Fairvoy Private Wealth | Financial Planning
Estate Planning & Wealth Transfer
Estate planning isn’t only for the ultra-wealthy. It’s about making your wishes clear, reducing stress for your family, and helping assets transfer efficiently—whether your estate is simple or more complex.
Fairvoy tip: Many “estate problems” aren’t legal problems—they’re coordination problems: outdated beneficiaries, missing titles, and documents that don’t match how accounts are actually owned.
Quick start
Jump to the topics families ask about most.
Estate planning in plain English
Estate planning is the process of deciding who receives what, when, and how—and appointing people you trust to carry out those decisions if you can’t.
Make your wishes clear
Good planning reduces family stress and helps avoid “guesswork” during an already difficult time.
Align documents with accounts
Your will and trust matter—but so do titles and beneficiary forms on retirement accounts and insurance.
Reduce friction and delay
With the right setup, many assets can transfer quickly outside probate.
Core estate planning documents
In many households under the federal exemption, a strong “baseline” plan is about the right documents and clean beneficiary/titling setup.
| Document | What it does | Common planning notes |
|---|---|---|
| Last Will & Testament | Directs how assets titled in your name (and not otherwise directed) pass at death; names an executor; can nominate guardians for minor children. | A will often still matters even if you have a trust—especially for “pour-over” provisions and guardianship nominations. |
| Durable Financial Power of Attorney | Authorizes someone to act for you financially if you can’t. | Helps avoid court involvement if you become incapacitated. Make sure institutions will accept it. |
| Health Care Power of Attorney | Names your health care decision-maker if you can’t speak for yourself. | Often paired with HIPAA authorization so providers can share information with your agent. |
| Living Will / Advance Directive | States preferences about end-of-life care and life-sustaining treatment. | Reduces burden on family by putting your wishes in writing. |
| Revocable Living Trust (optional) | Can hold assets during your lifetime and direct distribution at death; often used to avoid probate and add control. | A trust only works for assets that are properly titled into it (or otherwise directed to it). |
Will vs. trust: what’s the difference—and do you need a trust?
A will and a trust can work together. The simplest way to think about it: a will tells the court what should happen, while a properly funded trust can often transfer assets without the court process (probate).
| Topic | Will | Revocable living trust |
|---|---|---|
| When it works | At death | During life (management) and at death (distribution) |
| Probate | Often requires probate for assets in your name alone | Can reduce or avoid probate for assets titled in the trust |
| Privacy | Probate filings are generally public | Trust administration is typically more private |
| Ongoing control | More limited; primarily “instructions” | Can add structure for distributions and successor management |
| Cost & upkeep | Usually lower upfront cost; simpler | Higher upfront cost and requires “funding” (retitling) and upkeep |
- They want to avoid probate (especially with property in more than one state).
- They want more control over how and when beneficiaries receive assets.
- They have a blended family, special needs considerations, or want structured planning for children.
- Your assets are primarily in accounts with beneficiaries (IRAs, life insurance) and jointly titled property.
- Your plan is straightforward and your state’s probate process is relatively simple.
- You’re comfortable with how “default” distributions would work in your situation.
How to avoid probate (or at least reduce it)
Probate is the court process that validates a will and oversees distributing certain assets. Avoiding probate isn’t always the goal—but reducing delays and complexity usually is.
Three common “paths” assets can follow
This simple graphic shows how assets typically transfer.
High-impact probate-avoidance ideas
These are common tools that can help assets transfer more smoothly (when used carefully):
- Beneficiary designations on IRAs, 401(k)s, and life insurance (review these regularly).
- Joint ownership with rights of survivorship (understand the pros/cons and family dynamics).
- Payable-on-death (POD) / Transfer-on-death (TOD) registrations for eligible accounts.
- Revocable trust ownership for real estate and non-retirement accounts (once properly funded).
How to choose an executor or trustee
These roles matter because they will be the “point person” coordinating the process with your attorney, CPA, and financial institutions. The best choice is often less about who is closest emotionally and more about who is organized, steady, and fair.
Manages probate and the will
Collects assets, pays bills/taxes, and distributes property according to the will (and court rules if required).
Manages the trust
Follows the trust instructions, invests and distributes assets, and keeps records for beneficiaries.
Name backups
Always name successor(s). Life happens—people move, decline, or can’t serve when the time comes.
Quick decision checklist
What if you have minor children?
When children are minors, the estate plan often needs to answer two separate questions: Who raises the children? and Who manages the money?
A will typically allows you to nominate a guardian. Courts generally consider your nomination seriously, but the final decision is based on the child’s best interest and state law.
- Consider values, location, existing relationship, and capacity.
- Name at least one alternate guardian.
Leaving assets outright to a minor usually requires a court-appointed custodian/guardian until the child reaches the age of majority. Many families use trusts to add structure.
- Specify who manages funds and how distributions happen.
- Consider ages or milestones for larger distributions.
Gifting strategies (and the annual exclusion myth)
Many people believe they’re “limited” to the annual gift amount. In reality, the annual amount is simply the threshold for gift-tax reporting in many cases—not a hard cap on giving.
| Concept | What it means |
|---|---|
| Annual exclusion | You can generally give up to a set amount per recipient per year without using your lifetime exemption. For 2026, the annual exclusion is $19,000 per donor per recipient (amounts can change over time). |
| Lifetime exemption | Gifts above the annual exclusion typically reduce your lifetime estate/gift exemption before any federal gift tax is due. For 2026, the basic exclusion amount is $15,000,000 per individual (subject to law changes and inflation adjustments). |
| Gift splitting (married couples) | In some cases, spouses can elect to treat gifts as made half by each spouse, effectively doubling the annual exclusion for a recipient. (Often requires a Form 709 filing.) |
- Regular annual gifts to children/grandchildren.
- Funding 529 education plans (including the “5-year election” in the right circumstances).
- Directly paying certain expenses (such as tuition or medical bills) can have special treatment—your attorney/CPA can confirm details.
- Don’t gift money you may need later for your own retirement or health care.
- Document large gifts carefully, especially when family dynamics are complex.
- Coordinate gifts with your overall investment and tax plan.
How IRAs fit into estate planning (taxes & protection)
Retirement accounts are often one of the largest assets families leave behind—and they follow a different set of rules than a house or brokerage account. The key drivers are beneficiary designations and income tax rules for the person who inherits the account.
Beneficiary forms usually control
For IRAs and 401(k)s, the beneficiary form often overrides what the will says. Keep it updated.
IRAs are often taxable to the heir
Traditional retirement dollars are generally taxed as ordinary income when distributed to beneficiaries.
Trusts can add control (with care)
In some cases, naming a trust as beneficiary can provide structure, but it must be drafted correctly to avoid unintended tax outcomes.
- Reduce the chance of beneficiary mistakes (old spouse, missing contingent, outdated plan).
- Coordinate inherited IRA timing with the beneficiary’s tax bracket.
- Consider Roth conversions in certain years to shift future taxes (planning topic, not one-size-fits-all).
- For many families, the first step is naming the right primary and contingent beneficiaries.
- If control/protection is needed (young heirs, remarriage risk, spendthrift concerns), trusts may help—done correctly.
- Coordinate with your attorney so the trust language matches retirement account rules.
How often should you review your documents?
Estate plans are not “set it and forget it.” A light annual review is usually enough for many families, with deeper updates when life changes.
| Review trigger | What to check |
|---|---|
| Every year | Beneficiaries, account titles, key contacts (executor/trustee/agents), where documents are stored. |
| Major life change | Marriage/divorce, birth/adoption, death in the family, relocation, business changes, major asset changes. |
| Health change | Confirm powers of attorney, health care directives, and who can access information when needed. |
| Law/tax changes | Estate/gift exemption levels, retirement account distribution rules, and state-level probate or inheritance changes. |
FAQs (one opens at a time)
These are common questions we hear from families planning for wealth transfer.
Want help organizing the financial side of your estate plan?
Fairvoy can help you organize account ownership, review beneficiary designations, coordinate with your attorney and CPA, and make sure your plan is workable in the real world—not just on paper.