top of page
Search

10 Ways to Simplify Your Estate and Ease the Burden on Your Heirs

  • Writer: Eiger
    Eiger
  • Feb 28
  • 10 min read

One of the greatest gifts you can offer your loved ones is a well-structured estate plan that clearly outlines your wishes. Discussing estate details with your team of professionals is another way to help manage your legacy and final wishes.

A file box with one tab reading "Estate Strategy"

As financial professionals, we often act as the “quarterback” of our client’s estate teams, working with their attorneys, accountants, and others. We coordinate activities and help get everyone on the same page.


With that in mind, we’ve compiled a list of some best practices to consider as you organize your estate. Here are 10 steps clients might consider as part of their strategies.  



1. Create a Centralized Location for Documents


A folder with important information for heirs, such as account names, numbers, passwords, and locations, as well as the names and contact information for attorneys, accountants, and financial professionals, can help with an estate. Most financial transactions today are online, eliminating once-helpful paper trails.


Compiling estate-related documents—health directives, power of attorney designations, and insurance policies, for example—into one accessible place can help your loved ones during an emotional and stressful time.


While online tools like digital vaults can be helpful, a well-marked traditional folder might help make things easier on heirs. Place this in a fireproof safe, and remember to tell your heirs where to find it so it doesn’t become a scavenger hunt at a crucial time.  


We maintain a digital copy of the estate planning documents our clients share with us, ensuring quick and easy access when needed. This can be invaluable in urgent situations. For example, if a client’s spouse is hospitalized and unresponsive, medical staff may be unable to share information due to privacy laws. In such cases, the client can simply call us, and we can promptly provide the hospital with the necessary documents—saving clients the stress of searching for their healthcare power of attorney in a critical moment.



2. Update Beneficiary Designations


Not reviewing your beneficiaries on retirement accounts and other key contracts and policies can result in unintended consequences.


Typically, a beneficiary designation overrides any instructions detailed in a will. For example, you may leave everything to your spouse in your will, but if your children are named beneficiaries on your retirement account at your passing, the retirement account designation can supersede anything written in your will. As a result, the money in that account could be transferred to your children instead of your spouse, regardless of what your will stipulates. 


Beneficiaries listed on an account opened long ago may not reflect your current circumstances and may no longer match your estate goals. This can be true in the case of divorce, the birth of a child, or the death of a beneficiary.



3. Make Sure Accounts Are Consolidated and Properly Titled 


Having multiple accounts held at various financial institutions can complicate your estate strategy. Taking the time now to consolidate your financial accounts can help manage confusion and streamline asset distribution for your heirs. Maintaining many scattered accounts can create delays or can be overlooked by your loved ones. While going through the exercise of consolidating accounts, you may want to take the time to review how the assets are titled.


Titling is a legal term that identifies how and who owns your assets. For example, do you own an asset solely or jointly with someone else? In an estate strategy, the titling or ownership structure may impact how your assets are distributed, and whether or not they need to go through probate. 


Real estate is another asset where titling is critical. If, for example, you own a home jointly with someone, the titling of the property will determine how the property is disposed of after you are gone. The same applies to other hard assets, such as vehicles, jewelry, or collectibles. So, getting titles in order can be a key step in your estate strategy.


While consolidating accounts is often beneficial, there are valid reasons to maintain multiple accounts. These may include diversifying strategies, working with different managers, and tracking performance more effectively.



4. Consider a Transfer on Death (TOD) Strategy


One strategy for pursuing a smoother transfer of assets to heirs upon your passing is setting up a transfer-on-death (TOD) order for your financial accounts. A TOD is an arrangement that allows your assets held within a brokerage or bank account to pass directly to your named beneficiaries upon your death, bypassing potentially time-consuming, costly, and contentious probate. A TOD account is designed for a quicker and more efficient transfer of assets to your loved ones. 


TOD designations are primarily for investment accounts, but other assets can also have a TOD designation. For example, real estate can have a designation via a TOD deed, and vehicles can have a TOD designation through a TOD title. Banks usually offer a payable-on-death form to transfer money from a bank account. Your beneficiaries have no access to or control over the account during your lifetime. It’s important to note that the rules and regulations for TOD accounts may vary by state. 



5. Use Clear Language in Your Will


Wills are considered one of the primary building blocks of an estate strategy. A will defines your wishes after you pass. It includes naming your executor for your estate and outlining what you’d like to happen to minors or anyone else requiring guardianship (such as someone with special needs). A will also describes how you want your property and other assets distributed.


A will should be written clearly to fulfill its intended purpose, and ambiguous language and vague instructions should be avoided. This can lead to family disputes and hard feelings—the exact outcome you may have wanted to avoid.


We caution clients not to assume that their heirs will figure out how to divide assets and personal property on their own. Some families even hire professional mediators to settle disputes over sentimental items. To prevent confusion and potential conflict, it's best to clearly document who should receive specific items and keep this list with your estate planning documents.



6. Express Final Wishes and Prepay Expenses


Having a discussion with your loved ones about your wishes for your funeral can be an enormous help when the inevitable happens. How to handle your funeral is most likely the first major decision your family has to make after you pass. And it’s not just one decision; it’s a series of small ones that can be overwhelming at a time of grief. Although the whole topic may sound a bit morbid, you can help relieve your family from an emotional burden.


Do you want a funeral? Will there be a wake or viewing before? What about flowers, music, celebrants, readings, eulogists, and repast? By expressing your wishes early on and putting them in writing, you can help your family during a difficult time and hopefully prevent disagreements.


Prepaying for your funeral is also one way to help ease the burden on your family. According to the National Funeral Directors Association, the national median cost of a funeral with a viewing and burial was $8,300—and that’s not factoring all potential expenses, such as hosting a gathering at a local restaurant, for example.


You should decide if you want to work with a funeral home that offers prepaid funeral plans, buy funeral insurance, or simply designate a separate pool of money that your family can use someday to give you a proper send-off. Working directly with a funeral home is straightforward: you’ll discuss the prepayment plan with the staff and make decisions, such as choosing your casket.



7. Periodically Review and Update Your Estate Strategy


Creating an estate strategy is essential—but it isn’t enough. Your overall strategy should be revisited occasionally, and your documents may need to be updated periodically, especially as life circumstances and your wishes change.


Here are some life events that may prompt you to consider changes to your estate strategy:


  • Birth of a child

  • Death of a primary/secondary beneficiary

  • Death of your minor child’s guardian

  • Marriage or divorce

  • Purchase of a new property

  • Starting a new business

  • Death of your estate executor


You may want to use these as “trigger events” to remind you to review your strategy. Even if there are no changes to your situation, you may want to meet periodically with your estate team to discuss whether your estate strategy reflects current best practices in estate management and tax laws.



8. Consider Establishing a Trust


Depending on your circumstances, a trust can play a valuable role in your estate plan. But setting up a trust involves a complex set of tax rules and regulations. Engaging a competent estate attorney who understands these intricacies is critical to ensure a well-structured trust that aligns with your goals.  


A trust is a fiduciary arrangement that allows a third party, or trustee, to hold assets for beneficiaries on behalf of the grantor. Typically, trusts bypass probate court, allowing your assets to transfer more quickly than if handled using a will. 


Trusts can be simple or complex, based on your needs, and they can be arranged to execute almost anything you wish. Trusts may be right for your strategy if:


  • You own a home

  • You have multiple heirs

  • You’re passing assets to your grandchildren

  • You want to add conditions to an inheritance

  • You want part of your wealth to go to charity

  • You have a large estate with various considerations

  • You need to provide for family members with disabilities without jeopardizing their benefits


Common types of trusts include the following categories: 


  • Living trusts: Created during the grantor’s lifetime and can be either revocable or irrevocable

    • Revocable trusts: A type of living trust that allows the grantor to modify or revoke it during their lifetime.

    • Irrevocable trusts: Can’t be changed or revoked by the grantor once established

  • Testamentary trusts: Created through a will, activated after the death of the grantor, and irrevocable

  • Sub-trusts: A living trust can include provisions to create new trusts upon the grantor’s death. Sub-trust can be revocable or irrevocable.



9. Help Manage Family Conflicts


One goal of your estate strategy may be conflict avoidance (in addition to creating and safeguarding your legacy). You may believe everything will be fine after you are gone, but we have seen families torn apart.


As you work through the estate process, you may want to hold a family meeting to discuss your thinking, set expectations, and set guidelines for how to resolve misunderstandings or disputes later.


We have seen clients create conflict by choosing one child over another to serve as the executor, trustee, or both. Sometimes, this may be appropriate. However, naming a relative or friend can help avoid potential sibling rivalry issues. In some instances, hiring a trust company or a private professional fiduciary might be a choice to consider. These are vetted and licensed individuals who fulfill the role of trustees or executors.


Conflict is almost inevitable if you are preparing to divide assets unevenly. If you have specific reasons for doing this, you should consider drafting a letter that explains your thought process, which might help resolve any future problems and hard feelings.


10. Manage Taxes


A thoughtful estate tax strategy can be one of the most impactful gifts to leave your heirs.


There are several ways to manage estate, gift, and income taxes for heirs. While this article provides some high-level talking points, it’s not a replacement for real-life guidance. We can work with your tax team as your estate strategy takes shape.


Here are concepts to consider when managing an estate:


  • Using Estate Tax Exemptions 


One of the most straightforward strategies for managing estate taxes is to take full advantage of tax exemptions.


The federal estate tax exemption amount in 2025 per individual is $13.99 million. Therefore, if the estate is worth less than $13.99 million in total, it won’t be liable for federal estate tax. This figure is adjusted every year, taking inflation into account. One important development to note is that in 2026, the federal estate tax exemption may revert to a lower amount if the provisions of the Tax Cut and Job Act are not extended. 


  • Strategic Gifting to Manage Estate Tax Liabilities 


Gifting can play a role in an estate strategy. That’s because giving large gifts over a lifetime might reduce the overall value of an individual’s estate—and therefore any taxes owed—after their death. There’s a limit to how much you can give an individual per year before owing tax. In 2025, this is $19,000 per person. A couple can gift $19,000 each to the same person. So the parents of two children, could gift $28,000 to each of their children.


  • Using Trusts 


A revocable living trust (a trust that remains under your control during your lifetime) is designed to help the estate avoid probate costs but won’t help with estate taxes. An irrevocable trust, on the other hand, can remove assets from your estate to bring down its overall taxable value.


  • Leveraging Charitable Contributions 


Charitable contributions allow you to contribute to the causes you care about.  


  • Using Life Insurance in an Estate Strategy 


Life insurance can play a role in an estate strategy. Beneficiaries receive the benefit directly without having to go through probate, giving them a tax-free lump sum that they can use to pay off any estate taxes. However, make sure the policy is structured correctly, such as through an irrevocable life insurance trust (ILIT). If the deceased owned the policy, the proceeds may be included in their estate for estate tax purposes.


Several factors affect the cost and availability of life insurance, including age, health, and the type and amount of insurance purchased. Life insurance policies have expenses, including mortality and other charges. If a policy is surrendered prematurely, the policyholder may also pay surrender charges and face income tax implications. You should consider determining whether you are insurable before implementing a strategy involving life insurance. Any guarantees associated with a policy are dependent on the ability of the issuing insurance company to continue making claim payments.  


  • The Impact of Portability on Married Couples 


Portability allows married couples to put their estate and gift tax exemptions together. Thus, when one partner dies, the surviving spouse can pick up any unused estate tax exemptions and add them to their own.


Now is the Time to Start Simplifying Your Estate for Your Heirs


Taking the time to create a well-structured estate plan now can help ease the burden on your loved ones in the future. By planning ahead, you ensure your family is prepared to handle important matters with clarity and confidence. Together, we can develop a comprehensive estate strategy tailored to your needs and goals.

 

Sources:


The information contained on this site may not reflect current developments; does not constitute investment, tax, or legal advice; and should not be relied upon for such purposes. There is no guarantee that any forecasts made will come to pass. We make no representation about the accuracy of the information or its appropriateness for any given situation. This information is not an offering. Past performance does not guarantee future results.

 
 
 

Comentarios

bottom of page