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A Quick Guide to Estate Planning for Those With High Net Worth

Even if you never thought of yourself as especially wealthy, there may be a fair chance that you fall into the category of "high net worth individuals" – those who have liquid assets of $1 million or more.¹ For many individuals who hope to leave a legacy for their loved ones, estate planning may take on new importance. Here are two estate planning tips every high-net-worth individual should consider.

Create a Will and Keep it Current

In America, 68% of adults do not have a will. This group includes those with no net worth and those with substantial assets.² Someone with few assets who dies intestate (without a will) creates a hassle for their loved ones who must go through the legal process of court probate. However, someone with significant assets who dies without a will could be setting up their heirs for a long and expensive legal battle.

Without a will, you have no control over how your estate is managed and distributed. Instead, assets will flow to your heirs based on your state's laws of intestate succession. Even a simple will may help you execute your wishes and help your loved ones after your death.

It is vital to review and update your will periodically. For example, if it refers only to children, you may want to update it after grandchildren enter the picture. And if you marry, divorce, or remarry, you likely want to amend the beneficiaries of your will as well.

Avoid Probate with a Trust

Many high-net-worth individuals hold their assets in a trust for several reasons:

  • It may help manage taxes while still allowing for control of the assets.
  • It bypasses probate upon the settlor's death.
  • It may allow the trust settlor to preserve assets for the heirs by shielding them from being counted in means-tested government programs such as Medicaid.

Bypassing probate is at the top of the list for those who desire privacy. Probate proceedings are matters of public record. In states where court records are available online, just about anyone may look up the details of an estate. Those with significant assets are unlikely to want their neighbors to know exactly how much was distributed and to whom. Trust information is private. Any funds transferred via a trust may remain confidential if the parties desire privacy.

Another benefit of a trust is it helps those who want to place conditions on their loved one's use of their funds. For example, suppose you do not want your 18-year-old child to suddenly become super wealthy upon your untimely death due to concerns about how they might spend the money. In that case, you might require the trustee to provide them with income from the trust and limit other withdrawals. Other types of trusts, like spendthrift trusts, are specifically designed to help curb overspending and safeguard the principal asset to preserve its value.


Important Disclosures
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.
This information is not intended to be a substitute for individualized legal advice. Please consult your legal advisor regarding your specific situation.
LPL Financial Representatives offer access to Trust Services through The Private Trust Company N.A., an affiliate of LPL Financial.
All information is believed to be from reliable sources; however LPL Financial makes no representation as to its completeness or accuracy.
This article was prepared by WriterAccess.
LPL Tracking #1-05313105

1. High-Net-Worth Individual (HNWI), Investopedia
2. 68% of Americans Do Not Have a Will, The Conversation

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The financial consultants at Travis Financial Services are registered representatives with, and securities and advisory services are offered through LPL Financial (LPL), a registered investment advisor and broker-dealer (member FINRA / SIPC). Insurance products are offered through LPL or its licensed affiliates. Travis Credit Union and Travis Financial Services are not registered as a broker-dealer or investment advisor. Registered representatives of LPL offer products and services using Travis Financial Services, and may also be employees of Travis Credit Union. These products and services are being offered through LPL or its affiliates, which are separate entities from, and not affiliates of, Travis Credit Union or Travis Financial Services. Securities and insurance offered through LPL or its affiliates are:

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