If You Have Kids, Assets, or a Business—You Need an Estate Plan
Most high-income professionals delay estate planning – not because they don’t care, but because they think it’s too early, too complex, or only for the ultra-wealthy.
But here’s the truth:
If you have children.
If you own a home or investments.
If you’ve built a business, or even just started one.
You already have an estate.
The only question is whether you’ve designed what happens to it – or left it up to the courts.
At Truly Aligned, we work with high-income earners who are building serious wealth and juggling real responsibility. What they often don’t realize is that estate planning isn’t just about death – it’s about control, protection, and legacy while you’re alive.
Let’s break down what estate planning really is, why it matters (especially for you), and how to build a plan that reflects your values – not just your assets.
The Misconception: Estate Planning Is for Billionaires with Private Jets
You don’t need a $50M portfolio to need an estate plan.
You just need something worth protecting – your family, your wishes, your wealth.
Yet many professionals think:
- “I’m too young.”
- “It’s just me and my spouse so we’ll figure it out later.”
- “My assets are simple, and I already have beneficiaries listed.”
But here’s what that overlooks:
- Who will raise your kids if something happens to you tomorrow?
- How will your business run if you’re incapacitated for six months?
- Will your partner have access to your accounts, or face legal red tape while grieving?
- Will the IRS or probate court get more than your family?
Without an estate plan, your state decides who inherits what, how your assets are handled, and who gets to make medical or financial decisions if you can’t. And the default system often works against the people you love.
Estate planning isn’t a luxury – it’s a responsibility. And for high-income professionals, it’s a strategic opportunity to transfer wealth intentionally, reduce taxes, and ensure your life’s work lives on.
The Essentials: What Every High Earner Should Include in Their Estate Plan
An effective estate plan goes far beyond just having a will. Here’s what we recommend building into your strategy:
1. Revocable Living Trust – Think of this as a legal container that holds your assets while you’re alive – and passes them to your beneficiaries after death without going through probate.
- Avoids court delays and fees
- Offers privacy (unlike wills, which are public)
- Allows you to manage your estate during incapacity
2. Will (Pour-Over Will) – Even with a trust, a will is still necessary to:
- Name guardians for minor children
- Ensure any assets not titled in your trust transfer properly (“pour over” into your trust)
3. Durable Power of Attorney – Designates someone to handle your financial affairs if you’re unable to. This becomes critical if you’re ever injured, sick, or temporarily incapacitated.
4. Advance Healthcare Directive & Medical POA – Outlines your preferences for medical care and names someone to make decisions on your behalf.
5. Asset Titling & Beneficiary Designations – Your estate plan is only effective if your assets are titled correctly. Review:
- Bank accounts
- Brokerage accounts
- Life insurance
- Retirement plans
Misaligned beneficiaries are one of the most common (and expensive) estate planning errors we see.
Trust vs. Will: Which Do You Really Need?
|
Feature |
Will Only |
Will + Trust |
|
Goes Through Probate |
✓ |
X |
|
Public Record |
✓ |
X |
|
Provides for Incapacity |
X |
✓ |
|
Fast Asset Distribution |
X |
✓ |
|
Control Over Timing of Inheritance |
X |
✓ |
|
Complexity |
Low |
Medium |
|
Best For |
Basic asset transfer |
High-income earners, business owners, real estate investors |
If your income is high, your assets are growing, and you want to avoid probate or control how/when beneficiaries receive assets (e.g., for kids or blended families), a trust-based plan is usually the better fit.
Additional Strategies for High-Income Earners
For those who want to optimize tax savings, protect assets, or create multigenerational wealth, here are a few additional tools to consider:
- · Irrevocable Trusts: Can remove assets from your taxable estate and offer asset protection. Great for gifting strategies, life insurance planning, or legacy giving.
- · Buy-Sell Agreements for Business Owners: Clarifies what happens to your ownership interest in a business if you die or become incapacitated. Often funded with life insurance.
- · Charitable Trusts or Donor-Advised Funds: Reduce your estate and income tax liability while supporting causes you care about.
- · Family Limited Partnerships (FLPs): Allow you to transfer business or investment interests to family members at a discounted value – great for large estates and succession planning.
Each of these strategies has trade-offs, but they become especially relevant as your wealth and complexity grow.
FAQs
What happens if I die without a will or trust?
Your assets go through probate, and the state decides who inherits what based on intestacy laws. This process can be costly, public, and may not reflect your wishes.
Is a will enough, or do I need a trust?
A will is better than nothing, but for high earners with kids, property, or a business, a revocable trust offers more control, privacy, and efficiency.
What’s the difference between revocable and irrevocable trusts?
Revocable trusts can be changed and are primarily for probate avoidance and control. Irrevocable trusts are permanent and offer tax benefits and asset protection.
When should I update my estate plan?
Update after major life events: marriage, divorce, having kids, acquiring significant assets, or moving to a new state. Review every 3–5 years at minimum.
How does estate planning reduce taxes?
Proper structuring can minimize estate tax, income tax on inherited IRAs, and capital gains for your heirs. Strategic gifting and trust planning also help.
Final Thoughts: Your Wealth Is Only as Protected as Your Plan
Estate planning isn’t about being wealthy enough. It’s about being responsible enough to protect your loved ones, clarify your wishes, and pass on what you’ve built with intention.
At Truly Aligned, we believe the best estate plans do more than avoid taxes and court. They reflect your values, preserve your voice, and build a legacy that lasts.
You’ve worked hard to grow your wealth. Now make sure it supports the people and causes you care about on your terms.
LPL Financial representatives offer access to Trust Services through The Private Trust Company N.A. an affiliate of LPL Financial.
This information is not intended to be a substitute for specific individualized tax or legal advice. We suggest that you discuss your specific situation with a qualified tax or legal advisor.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.
Securities offered through LPL Financial, Member FINRA/SIPC. Investment advice offered through The Wealth Consulting group, a registered investment advisor. The Wealth Consulting group, WCG Wealth Advisors and Truly Aligned, INC are separate entities from LPL Financial.