Estimated Read Time: 5 minutes
Key Takeaways:
- Why estate planning is about more than just taxes or wealth
- How legal tools (i.e. trusts) can support your goals
- The risks you take if you delay planning
- Why estate planning is important for all ( not just wealthy) families
Now that the tax bill has passed and the federal estate tax exemption is set to rise to $15 million, some high-net-worth individuals are putting off estate planning. If you no longer face an estate tax bill, what’s the rush?
But estate planning isn’t just about taxes. It’s about protecting your family, preserving what you’ve built, and making sure your wishes are followed. Done well, it actually increases your control—not just over your wealth, but over how it benefits the people and causes you care about most.
Why Do People Delay Estate Planning?
Many people hesitate to start estate planning because they assume it means giving up access, income, or control. They picture a locked-up trust they can’t touch or rules they can’t change. That’s not how modern estate planning works.
Today’s estate planning tools are designed to be flexible. You can protect your assets, reduce future taxes, and still maintain access to income—or even the principal—when needed. More importantly, you’re the one making the decisions, rather than leaving your family to figure it out later.
What Do You Want to Be Known For?
The best estate plans begin with a simple question: what do you want your legacy to be?
That could mean caring for a spouse or children, funding education for grandkids, keeping a vacation home in the family, supporting a cause, or preserving a family business. A thoughtful estate plan helps make that vision real. It’s not only about transferring wealth, but about aligning your resources with your values.
Three Tools That Offer Flexibility and Control
Here are three of the most common and useful estate planning tools you might discuss with your attorney:
- Spousal Lifetime Access Trusts (SLATs): A SLAT lets you transfer assets out of your estate while still providing access to your spouse. That means the assets are protected and potentially tax-free—but still available if needed. These are especially useful for married couples and blended families.
- Beneficiary Defective Inheritor’s Trusts (BDITs): A BDIT allows you to move assets out of your estate while giving your beneficiary access to income or principal. It protects assets from creditors and future estate taxes while preserving flexibility for the person receiving the benefit.
- Business Entities: LLCs and FLPs: How you hold assets matters. Placing assets like a family business or investment property into an LLC or Family Limited Partnership can create tax advantages, protect against lawsuits, and provide a smoother path for transferring ownership down the line.
What Happens If You Don’t Plan?
If you pass away without a plan:
- The state decides who inherits your assets. The rules may not reflect your wishes.
- Your family may face delays and court costs. Probate can be time-consuming and expensive.
- No one may be authorized to act on your behalf. Without powers of attorney or healthcare directives, key decisions could fall to the courts or medical providers.
- You could miss major tax-saving opportunities.
Even if you think your situation is simple, not planning usually causes more complexity, not less.
Planning Isn’t Just for the Wealthy
There’s a myth that estate planning only matters if you’re sitting on tens of millions of dollars. In reality, anyone who owns property, has children, or wants a say in how their assets are used should have a plan.
That doesn’t mean you need fancy legal structures. But it does mean putting the right documents in place—like a will, healthcare directive, power of attorney, and possibly a basic trust—so your wishes are carried out and your loved ones aren’t left to guess.
Start With a Conversation
If you don’t have an estate plan—or haven’t looked at it in years—consider talking to an estate planning attorney. You don’t need to know every technical term. What you need is clarity about your goals:
- Who do you want to provide for?
- Are there specific assets you want to preserve or pass down?
- Do you support any charitable causes?
- Are you worried about future taxes, family conflict, or long-term care?
A good advisor will walk you through the options and help you choose the right tools to fit your situation.
One Last Thought
Estate planning isn’t about preparing for death. It’s about planning for life—yours, your family’s, and the future you want to build.
You’ve worked hard to get where you are. A well-crafted estate plan gives you the chance to protect what matters, share it wisely, and create a legacy that lasts.