More money, more problems… unless you have a plan.

The Estate Planning By Wealth Information Hub

Estate planning isn’t just for the rich, but the richer you get, the more complicated it becomes. Whether you’re figuring out how to split a single savings account or navigating trusts, taxes, and multiple properties, your financial situation shapes what kind of plan you actually need.

Estate Planning By Wealth

Table of Contents

Key Things To Know

Estate planning is not just about age or stage of life. Your financial situation plays a big role in what kind of planning you need and when you need it. Whether you are living paycheck to paycheck or managing multiple properties and investments, there are steps you can take now to protect yourself and the people who matter most.

  • Start with the basics no matter your net worth: A will, healthcare proxy, and power of attorney are foundational documents that every adult should have.
  • Understand when assets create risk: As your financial life becomes more complex, the consequences of poor planning get bigger. A good estate plan helps reduce confusion, costs, and conflict.
  • Learn how beneficiary designations work: Life insurance, retirement accounts, and many bank accounts are not controlled by your will. They pass directly to whoever is named on the account.
  • Explore whether a trust is right for you: A trust can help you avoid probate, protect privacy, and give you more control over how assets are used after you are gone. You do not need to be wealthy to benefit from one.
  • Know how to plan for taxes: Higher net worth can mean higher exposure to estate taxes, capital gains, and income tax for your heirs. A good estate plan can help manage or reduce those burdens.
  • Think beyond money: Valuable items like real estate, heirlooms, and even digital accounts may carry emotional weight or legal complexity. Include them in your planning.
  • Keep your plan aligned with your financial life: The tools that worked when you had one bank account and no dependents may not serve you well once you own a home, a business, or investment accounts.

Tier 1: Getting Started (<$250,000)

Net Worth: Under $250,000

Who This Is For

Young adults, renters, early-career professionals, single individuals, or anyone with modest assets and no dependents yet.

Primary Goals

  • Protect decision-making authority if something happens
  • Avoid confusion for loved ones
  • Begin organizing personal and digital life

Essential Tools

  • Will
  • Financial and medical powers of attorney
  • Advance directive
  • Beneficiary check on accounts
  • Password and digital access log

Could a financial planner help at this stage?

Yes, especially for a one-time financial checkup or help creating a plan to reduce debt, save consistently, and start building wealth. Many people in this range use online tools or hourly advisors to get guidance without ongoing costs.

Key Steps To Take

Even with modest assets, a basic will ensures your wishes are followed and gives someone legal authority to manage your estate.

Without a healthcare proxy or power of attorney, no one can legally make decisions on your behalf if you become incapacitated.

Creating a single place to store account details, contacts, and logins makes life easier now and later.

Beneficiary designations on accounts like life insurance and retirement funds override your will, so keeping them current is critical.

  • Visit the Bank & Financial Accounts Hub
  • Explore the Payable on Death Beneficiaries Hub

Tier 2: Growing Wealth & Responsibility ($250,000 to $2 million)

Net Worth: $250,000 to $2 million

Who This Is For

Homeowners, dual-income households, parents of minor children, small business owners, or people entering their peak earning years.

Primary Goals

  • Protect dependents and property
  • Avoid probate if possible
  • Set up basic legacy planning
  • Reduce future financial burdens on loved ones

Essential Tools

  • Will with guardianship provisions
  • Revocable living trust
  • Term life insurance
  • Financial plan with beneficiary review
  • Personal items inventory
  • CLEAR Kit Deluxe or digital version
  • Business succession plan (if applicable)

When should you bring in a professional?

Now is a great time. A fee-based advisor can help you coordinate retirement savings, life insurance, and investments while avoiding common tax mistakes. This stage is all about optimizing, not just saving.

Key Steps To Take

A revocable trust gives you flexibility during your life and helps your estate bypass the delays and costs of probate.

If you have young children or dependents, naming a legal guardian and providing written care wishes gives you peace of mind.

Start an inventory of your personal items, heirlooms, and valuables to make decisions easier for others later.

As your responsibilities grow, so should your coverage. This includes life, health, and burial-related insurance.

Use organizational kits or checklists to keep track of everything in one place, from passwords to property details.

Tier 3: High Net Worth ($2 million to $12.9 million)

Net Worth: $2 million to $12.9 million

Who This Is For

Business owners, high-income professionals, multi-property families, or people nearing the federal estate tax threshold.

Primary Goals

  • Minimize taxes and delays
  • Plan for generational wealth transfer
  • Protect family privacy
  • Support charitable goals

Essential Tools

  • Revocable and irrevocable trusts
  • Tax-efficient gifting strategies
  • Life insurance trusts
  • Legacy letter or ethical will
  • Family governance structure
  • Planned giving vehicles
  • Long-term care protection
  • CLEAR Kit Concierge or facilitated planning

Is full-service financial planning worth it?

Absolutely. You’re likely managing multiple accounts, properties, or business assets. A comprehensive financial planner can coordinate your estate plan, taxes, investments, and charitable giving strategy.

Key Steps To Take

Gifting, charitable donations, and legacy planning can help reduce estate taxes and preserve more for your heirs.

Trusts can help you pass wealth securely and intentionally, especially when you want to guide how and when it is used.

Sharing what matters to you can be just as meaningful as financial gifts. Write a letter or record a message for future generations.

Real property and closely held businesses often require more specialized planning to transfer smoothly and tax-efficiently.

Even if you fall under the federal tax threshold, your state may have its own rules. Know what applies to you.

Tier 4: Ultra High Net Worth ($13+ Million)

Net Worth: $13,000,000+

Who This Is For

Individuals and families who need to manage complex assets, philanthropy, and succession over multiple generations.

Primary Goals

  • Reduce or eliminate estate tax exposure
  • Maintain control and clarity across trusts and entities
  • Balance privacy, control, and generosity
  • Formalize multi-generational structures and intent

Essential Tools

  • Dynasty trusts
  • Family offices or advisors
  • Foundation or donor-advised funds
  • GRATs, SLATs, or other advanced trusts
  • Private business succession planning
  • Philanthropic mission statement
  • Structured family meetings and facilitation

Do you need a financial team at this level?

Yes. You’re likely working with attorneys, CPAs, and investment advisors already. At this level, coordination matters more than ever. A dedicated financial planner helps make sure your wealth transfer, tax strategy, and charitable goals all work together.

Key Steps To Take

Tools like GRATs, SLATs, and dynasty trusts can help reduce taxes while keeping assets in the family across generations.

Establish donor-advised funds or private foundations to support causes you care about and create a family giving structure.

Clarify your values and hopes for how wealth is used. This can guide heirs and reduce confusion across generations.

Succession planning is essential for family-owned businesses and real estate portfolios to remain viable across generations.

Make sure your executor, attorney, accountant, and key advisors are known and reachable when the time comes.

Frequently Asked Questions

Estate planning is not only for the wealthy, but wealth does change what you need to think about.

The more you have, the more important it is to make smart decisions about how your assets are protected, transferred, and taxed. These questions can help clarify what to do based on your financial situation.

Yes. Estate planning is not just about wealth. It ensures your wishes are followed, and it saves time, money, and stress for the people you care about.

You should consider a trust if you have children, own property, want to avoid probate, or have specific instructions about how your assets should be used after you die. Trusts also help if you want to control when and how money is distributed.

Yes. A good plan can reduce or delay estate taxes and lower the taxes your heirs may owe. Strategies like charitable giving, gifting during your lifetime, and creating trusts can all help.

The federal estate tax exemption in 2025 is around 13 million dollars per person. If your total assets are near or above that amount, planning becomes essential. Some states have their own estate or inheritance taxes with much lower thresholds.

Every three to five years is a good rule of thumb. You should also review your plan any time there is a major financial or life change, like buying a home, starting a business, getting married, or receiving an inheritance.

Yes. Asset protection planning can help shield your property from lawsuits, creditors, or long-term care costs. This may involve setting up trusts, forming legal business structures, or re-titling assets.

Yes. A trust allows your estate to bypass the probate process, which is public. This can protect the privacy of your finances and your family.

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Disclaimer: The information provided on this website and by Buried in Work is for general informational purposes only and should not be considered legal advice. Please consult with a qualified attorney or subject matter expert for advice specific to your situation.