While wealth management focuses on growing and optimizing assets during your lifetime, estate planning ensures those assets are passed on efficiently. Together, they help:
✅ Preserve family wealth – Prevent unnecessary taxes and legal disputes.
✅ Maintain control – Dictate how and when heirs inherit assets.
✅ Plan for incapacity – Ensure financial and medical decisions are handled properly.
✅ Support business succession – Smoothly transfer ownership of family businesses.
Key Estate Planning Tools for Wealth Management
1. Wills & Trusts
- Last Will & Testament – Basic document for asset distribution (but goes through probate).
- Revocable Living Trust – Avoids probate, maintains privacy, and allows for incapacity planning.
- Irrevocable Trusts – Reduces estate taxes, protects assets from creditors.
2. Power of Attorney & Healthcare Directives
- Financial POA – Authorizes someone to manage finances if you’re incapacitated.
- Healthcare Directive – Specifies medical wishes and appoints a decision-maker.
3. Beneficiary & Ownership Structuring
- Retirement Accounts (IRAs, 401(k)s) – Ensure beneficiary designations are updated.
- Joint Ownership & TOD/POD Accounts – Automatically transfer assets outside of probate.
4. Tax-Efficient Wealth Transfer Strategies
- Annual Gifting – Use the $18,000/year gift tax exclusion (2024) to reduce taxable estate.
- Life Insurance Trusts (ILITs) – Keep life insurance proceeds out of your taxable estate.
- Charitable Trusts (CRTs & CLTs) – Support charities while gaining tax benefits.
5. Business Succession Planning
- Buy-Sell Agreements – Prevents disputes in family-owned businesses.
- Family Limited Partnerships (FLPs) – Facilitates tax-efficient wealth transfer.
When to Review Your Estate & Wealth Plan
🔹 Every 3-5 years (or after major life events like marriage, divorce, or births).
🔹 After significant financial changes (inheritance, business sale, large investments).
🔹 When tax laws change – New legislation may impact your strategy.
