The definitive resource on estate planning

Start with a topic

Each topic hub gathers its guides, questions, terms and checklist in one place. Begin with the subject closest to your situation and follow the links outward.

• Business successionBusiness succession: buy-sell agreements, valuation of closely held interests, family and employee transfers, and the estate tax rules on each route.
• Charitable planningCharitable planning: bequests, donor-advised funds, private foundations, charitable remainder trusts and gifts of business and investment assets.
• Estate planning across bordersExplore estate planning across borders, noncitizen spouse gifts, QDOTs, domicile, U.S. property and foreign inheritances with practical guides for families.
• Digital assets and propertyDigital assets: fiduciary access to online accounts, cryptocurrency custody and succession, digital inventories and handling during administration.
• Disputes and contestsWill and trust disputes: capacity, undue influence, no-contest clauses, standing, filing deadlines, claims against trustees and settlement.
• Estate administrationEstate administration: executor appointment, inventory and valuation, creditor claims, tax returns, liquidity and final distribution.
• Federal estate, gift and GST taxFederal transfer tax: how the estate, gift and generation-skipping taxes work together, the annual exclusion, the unified exclusion and portability.
• Fiduciaries and governanceFiduciary governance: trustee duties of loyalty and prudence, co-trustees, directed trusts, delegation, conflicts and records owed to beneficiaries.
• Incapacity and health directivesIncapacity planning: financial powers of attorney, successor trustees, health care directives and proxies, guardianship and conservatorship.
• Income tax, basis and trust taxationIncome tax and basis: carryover basis on gifts, basis adjustment at death, grantor and nongrantor trust taxation and net investment income tax.
• Insurance and liquidityEstate liquidity: how estates heavy in business or real estate raise cash, policy ownership and estate inclusion, irrevocable life insurance trusts.
• Private investments and real estateExplore private investments and real estate planning, valuation, special-use elections, inherited property, ownership questions and records for adviser review.
• Retirement accounts and beneficiariesInherited retirement accounts: how beneficiary designations control who receives an account and how post-death distribution rules set the payout.
• Special needs and elder lawSpecial needs and elder law: third-party and first-party special needs trusts, ABLE accounts, Medicaid long-term care rules and financial exploitation.
• State estate and inheritance taxExplore state estate and inheritance taxes, multistate property, lifetime gifts, spouse elections and trust income, with state examples and planning guides.
• The planning process and family dynamicsThe planning process: from inventory to signed documents, plus family governance, communicating a plan and preparing the next generation.
• TrustsTrust design and funding: revocable, irrevocable, grantor and dynasty trusts, distribution standards, funding and modification or decanting.
• Wills and probateWills and probate: what a will controls and what passes outside it, execution formalities, the probate process, spousal rights and intestacy.

Run the numbers

Calculators for federal estate tax exposure, estate liquidity, buy-sell funding and inherited retirement withdrawals. Each shows its arithmetic and works only from the figures you enter.

• Federal estate tax exposure estimatorFederal estate tax estimator: applies the top rate to the taxable estate above the exclusion, after deductions and adjusted taxable gifts.
• Estate liquidity gap calculatorEstate liquidity calculator: compares the cash an estate must pay, including taxes, debts and costs, with liquid assets on hand to show any shortfall.
• Buy-sell funding gap calculatorBuy-sell funding calculator: compares the buyout price with insurance and cash set aside, then shows any unfunded balance and an installment payment.
• Inherited retirement account ten-year scheduleTen-year rule schedule: illustrates level withdrawals that empty an inherited account within ten years. It does not compute required annual distributions.

Infographics

• The estate settlement sequenceFollow the seven stages of settling an estate, from locating documents to closing the estate, in a flow chart with a matching data table below the image.
• How the federal estate tax is calculatedFollow the federal estate tax calculation through gross estate, allowable deductions, adjusted taxable gifts, tentative tax, recomputed gift tax and credits.
• What passes by will, by title or by designationSee the four ways property passes at death, under a will, by title, by beneficiary designation and through a trust, in a chart and a matching data table.

By state

State law governs wills, probate, trust administration, state death taxes and incapacity documents. Each state page covers the rule areas listed on it.

Blue tiles open a state page. See all covered states.

How to start

Start here sorts the site by situation: owning an operating business, holding real estate or private funds, planning for incapacity or settling an estate.

Frequently asked questions

What happens if I die without an estate plan?

State intestacy law determines who receives your probate property when you die without a will. Surviving relatives affect the shares. In Alaska, for example, the surviving spouse's share depends on which other relatives survive you, with the statute specifying dollar amounts and a fraction of the balance. Washington recognizes survivorship interests and IRAs as examples of nonprobate assets transferred under arrangements outside a will.

Read more: Intestacy, Do stepchildren inherit without a will?, What a will controls

How often should I update my estate plan?

Review your plan annually and after major life events such as marriage, divorce, a move, or a significant change in net worth. Your ownership records matter too. A mismatch between beneficiary forms and estate documents can disrupt the plan's operation, so a review needs to include the records that direct property transfers.

Read more: What changes can trigger an estate plan review?, How will changes and revocation work

How do I choose an estate planning attorney or advisor?

Choose an attorney or advisor whose engagement covers the planning work your circumstances require. Representation terms belong in writing. For a family business succession engagement, you need to know whether counsel represents individual family members or the business, because those interests can conflict. International planning also calls for qualified advisors in the countries involved.

Read more: Estate planning discussion checklist for business and investment owners, What does it mean when one professional represents both spouses?, The planning process and family dynamics

What are the most common estate planning mistakes?

Leaving assets outside their intended trust can disrupt your plan. Conflicting beneficiary forms create another gap. A revocable trust's trustee has authority over property actually transferred to the trust, with ownership generally changed to the trustee's name under applicable state law.

Read more: Why can an estate plan fail after the documents are signed?, How trusts receive property and business interests, What changes can trigger an estate plan review?

What taxes apply when someone dies with a large estate?

Federal estate tax and state death taxes can apply to a large estate. GST means generation-skipping transfer tax. GST can apply to a bequest to a grandchild, an example of a skip person, after allocated GST exemption is taken into account. Your estate also becomes a separate taxable entity at death, with income tax arising during administration.

Read more: How the federal estate and gift tax system works, Estate tax versus inheritance tax, How income taxes work during estate administration

How long does it take to set up an estate plan?

Setup time depends on the work. You need time to settle the planning strategy and complete the intended asset arrangements, including changes to ownership titles and beneficiary forms. Family disagreements can hold up decisions. In business succession planning, coordination can continue as circumstances change and the ownership plan needs further work.

Read more: The planning process and family dynamics, Why can an estate plan fail after the documents are signed?, Trust funding records and questions checklist

What are the alternatives to a will?

Revocable living trusts and survivorship ownership offer ways for your property to pass outside a will. Washington's statute also lists IRAs and transfer-on-death deeds as examples of nonprobate assets, with transfers governed by the written ownership or beneficiary arrangement for each asset.

Read more: How revocable living trusts work and what they do not do, Nonprobate asset, What a will controls

Do I need a trust, or is a will enough?

Your choice depends on how your property is owned and which assets you want a trustee to manage. A will and trust can work together. Alaska law, for example, permits a will to leave property to the trustee of a trust identified in the will, including a trust created during life. A revocable trust can avoid probate for funded property.

Read more: How revocable living trusts work and what they do not do, Does having a will mean the estate goes through probate?, Does a pour-over will pass assets through probate?

What should I ask before hiring an estate planner?

Ask who the client is and exactly what work your engagement covers. Trust funding needs an assigned person. If you own a family business, the written engagement should identify whom counsel represents; also clarify who will handle asset titles and beneficiary forms. A limited engagement to prepare a durable power of attorney can leave broader estate planning outside the lawyer's responsibilities.

Read more: Estate planning discussion checklist for business and investment owners, What does it mean when one professional represents both spouses?, Why can an estate plan fail after the documents are signed?

Where can I find vetted estate planning resources?

The supplied material doesn't establish independent vetting of estate planning resources. EstatePlanner.com has Learn and Questions sections. You can use those links for research and bring a personal balance sheet and existing estate documents to a planning discussion, as the consultation organizer in the source describes.

Read more: Estate planning guides by topic, Estate planning questions answered, Estate planning checklists, Estate planning calculators and worksheets, Estate planning by state

Corrections

Every guide, question and state page lists its sources in a collapsed panel at the foot of the page. To report an error, text (808) 600-9260 or write to Richard@FamilyBusinesses.com. See the corrections page.