries and Access

Execution details matter. Appoint executors and trustees who can act in each country or name local co-fiduciaries where required. Prepare notarized and apostilled copies of core documents and translations into the languages your institutions require.

Maintain a secure inventory of accounts, safekeeping locations and key relationships, along with device passcodes and instructions for two factor authentication. These access steps are as necessary as the legal documents, since many institutions will not release information without them.

Philanthropy, Art, And Liquidity

Cross-border philanthropy can trigger registration, reporting, or withholding. Decide whether to use a single foundation, parallel entities, or donor-advised funds in more than one country, for art, yachts, aircraft and collectibles, track situs, export and cultural property restrictions and insurance conditions.

Plan liquidity for taxes that may be due before private business interests or real estate can be sold. Consider credit facilities, life insurance, or staged distributions to avoid forced sales at a discount.

Using Multiple Wills Safely

Many families benefit from separate wills for different countries. Each will should cover only assets in its jurisdiction and should state that it is limited in scope so it does not revoke the other will. Coordinate signing formalities, witnesses and governing law choices. Keep originals and certified copies in a location where fiduciaries can easily access them.

How An Estate Planning Law Firm Can Help

An estate planning law firm with cross-border experience can map domiciles and residencies, make governing law choices where permitted and tailor trusts or entities that local courts and registries recognize. A cross-border strategy is needed for estate planning with assets overseas. If your life spans more than one country, schedule a consultation so a lawyer can align documents, structures and access protocols before a crisis forces hurried decisions. If you would like to learn more about estate planning for assets overseas, please visit our previous posts.

Reference: Forbes (September 24, 2025) “Cross-Border Estate Planning Guide, Essential Strategies For Ultra High-Net-Worth Families”

Image by Abdulhakeem Samae

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?”

Image by Dave Russell

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”

Photo by Mingyang LIU

Preparing an Estate Plan when Children Live in Another State

October 7, 2025

Zoom calls, text groups and old-school phone calls make staying in touch with adult children and grandchildren far easier than in the past. However, there are some things where being in a different state requires extra care. Preparing an estate plan when children live in another state, is one example. When the time comes to set an estate plan in place, it’s critical to know how estate plans are managed in other states, according to a recent article, “Estate plans can get complicated with out-of-state children” from the Cleveland Jewish News.

Every state has its own rules, and, in some cases, every local court has its own rules. In one state, the probate court may be fine with having an out-of-state executor. However, some states may not allow an out-of-state executor without having an additional in-state co-executor. Alternatively, they may require the out-of-state executor to post a bond, which can incur additional costs and be invasive, as it involves a credit check.

The easiest way to avoid this is by having estate planning in place long before it’s needed. This may not be top of mind when people are in their 40s or 50s. However, the general rule is that if you have assets, you need an estate plan.

Even college students or recent grads who only have savings and checking accounts need an estate plan. Parents of students over 18 need to be designated as their child’s health care power of attorney, so they can make medical decisions for their child. Anyone going off to college needs to have both a financial POA and a healthcare power of attorney document.

Suppose all the children live out of state. In that case, it is a good idea to establish a relationship with an estate planning attorney and other financial professionals so they can step in if the family can’t be present to pull together the many documents needed to settle an estate. While it’s not unusual for an estate planning attorney to go to a deceased person’s home and dig through their paperwork to find tax returns and financial records, it’s not ideal. It would be far better for family members to take care of these tasks in advance.

How property is left to heirs is also governed by state law and could result in different family members receiving different amounts. For example, Ohio doesn’t have an inheritance tax, but Pennsylvania does. One heir could find their inheritance decreased significantly because of an inheritance tax, while another would receive their inheritance tax-free.

You’ll want to be sure there are no ambiguities in the estate plan so the executor will have clear directions. Preparing an estate plan when children live in another state doesn’t have to be hard. A conversation with your estate planning attorney and executor in advance of your death could feel a bit macabre. However, it could prevent a host of problems in the future. If you would like to learn more about estate planning, please visit our previous posts.

Reference: Cleveland Jewish News (Sep. 10, 2025) “Estate plans can get complicated with out of state children”

Photo by August de Richelieu

Combining Philanthropy with Estate Planning

September 30, 2025

If you have a goal of combining your philanthropy with your estate planning, there are strategies to be tax-smart in your giving. Tax smart giving takes advantage of charitable gifting rules to help charities while increasing tax efficiency. Like all estate planning, philanthropy should be intentional and strategic, requiring careful planning with an experienced estate planning attorney. A recent article from The Wall Street Journal, “Giving Smarter: Tax-Savvy Philanthropy for Wealthy Families,” explains how smart giving tactics can reduce taxes while creating a legacy of giving.

Tools include Donor Advised Funds (DAFs), Charitable Remainder Trusts (CRTs), Charitable Lead Trusts (CLTs) and Qualified Charitable Distributions (QCDs).

The DAF offers a simple way to make deductions up front and take a bigger deduction without giving the entire donation at once. Some benefits of a DAF include receiving an immediate tax deduction, avoiding long-term capital gains taxes if long-term appreciated assets are donated, simplified record keeping and relatively low fees. The best results from a DAF come from directly donating appreciated assets, such as stocks or mutual fund shares.

Charitable Remainder Trusts are a means of creating a steady stream of income for a charity. The CRT assumes you’ll give money to a set of beneficiaries over a specific period. At the conclusion of the trust, the charity receives the remainder. The tax deduction is immediate and appreciated assets sold within the trust are free of capital gains taxes. CRTs are irrevocable, which needs to be kept in mind while creating the tax-savvy estate plan.

A Charitable Lead Trust takes a different approach. The trust provides income to charities for a specific period. At the end, any assets in the trust go to the beneficiaries named in the trust. A CLT is also irrevocable. This can work to reduce the taxable value of the estate and allow assets to be passed on to beneficiaries. There are state laws to consider, so you’ll need the help of an experienced estate planning attorney.

These trusts require careful planning and consideration considering your overall long-term goals as well as your philanthropic goals.

For very high-net-worth people, a family foundation offers a high degree of control and provides tax benefits. However, a family foundation must have a charitable purpose, and a certain percentage of net assets must be distributed to charity annually. A 990-tax form must be filed, an excise tax will be due,and meticulous records must be kept. While family members can receive compensation for working in the family foundation, any payments must be reasonable, and the foundation must be in line with 401 (c)(3) regulations. A DAF may be an easier way to gain similar advantages with far less paperwork.

Talk with your estate planning attorney to ensure that your philanthropy combines with your overall estate planning goals. A philanthropic legacy doesn’t have to involve millions. However, at any level of wealth, a plan ensures that your wishes are followed and you reap tax benefits. Accomplishing both takes planning. If you would like to learn more about charitable giving, please visit our previous posts.

Reference: The Wall Street Journal, Aug. 14, 2025, “Giving Smarter: Tax-Savvy Philanthropy for Wealthy Families”

Photo by Sena Shot ®

When Your First Choice of Trustee Declines

September 22, 2025

Even the most trusted family member or friend may decline to serve as trustee. The role can be demanding, involving complex legal responsibilities, financial oversight and ongoing reporting obligations. Some individuals may lack confidence in managing investments or navigating government benefits for people with special needs. Others may be concerned about the time commitment or potential conflicts with other beneficiaries. It can be a challenge when your first choice of trustee declines.

Understanding the reasons for a refusal can help you adjust your approach. Sometimes the concern is about specific duties, which may be alleviated by offering professional assistance or co-trustee arrangements. In other cases, it may be a firm decision based on personal capacity or life circumstances.

Alternatives to Your First Choice

If your chosen trustee declines, you have several paths forward. A successor trustee named in the trust document can step in without disrupting the trust’s administration. If no individual successor is available or suitable, a professional trustee, such as a bank trust department, law firm, or nonprofit specializing in special needs trusts, can assume the role.

These professionals bring expertise in managing assets, complying with special needs rules and safeguarding eligibility for government benefits. While they charge fees, the tradeoff is often greater consistency, neutrality and adherence to complex legal requirements.

Preparing a Strong Backup Plan

Naming multiple successor trustees in the trust document reduces uncertainty if someone declines or becomes unable to serve. You can also consider appointing co-trustees, pairing a trusted family member with a professional trustee to combine personal knowledge of the beneficiary’s needs with technical expertise.

Another strategy is creating a detailed letter of intent to guide any trustee who assumes the role. This document should outline the beneficiary’s preferences, daily routines, medical needs and long-term goals. While not legally binding, it helps preserve your vision for the trust even if the trustee changes.

Experienced Third-Party Trustees

If you’re setting up or revising a special needs trust, an elder lawyer with experience in this area can help. They can work with you to identify suitable trustee candidates, draft backup provisions, or their firm can even manage the trust. Consult closely with your estate planning attorney to ensure you a have a plan in place when your first choice of trustee declines. If you would like to learn more about the role of the trustee, please visit our previous posts.

Reference: The Washington Post (Nov. 29, 2024) “Asking Eric: Friend doesn’t want to manage my disabled son’s finances when I’m gone”

Photo by Photo By: Kaboompics.com

Category: Assets