Category: The Wealth Counselor

During your discussions with other advisors or while reading industry publications, you have likely come across startling statistics about the number of Americans without an estate plan. 

The exact figures vary by survey and demographic, but the story they tell is consistent: Roughly two-thirds of Americans are unprepared to transfer their assets and care for their loved ones in a medical emergency. For example, a 2025 survey by Caring.com found that only 24 percent of Americans have a will.¹ A report by online service Trust & Will puts that number slightly higher, at 31 percent (with 11 percent having a trust),² while D.A. Davidson found that just one in three adults has any form of estate plan, including a healthcare power of attorney.³ 

Also consistent across these studies are people’s reasons for not having an estate plan. They range from believing that their efforts will not make a difference, to misconceptions about estate planning being for only the wealthy, to simple procrastination. Even more concerning, the overall trend is downward—fewer Americans are engaging in estate planning despite widespread acknowledgment of its importance.⁴

What is an advisor to think—and do—about this potentially calamitous oversight? It starts with understanding why Americans are not planning for their futures. 

Reason 1: They Think They Do Not Own Enough to Have an Estate Plan

In all three surveys noted above, the top reason people gave for not having an estate plan was some version of “I don’t have enough assets to leave to anyone.”

That misconception tends to stick because the word asset often brings to mind images of wealth—mansions, yachts, or sprawling investment portfolios. However, an asset is anything a person owns that has value to them or their loved ones. That definition may include things with financial value, such as a home, a retirement account, or a car. It can also include things that have only sentimental value, including a treasured family heirloom, a grandmother’s recipe collection, a beloved pet, or even the values and life lessons one wants to pass down. Regardless of your client’s financial situation, they likely have a legacy they want to leave behind. Ask them what that might be and how it might look. This conversation can touch on not only what they own but also how they see themselves and the story they want their life and legacy to tell.  

It is equally important for your clients to understand that estate planning is about far more than wealth transfer. It is also about what happens if a person becomes incapacitated, whether from illness, injury, or age-related decline. Everyone may face incapacity at some point, and without the right documents in place, decisions about your healthcare, finances, and personal care could end up in the hands of strangers or the courts. Incapacity planning is the second major pillar of estate planning, yet only one-third of Americans have a healthcare power of attorney, and even fewer (30 percent, according to D.A. Davidson) know what it is.⁵ Is your client one of them?

This information gap presents an opening for advisors. While some clients may benefit from deep conversations about wealth and legacy, many simply need clear education on what estate planning covers and why it matters for everyone.

Reason 2: They Think Beneficiary, Payable-on-Death, and Transfer-on-Death Designations Are Enough

Some clients think they have an estate plan when, in fact, all they have are beneficiary, payable-on-death (POD), or (transfer-on-death) TOD designations on some or all of their financial assets. Such designations are often outdated or poorly suited to their current needs and circumstances. 

For starters, beneficiary, POD, and TOD designations generally apply only to specific financial accounts, assets, or insurance policies. They do not cover property such as a vehicle or a house (unless your state recognizes TOD deeds). They also do not cover anything inside the home, such as household belongings, family heirlooms, or collectibles. Without a will or a trust, these assets may have to go through probate court to be distributed according to state intestacy law—which may not include the people your clients would have chosen. 

Another limitation is that these designations do not allow your client to control when the inheritance is received; it can only be distributed outright. Your client cannot stagger distributions based on ages, milestones, or a set number of years after death, or create any other personalized plan. Once the inheritance is in the beneficiary’s hands, your client will lose the ability to protect it from creditors or add guardrails for minor children or adult beneficiaries who may be inept at managing money.

Finally, beneficiary, TOD, and POD designations work as intended only if they are kept up to date. A form filled out years ago and not updated after a major life event, such as a divorce, a marriage, or the birth of a child, could mean that the people to whom your clients meant to leave their assets are unintentionally left out. 

Beneficiary, TOD, and POD designations can be valuable tools within a comprehensive, well-thought-out estate plan, but without broader planning and regular updates, they can leave major gaps. Ask your clients when they last updated their beneficiary designations, whether they named backups in case something happens to their initial choices, and if they are okay with outright distributions to their chosen beneficiaries, which offer no protections for them. 

Reason 3: They Have Told Their Loved Ones What Their Wishes Are

Clients may assume that they do not need an estate plan because they have had “the talk” with their loved ones about who gets what when they die. Since everyone knows their wishes, they may believe that no attorneys or courts need to be involved. They trust their family to act responsibly and do what was discussed. Everyone seems to agree. 

The problem is that verbal conversations your client has with their loved ones—no matter how much they promise to honor the client’s wishes—are not legally binding. Open communication and trust are important, but putting your client’s wishes into a legally valid estate plan is essential for true protection. Memories fade, stories conflict, and family harmony can break down overnight when money or property is at stake. What begins as a peaceful family agreement can quickly unravel into bitter probate court battles.

If your client has no legally valid estate plan, the court may need to get involved, and the outcome might look nothing like what the client wanted or what their family thought they agreed to. Verbal agreements may feel binding, but as far as estate planning goes, spoken promises are worth little more than a pinky swear.

Find Out What Motivates Your Client

A common thread running through these three points is that perception informs reality. A client may believe they do not have enough to pass on, assume that naming beneficiaries on all of their accounts will avoid probate, or think that verbally expressing their wishes is sufficient. However, reality is much different. 

You do not have to be heavy-handed to get clients to think about their estate plan. A few well-placed questions—even something as simple and direct as “Do you have an estate plan?”; “Do you know what happens without one?”; or “What matters most to you?”—can start them thinking. 

How they define and express their legacy is their prerogative. Creating a plan so they can protect it is ours. When reflection leads to action, we can help you and your clients take the next steps.

1. Victoria Lurie, 2025 Wills and Estate Planning Study, Caring (Sept. 17, 2025), https://www.caring.com/resources/wills-survey. ↩︎
2. 2025 Estate Planning Report, Redefining Legacy, Trust and Will, https://trustandwill.com/documents/2025-estate-planning-report. ↩︎
3. Only One-Third of Americans Have an Estate Plan, D.A. Davidson Survey Finds, D.A. Davidson (Oct. 11, 2022), https://www.dadavidson.com/About-Us/News/ArticleID/5443/Only-One-Third-of-Americans-Have-an-Estate-Plan-D-A-Davidson-Survey-Finds. ↩︎
4. Victoria Lurie, 2025 Wills and Estate Planning Study, Caring (Sept. 17, 2025), https://www.caring.com/resources/wills-survey. ↩︎
5. Only One-Third of Americans Have an Estate Plan, D.A. Davidson Survey Finds, D.A. Davidson (Oct. 11, 2022), https://www.dadavidson.com/About-Us/News/ArticleID/5443/Only-One-Third-of-Americans-Have-an-Estate-Plan-D-A-Davidson-Survey-Finds. ↩︎

Who wants to live to be 100? That depends on who you ask. 

Whatever the answer, one thing is clear: The odds of reaching that milestone are rising, along with the length of retirement and the number of life changes that come with it.

Life expectancy gains in the US since the turn of the century are staggering, and they are straining retirement, medical, and support systems that were not designed for such longevity. The number of Americans who are 100 years old or older has nearly tripled over the past three decades and is expected to quadruple over the next 30 years.¹

Though an aging population is a public policy challenge, reaching age 100—and beyond—is also a personal milestone that more Americans than ever are celebrating. While few people plan to live 100 years, more of us will, and financial and estate plans need to keep pace with that new reality.

Age 100 (and Counting)

Georgia resident Naomi Whitehead became the oldest living American when she turned 114 in September 2024.²

Raised on a farm, Whitehead attributes her long life to hard work.³ Her story is also one of incredible change. She was born in 1910, when the average life expectancy for women was just under 52 years.⁴ Only one in eight homes had electricity. Women could not vote, and income tax did not exist. During her lifetime, Whitehead has witnessed two world wars, the Great Depression, the moon landing, airline travel, civil rights milestones, and the digital age. 

Now living in a senior care facility in Pennsylvania, she may have updated her estate plan a few times along the way, as she has outlived her husband and three sons.

And because of the trend toward longer life expectancies, the chances of her grandchildren reaching 100 are far higher than Whitehead’s. However, those added years are not always healthy years. Early gains in longevity came from decreased rates of infant mortality and improvements in public health; recent increases in life expectancy come from medical advancements that increase the odds of surviving later-life conditions. But today we spend more years managing chronic illnesses such as arthritis, diabetes, and dementia than ever before. We are living longer lives but not healthier ones.⁵ 

A person’s health directly impacts their wealth, and the link between health and wealth becomes increasingly important with age. A longer life means more years of expenses, more potential for incapacity, and greater pressure on retirement and estate plans. Clients—and their advisors—must plan for longevity risk: the financial, medical, and legal challenges of living longer.

Financial Planning for a Longer Life

Statistically, most of us will not live to be 100, let alone become a supercentenarian (a person who reaches the age of 110 or older) like Naomi Whitehead. However, most Americans are living longer. 

Many Americans are planning, or should be, for retirements as long as 30 or 40 years. How they will fund their living expenses and medical costs in retirement, and avoid outliving their savings, is an open question. 

The median retirement savings balance for 55- to 64-year-olds is $185,000.⁶ A typical 65-year-old couple can expect to pay more than $680,000 in lifetime medical costs.⁷ That figure represents only out-of-pocket costs, not expenses covered by Medicare. It also does not account for long-term care, which could cost upwards of $100,000 per year, according to an RBC Wealth Management survey.⁸ 

Only slightly more than half of respondents told RBC that they have factored the cost of healthcare into their wealth plans.⁹ Of those respondents, half say they are probably underestimating care costs.¹⁰ 

Estate Planning in the Age of Longevity

Like retirement savings, estate plans are often not built for the long (and getting longer) haul. And that is assuming that someone already has an estate plan. The number of Americans who do not have an estate plan is double the number of those who do.¹¹ Those who do have a plan often go years or decades without updating it. 

Even if an estate plan was updated at the brink of retirement, by the time someone reaches their 80s, 90s, or 100s, that plan could be woefully outdated. Beneficiaries and trustees may have died, family dynamics may have shifted entirely, and new generations—grandchildren, great-grandchildren, and even great-great-grandchildren—may have been born and now need to be considered.

Living longer also increases the odds that something will go wrong, medically, financially, or legally, including:

• Cognitive decline or incapacity
• Outdated or missing powers of attorney
• Obsolete fiduciaries (trustees, executors, agents)
• Conflicting or outdated beneficiary designations
• Misaligned or forgotten asset ownership
• Unintentional disinheritance
• Long-term care funding gaps
• Lack of end-of-life directives

Advisors should consider not only retirement savings and what happens during an aging client’s life but also what happens after their death. Will their plan support younger loved ones, protect vulnerable family members, or fuel multigenerational giving? The longer someone lives, the more likely their estate plan will need a full review instead of just a few minor revisions. 

Planning for the Century Mark (and Possibly Beyond)

Even if clients do not live to be 100, planning as though they might is a smart way to protect both their quality of life and the legacy they leave behind. Estate planning for longer-living Americans should address the following considerations: 

• Rising healthcare costs. Long-term care insurance or hybrid policies with long-term care riders can help offset the expense of home care, assisted living, or nursing facilities.
• Income longevity. Advisors should stress-test retirement plans for longer-than-expected life spans and anticipated inflation. Annuities, guaranteed income streams, later retirement, and conservative withdrawal strategies can all help clients avoid outliving their assets.
• Incapacity planning. Durable powers of attorney and healthcare proxies should be up to date and reflect trusted decision-makers who are still alive, willing, and able to act.
• Trust-based planning. Trusts can provide long-term asset management, protection, and flexible distributions while also ensuring seamless incapacity planning for clients who may live well into their 80s, 90s, or even 100s.
• Ongoing review. Estate plan reviews with an experienced attorney at regular intervals (typically every three to five years, but more often as your clients age) or when your clients experience major life changes (such as the death of a loved one, marriage, divorce, inheritance, or significant financial shifts) help ensure that the estate plan evolves with the client’s life, goals, and health realities.

National Centenarians Day is a reminder that a person’s age does not tell their full story. Longer lives demand deeper planning and more thoughtful strategies. Whether your clients are entering retirement or approaching the century mark, now is the time to revisit whether their financial and estate plans are built to go the distance.  

Let’s talk about how to build a plan that stands the test of time—no matter how long that time turns out to be.

1. Katherine Schaeffer, U.S. Centenarian Population Is Projected to Quadruple over the Next 30 Years, Pew Rsch. Ctr. (Jan. 9, 2024), https://www.pewresearch.org/short-reads/2024/01/09/us-centenarian-population-is-projected-to-quadruple-over-the-next-30-years. ↩︎
2. Renee Onque, 114-Year-Old Woman in Pennsylvania Is Now the Oldest-Living American: “I’ll Live As Long As the Lord Lets Me,” Makeit (Nov. 6, 2024), https://www.cnbc.com/2024/11/06/114-year-old-woman-in-pennsylvania-is-now-the-oldest-living-american.html. ↩︎
3. Id. ↩︎
4. Aaron O’Neill, Annual Life Expectancy at Birth in the United States, from 1850 to 2023, with Projections Until 2100, Statista (July 31, 2025), https://www.statista.com/statistics/1040079/life-expectancy-united-states-all-time. ↩︎
5. Douglas Broom, We’re Spending More Years in Poor Health Than at Any Point in History. How Can We Change This?, World Econ. F. (Apr. 5, 2022), https://www.weforum.org/stories/2022/04/longer-healthier-lives-everyone. ↩︎
6. Alana Benson, What Is the Average Retirement Savings by Age?, Nerdwallet (Aug. 19, 2025), https://www.nerdwallet.com/article/investing/the-average-retirement-savings-by-age-and-why-you-need-more. ↩︎
7. RBC Wealth Mgmt., Retirement Income Planning: Long-Term Care Considerations 1 (2025), https://docs.rbcwealthmanagement.com/us/4346-retirement-income-planning-long-term-care.pdf (citing Healthview Servs., 2021 Retirement Health Care Costs Data Report, https://hvsfinancial.com/wp-content/uploads/2020/12/2021-Retirement-HC-Costs-Report-op-final.pdf). ↩︎
8. Plan Ahead for Potential Long-Term Care Expenses, RBC Wealth Mgmt. (Oct. 2024), https://www.rbcwealthmanagement.com/en-us/insights/plan-ahead-for-potential-long-term-care-expenses. ↩︎
9. RBC Wealth Mgmt., Taking Control of Health Care in Retirement 5 (2023), https://www.rbcwealthmanagement.com/assets/wp-content/uploads/documents/insights/taking-control-of-health-care-in-retirement.pdf. ↩︎
10. Id. ↩︎
11. D.A. Davidson Survey Finds That Two-Thirds of Americans Do Not Have an Estate Plan, DADavidson, https://www.dadavidson.com/Perspectives-Insights/Perspectives-Insights-Article/ArticleID/1391/D-A-Davidson-Survey-Finds-That-Two-Thirds-of-Americans-Do-Not-Have-an-Estate-Plan (last visited Aug. 26, 2025). ↩︎

Happy National Stepfamily Day to those who celebrate it! Amid shifts in modern family structures and demographics, you likely have clients who are part of a stepfamily with something to celebrate on September 16. 

National Stepfamily Day is a celebration of second chances and overcoming the unique challenges of integrating different family members and adjusting to new relationships. Those challenges extend beyond trying to get along as “one big happy family” and into financial and legal areas, where planning for the future requires as much care and sensitivity as navigating the family relationships themselves. 

The Evolution of Stepfamilies

The “traditional” American family—two parents, first and only marriage for both, all children in common—is no longer the dominant household structure and has not been for decades.

With higher divorce rates, increased remarriage rates, and evolving social attitudes, today’s families are increasingly diverse. 

In 2025, an estimated 41 percent of first marriages will end in divorce.¹ As of 2021, over 2.4 million stepchildren lived in US households, according to the US Census Bureau.² 

However, even as the ranks of nontraditional families are expanding, the term stepfamily is falling out of favor. Some say that it carries a stigma and confers second-class status on stepparents and stepsiblings. 

More families embrace terms such as blended or bonus families to reflect their unique dynamics in a positive light and foster a sense of inclusion and connection. The law, however, has not evolved as quickly. 

How the Law Treats Stepchildren

In the real world, families may see no distinction between step- and blood relatives, but the law often does. For estate planners and financial advisors, understanding how courts view step relationships is critical because it may not match how clients feel about their blended families.

In most states, stepchildren do not automatically inherit from a stepparent under the default rules (intestacy laws) that decide what happens to someone’s accounts and property if they die without a valid will or trust. These laws typically direct the deceased person’s accounts and property to biological or legally adopted children and a surviving spouse, omitting stepchildren by default.

Formal legal adoption of a stepchild is typically the only exception. Without it, even decades of parenting a stepchild may carry no legal weight.

Blended families are also vulnerable to unintentional disinheritance. One common scenario occurs when a stepparent leaves assets outright to their surviving spouse, the stepchild’s biological parent. If that spouse later remarries, changes their estate plan, or simply spends down the inheritance, there is no guarantee that stepchildren, or even biological children, will receive what the client intended them to have.

Estate Planning Steps for Including (or Excluding) Blended Family Members

Steprelations can present some of the most personally sensitive and legally complicated estate planning conversations. Clients need to be clear about whether they want to include stepchildren in their plans, exclude them, or structure inheritances to balance the needs of their surviving spouse, biological children, and stepchildren.

Including Stepchildren

Clients may wish to treat stepchildren as equals to biological children in their estate plan for the following reasons: 

• They have developed deep bonds.
• The stepchildren have little or no other family support.
• The client values fairness or wants to avoid divisions and treat all children equally.

Strategies and Tools

If clients want to be certain that stepchildren are included in their legacy, they will need to use particular planning tools to make their wishes legally enforceable. When engaging in proactive planning, clients should remember the following:

• Specific naming and instructions. Use full legal names and clear instructions in wills and trusts. Terms such as my children will usually refer only to biological or adopted offspring. 
• Living trusts. A trust can be drafted to specifically name stepchildren as beneficiaries, ensuring that they receive the share your clients intend and bypassing default state laws that would otherwise exclude them. With a living trust, your clients can decide whether stepchildren receive the same shares biological children receive or different ones and set identical or tailored distribution terms for each.  
• Qualified terminable interest property (QTIP) trusts. Incorporating a QTIP trust into a living trust can be a strategic way to balance priorities: providing for a surviving spouse’s needs while ensuring that children and stepchildren ultimately receive their intended shares of the estate.
• Beneficiary coordination. Review and update beneficiary designations for retirement accounts, life insurance, and pay-on-death (POD) or transfer-on-death (TOD) accounts to keep distributions aligned with your clients’ goals or integrate a living trust they have created.
• Lifetime gifts with purpose. Making thoughtful gifts to stepchildren during life—whether for major milestones, educational goals, or other meaningful needs—not only supports them in the moment but also demonstrates clear intent and helps reduce the likelihood of misunderstandings or disputes after your clients are gone.

Excluding Stepchildren (or Managing Inheritance Indirectly)

Not every stepfamily is close, and an estate plan should not pretend otherwise. Clients may exclude stepchildren from their estate plan for the following reasons:

• There is emotional distance or family tension.
• The stepchildren are expected to inherit from their own biological parent or family.
• They want to preserve their accounts and property solely for their biological children.

Strategies and Tools

If clients want to exclude stepchildren from their legacy, they must make that intent clear and legally binding. Help clients consider the following when structuring their estate plan:

• Clear and affirmative language. If exclusion is the goal, say so explicitly in a will or a trust. Silence or a failure to directly address the issue can invite conflict.
• Living trusts. Use proactive estate planning tools such as a living trust to limit inheritance to only biological children and descendants while still caring for a surviving spouse. If the goal is to not completely disinherit a stepchild, the client could leave them a specific monetary gift or a smaller percentage of the overall estate.
• Guard against the “second spouse” problem. Avoid leaving everything outright to a spouse if the client’s true intent is to benefit their own biological children, since the surviving spouse will have no legal obligation to pass along any remaining inheritance to them.
• Keep up with change. Regularly update documents and beneficiary designations after major life events such as remarriage, estrangement, or reconciliation to take into account new family dynamics and changing wishes.
• Prenuptial and postnuptial agreements. In subsequent marriages, such agreements can specify how assets will be divided at death, protecting children from prior relationships and preventing unintended disinheritances.

The Next Step: Talk to an Estate Planning Attorney

The varying relationships and expectations within blended families can heighten the potential for disputes over inheritance. Perceived favoritism or unequal treatment of biological children and stepchildren can breed resentment and infighting. Navigating these dynamics requires a careful touch in both the home and an estate plan. 

Keeping communication lines open and documents up to date can help reduce the potential for conflicts—and unintended outcomes—in an estate plan. However, as their advisor, you may be dealing with the added challenge of interpreting what a client says about their blended family and how they truly feel. 

You might be able to spot planning opportunities when clients say things such as “They are not really my kids,” “My spouse will take care of them,” or “We want to treat everyone equally,” and their current documents do not reflect their stated intent. 

For help aligning a client’s estate plan with their legacy goals and their unique definition of family, schedule a time to talk with us.

1. Robert McAllister, Divorce Rates in US 2025 – Current Trends and Analysis, NCH Stats (Dec. 11, 2024), https://nchstats.com/divorce-rates-in-us. ↩︎
2. National Stepfamily Day: September 16, 2023, U.S. Census Bureau (Sept. 16, 2023), https://www.census.gov/newsroom/stories/stepfamily-day.html. ↩︎

Bookending the first week of September with Labor Day is a less recognized holiday that deserves more attention from planners, advisors, and savers: National 401(k) Day. 

Though we are in an era of generally declining economic confidence, many Americans are still somewhat upbeat about their retirement savings. However, how they feel about their retirement may not match what is actually in their 401(k) accounts. National 401(k) Day is an ideal opportunity to help clients take stock and ensure that their plans keep pace with their expectations—for both themselves and their loved ones. 

The State of 401(k) Plans in 2025

The 401(k) has become one of the most essential vehicles for building and transferring wealth in America. 

As a product of late 20th-century tax policy that shifted retirement savings from employers to individuals, today roughly 6 out of 10 Americans say that they have a 401(k) or similar employer-sponsored defined contribution plan.¹ In 2025, the average 401(k) balance for Americans across all age groups is $315,820, but this amount varies widely.² 

Vanguard data shows that workers earning $75,000–$99,999 annually have a median balance of $53,112 in retirement savings, nearly double that of those earning $50,000–$74,999 ($27,528).³ Age matters as well: Empower reports that median balances for workers in their 40s ($158,093) are more than double those for workers in their 30s ($77,546),⁴ underscoring the power of compounding growth and saving early and consistently. Yet planning gaps remain. A recent Allianz survey found that only 55 percent of Americans say that they are saving enough for retirement.⁵ 

Just as relatively few people feel confident that they are doing enough to financially prepare for retirement, even fewer have created an estate plan. Roughly double the number of people (6 in 10)⁶ have some type of retirement account than the number of people who have an estate plan (1 in 3).⁷ 

And while retirement savings goals are relatively intuitive and straightforward, ideas such as growth rates, savings, and spending; estate planning issues such as the use of trusts; and Internal Revenue Service (IRS) rules for 401(k) beneficiaries can feel far more complex for your clients. However, they are just as critical to planning for their long-term security. 

Passing on a 401(k): Outright or in Trust? 

Retirement accounts and a primary residence are among the most valuable assets owned by US households.⁸ However, the rules related to transferring each of these after death are very different and call for distinct planning strategies. 

Clients may assume that because they filled out a beneficiary form when they established their 401(k), there is nothing more they need to do. However, a great deal may have changed since then in terms of their life circumstances, their financial situation, and their beneficiaries’ lives. Their form may be out of date and list someone they no longer want as a beneficiary, such as an ex-spouse or estranged child. They also may not understand that this simple way to pass on their account may not offer the most protection for their beneficiaries.

An outright inheritance (such as when someone is named on a beneficiary form) gives the beneficiary immediate and unrestricted access to the full account balance.

That approach may work well for financially responsible adult beneficiaries with no creditor concerns or divorce risk. However, what if the beneficiary is a minor, a young adult, or someone with a history of poor financial management? What if they have creditor issues or special needs that make direct inheritance risky?

Instead of directly naming individuals as beneficiaries of a retirement account, your clients can name a trust. After the account owner’s death, the retirement account transfers to the trust, where it is held and administered according to the trust’s terms for beneficiaries named in the trust. This approach can add an extra layer of protection and flexibility for their loved ones—and an extra layer of control for your clients. However, before helping clients name a trust as a beneficiary of their retirement account, it is important to understand that not all trusts are created equal. 

Conduit and Accumulation Trusts for 401(k) Accounts

When the Setting Every Community Up for Retirement Enhancement (SECURE) Act came into effect in 2020, the rules for passing retirement accounts at death changed radically. Under current law, if a trust (such as a revocable living trust or a standalone retirement trust) named as the beneficiary of a retirement account does not qualify as a see-through trust, the account must be paid out within five years, often the least favorable option. A see-through trust meets specific IRS requirements, allowing beneficiaries to be treated as if named directly and enabling more favorable payout timelines, usually 10 years. Therefore, the first step in retirement account planning with trusts is to ensure that the trust qualifies as a see-through trust.

Once it is established that a trust qualifies as a see-through trust, the next key decision is whether it will be structured as a conduit trust or an accumulation trust, each of which handles retirement account distributions differently. 

Conduit Trust: The Pass-Through Option
With a conduit trust, any funds withdrawn from the 401(k) by the trustee must immediately flow through the trust to the beneficiary within the same calendar year as the withdrawal. The trust cannot hold or reinvest the funds in the trust for the beneficiary’s benefit. Here are some of the features and effects of a conduit trust:

• The beneficiary pays tax. Withdrawn funds are taxed at the beneficiary’s personal income rate rather than at the trust’s tax rate.
• Limited control and protection. Once the funds have been distributed, the trustee has no say over how the beneficiary uses them, and the money loses the trust’s protection from the beneficiary’s creditors, predators, and potential divorces.
• The trustee decides when to take withdrawals. Generally, for most nonspouse beneficiaries, the entire balance of the 401(k) must be paid out within 10 years of the account owner’s death. The 10-year rule applies whether the client’s chosen beneficiary is directly named on the beneficiary designation form or inherits indirectly through a see-through trust. However, a major drawback to directly naming an individual as the beneficiary is that nothing prevents them from liquidating the retirement account before the applicable deadline—whether in large withdrawals or a single lump sum. Since all withdrawals from a 401(k) are subject to income tax, spreading them out over time is generally a better tax strategy that helps manage the tax burden while also reducing the risk of the beneficiary’s mismanagement. A conduit trust can help prevent the beneficiary from withdrawing the entire account all at once by placing withdrawal decisions in the trustee’s hands. The trustee can make withdrawals thoughtfully and possibly over time, considering income tax consequences and the client’s wishes regarding the timing and amounts of distributions made to the beneficiary.

Accumulation Trust: The Discretionary Holding Tank
While retirement funds must still be withdrawn in accordance with the 10-year rule (for most nonspouse beneficiaries), an accumulation trust allows the trustee to decide whether to distribute those withdrawals to the beneficiaries or retain them in the trust, allowing for long-term management and greater protection for beneficiaries.

• The trustee decides. The trustee controls the timing and amount of the withdrawals from the retirement account (subject to the SECURE Act’s limits) and the timing and amount of distributions from the trust to the beneficiary.
• The trust pays tax (if funds are retained). Withdrawals from retirement assets that remain in the trust beyond the calendar year in which they are taken are taxed at the trust’s compressed income tax rates. If the funds are distributed to the beneficiary within that calendar year, the beneficiary is responsible for the income tax.
• Stronger asset protection. Funds kept in the trust stay shielded from creditors, lawsuits, or reckless spending, which may align with your client’s overall estate planning goals.
• SECURE Act and 10-year rule. Subject to the limits of the SECURE Act, the trustee can often strategically spread withdrawals from the retirement account over the 10-year period to manage tax impacts and avoid a single large payout, all without having to immediately distribute those funds to the beneficiary. This flexibility makes accumulation trusts a preferred option for minor children, spendthrifts, or loved ones with special needs.

National 401(k) Day: A Labor of Love

It may not get the fanfare of Labor Day, but National 401(k) Day deserves some love as families celebrate summer’s end. They are enjoying life now, but what about 10, 20, or even 50 years down the line?  

The right trust can help clients overcome natural blind spots around long-term planning only if it is drafted with precision. Post-SECURE Act, even small missteps can trigger accelerated distributions and hefty tax bills. To learn more about planning strategies for your clients’ retirement accounts, call us.

1. What Percentage of Americans Have a Retirement Savings Account?, Gallup (June 2, 2025), https://news.gallup.com/poll/691202/percentage-americans-retirement-savings-account.aspx. ↩︎
2. Paul Deer, The Average 401(k) Balance by Age, Empower: The Currency (July 15, 2025), https://www.empower.com/the-currency/life/average-401k-balance-age. ↩︎
3. Vanguard, How America Saves 2025, at 51 (2025), https://institutional.vanguard.com/content/dam/inst/iig-transformation/insights/pdf/2025/has/2025_How_America_Saves.pdf. ↩︎
4. Deer, supra note 2. ↩︎
5. Americans’ Financial Confidence on Decline Since 2020, Allianz Life Study Finds, Businesswire (May 20, 2025), https://www.businesswire.com/news/home/20250520601577/en/Americans-Financial-Confidence-On-Decline-Since-2020-Allianz-Life-Study-Finds. ↩︎
6. Gallup, supra note 1. ↩︎
7. D.A. Davidson Survey Finds That Two-Thirds of Americans Do Not Have an Estate Plan, DADavidson, https://www.dadavidson.com/Perspectives-Insights/Perspectives-Insights-Article/ArticleID/1391/D-A-Davidson-Survey-Finds-That-Two-Thirds-of-Americans-Do-Not-Have-an-Estate-Plan (last visited Aug. 26, 2025). ↩︎
8. Rakesh Kochhar & Mohamad Moslimani, 4. The Assets Households Own and the Debts They Carry, Pew Rsch. Ctr. (Dec. 4, 2023), https://www.pewresearch.org/2023/12/04/the-assets-households-own-and-the-debts-they-carry. ↩︎

Actor Val Kilmer’s passing in April 2025 highlights estate planning issues that can affect almost anyone. Although Kilmer was a celebrity, these issues—such as managing multistate real estate, deciding what happens to digital assets, and integrating philanthropy to leave a legacy and help reduce taxes—are concerns that can be particularly relevant to individuals who have an out-of-state summer home or cottage, are unmarried older clients who cannot take advantage of spouse-related legal benefits, or are creative younger clients with digital portfolios. 

Kilmer, best known for playing Iceman in Top Gun, Doc Holliday in Tombstone, Jim Morrison in The Doors, and Batman in Batman Forever, died with an estimated net worth of $10 to $25 million. ¹At the time of his death, he was the divorced father of two adult children. He owned a California home, a New Mexico ranch, and digital assets that included a synthetic recreation of his voice. 

Public Life, Private Death 

While his two children are expected to inherit most of his estate, his estate plan details have not been made public, as is typical of celebrities and other high-profile individuals who want to protect their privacy and that of their loved ones. It is usually only when beneficiary or creditor conflicts emerge and subsequent court filings are made that estate plan details leak to the public. 

Let that be lesson one from Kilmer’s estate: he seems to have planned enough to keep his plans for his estate under wraps—a priority for the actor, who spent much of his later days seeking refuge from Hollywood at his New Mexico ranch, preferring a simpler private life.

Estate Taxes 

With his net worth potentially exceeding the 2025 federal estate tax exemption of $13.99 million per individual, Kilmer’s estate could face a federal estate tax liability.

California, where Kilmer died, has no state estate tax. New Mexico, where he owned significant real estate, also imposes no state estate tax, eliminating the need for state-level estate tax planning. However, his estate could owe federal estate taxes of up to 40 percent on the value of his assets above the $13.99 million federal exemption. 

As an unmarried individual, Kilmer could not leverage the unlimited marital deduction, which allows people to transfer assets tax-free to their surviving spouse during their life and at their death. Alternative estate tax reduction strategies—such as lifetime gifting, valuation discounts, charitable giving, and trusts such as a grantor retained annuity trust—are available to both married and unmarried individuals and may have been part of Kilmer’s estate plan. 

Charitable Planning

There is a good chance that philanthropy figures largely in Kilmer’s estate plan. He was involved in numerous causes throughout his life, supporting organizations focused on environmental issues, animal rescue, human rights, families of police officers who were killed on 9/11, and more.² If he incorporated charitable giving strategies using vehicles such as charitable remainder trusts, charitable lead trusts, and donor-advised funds in his estate plan, he may have reduced his taxable estate while supporting causes he cared about. While clients with federally taxable estates can often receive tax benefits for this type of planning, advisors can remind clients that philanthropy is not just for the ultrawealthy. Charitable gifts can also be a legacy-enhancing way to give back and express one’s values. 

Real Estate in Multiple States

Owning real estate in both California and New Mexico means that the Kilmer estate may need to open an ancillary probate proceeding in New Mexico, which was not Kilmer’s primary residence, if those properties were not addressed in his estate plan. Ancillary probate is a separate and sometimes secondary probate process required in a state where the deceased person owned real property or certain other assets outside the state of their primary residence. It is most often used to transfer title to out-of-state real property.  

Each state has its own laws governing the transfer of real estate, which may differ from the laws of the deceased’s home state. Ancillary probate ensures that the out-of-state property is transferred correctly according to the laws of the state where it is located, but it can expose the deceased person’s estate to two court systems, complicate the overall process, increase administrative costs, and trigger different tax treatments. 

If Kilmer created a revocable living trust, he would have streamlined the administration of his real estate, avoided probate (in both states), and maintained privacy—key considerations for any client with multistate holdings. 

Spousal Support

Kilmer married actress Joanne Whalley, whom he met during the filming of the cult classic film Willow, in 1988. Their divorce was finalized in 1996, not long after the birth of their son. 

A person’s past divorce can create a host of issues if things were not properly cleaned up at the time of their death. For example, if the person never changed the beneficiary on their life insurance or retirement accounts, an ex-spouse might still be entitled to that money, even if that was not the deceased person’s intention. Also, while there is no public record of Kilmer owing ongoing support to his ex-spouse at his death, unpaid spousal or child support can become debts of the estate, reducing the inheritance that heirs and beneficiaries receive. Property that was supposed to be transferred to the deceased person in the divorce may still be in the ex-spouse’s name (either individually or jointly with the deceased person), leading to confusion and possible legal disputes. Advisors should review their clients’ divorce decrees with them to confirm that obligations have ended or have been addressed in the estate plan and all assets are titled properly or have beneficiary designations that align with their new life circumstances.

Digital Assets

In Kilmer’s last appearance in a major film, Top Gun: Maverick, a company called Sonatic helped Kilmer digitally recreate his voice (lost after throat cancer treatment) using AI technology and past recordings.³ This voice recreation has financial value, so what happens to the legal rights to it now that Kilmer has passed away? That answer will largely depend on state law. California law extends a person’s rights to their name, image, and voice for 70 years after death.⁴ This means that Kilmer’s children, who presumably control his estate, have the exclusive right to approve any future use of his likeness, such as a film cameo, commercial appearance, or holographic performance.⁵

Kilmer’s digital estate may also include intellectual property such as unpublished writings, scripts, digital art, or other assets stored on devices or in the cloud. Any digital intellectual property stored locally or remotely, including notes, photos, and videos, could be considered a digital asset and should be planned accordingly.

For noncelebrities, the types of digital assets at stake may differ, but the need for planning is just as urgent. We now live in the age of the microcelebrity, where being an influencer is a career goal for more than half of Gen Zers, and digital assets (e.g., videos, photos, online courses, and virtual goods) are core to personal branding, income generation, and legacy.⁶ They may also hold deep sentimental value for people who are not “internet-famous.” 

If a client has digital photos, videos, online accounts, or cloud storage accounts, creating digital asset inventories, establishing powers of attorney with explicit digital asset access and management authority, and appointing a digital executor or trustee are essential first steps amid a rapidly evolving space that requires creative solutions and ongoing attention to new laws and technologies.

Be Their Huckleberry

Kilmer’s legacy reminds us that even the most iconic lives require careful planning to preserve their voice—literally and figuratively—for the next generation. 

If your clients come looking for estate planning advice, with our help you can confidently tell them (as Kilmer’s Doc Holliday said in Tombstone), “I’m your huckleberry.”

1. Val Kilmer’s Net Worth in 2025: Top Gun Star’s Fortune and Inheritance Plan Revealed, FM. (Apr. 2, 2025), https://www.finance-monthly.com/2025/04/val-kilmers-net-worth-in-2025-top-gun-stars-fortune-and-inheritance-plan-revealed. ↩︎
2. Val Kilmer: Charity Work, Events, and Causes, Look to the Stars; The World of Celebrity Giving, https://www.looktothestars.org/celebrity/val-kilmer (last visited July 30, 2025). ↩︎
3. Philip Ellis, Fans of Val Kilmer Can Hear His Voice Again Thanks to Artificial Intelligence, Cancer + Careers (Apr. 2022), https://www.cancerandcareers.org/newsfeed/news/posts/2022/4/fans-of-val-kilmer-can-hear-hi. ↩︎
4. Sam Fielding, Val Kilmer’s Legacy: Who Controls His Voice, Image, and Royalties After Death?, Lawyer Monthly (Apr. 2, 2025), https://www.lawyer-monthly.com/2025/04/val-kilmer-estate-voice-image-legacy. ↩︎
5. Id. ↩︎
6. Gili Malinsky, 57% of Gen Zers want to be influencers—but “it’s constant, Monday through Sunday,” says creator, MakeIt (Sept. 14, 2024), https://www.cnbc.com/2024/09/14/more-than-half-of-gen-z-want-to-be-influencers-but-its-constant.html. ↩︎

Regis Philbin, the Guinness World Record holder for the most hours on US television, was a familiar face in millions of homes for decades. By the time he retired from his show Live with Regis and Kelly in 2011, he had spent more than 16,740 hours in front of the camera.¹ 

Philbin passed away in 2020, leaving an estate worth approximately $150 million² that was likely divided between his wife, Joy, and his children. He had four children: Danny (who died in 2014) and Amy from his first marriage and daughters Joanna and Jennifer with Joy. While Philbin accumulated most of his net worth as the host of game and talk shows, his estate planning documents and court records show that he also left millions in other assets behind. 

More Properties, More Problems

At the time of his passing, Philbin owned at least two properties: a Manhattan apartment³ and a Beverly Hills condo.⁴ 

According to Radar Online, Philbin’s estate filed a will with New York Surrogate’s Court (i.e., probate court) that listed $16.5 million in property and millions more in stocks, bonds, and cash to be overseen by his wife, Joy, as the executor of his will.⁵ However, a large portion of his estate was placed into a trust containing assets not listed in the will, court documents show.⁶ 

That trust could have contained his New York and California homes, which would have spared Joy and the rest of his loved ones the considerable hassle of probating properties in multiple states. 

Real property titled in an individual’s name (as opposed to being held in a revocable living trust) that is located in a state other than where the individual lives may require a separate probate proceeding in each state where the property is located. State laws vary, but New York’s probate process is notoriously slow and burdensome (especially in New York County, where Manhattan is), while California’s comes with both statutory attorney and statutory executor fees based on the estate’s gross value. 

Predeceased Heirs and Plan Updates

A notable aspect of Regis’s plan was that he updated it following the death of his son, Danny. 

Born with a spinal cord defect, Danny died of natural causes in November 2014, predeceasing his father by nearly six years.⁷ 

Regis signed his final will just two months later, on January 15, 2015.⁸ The timing of these events is probably not a coincidence. Regis’s 2015 estate plan is a case study in why estate plans must change with life. The death of a child, the birth of a grandchild, a new marriage, or a change in financial circumstances are some of the key life events that should trigger clients to revisit their plan. An outdated estate plan may not reflect a person’s wishes at the time of their death and could result in outcomes they would never have chosen.

My Three Daughters

Blended families are becoming increasingly common in America. Today, approximately one in six children grows up in a blended household, and nearly two in five families include a stepparent.⁹ These numbers continue to rise as remarriage becomes more common. 

While Philbin did not necessarily live in a blended household, he did have children from different relationships. It would not be uncommon in that situation to face challenges when deciding how to fairly structure an estate plan. Reports indicate that Philbin took a thoughtful approach, providing for his surviving spouse and their children in common while also making provisions for the children from his earlier relationship. 

However, when it came to appointing someone to carry out the terms of his will in probate court (called the executor in New York), Philbin prioritized his wife and their children by leaving clear instructions. “I appoint my spouse, Bette Joy Philbin, as my Executor of this Will,” Philbin’s will states.¹⁰ “If my spouse shall not qualify or, having qualified, at any time shall not continue to act, then I appoint my daughter Joanne Philbin as successor Executor of this Will.”¹¹ “If Joanne Philbin shall not qualify or, having qualified, at any time shall not continue to act, then I appoint my daughter, Jennifer Philbin, as successor Executor of this Will.”¹²

This language provides a crucial estate planning lesson to build contingencies into a plan, including having backup decision-makers and heirs. While Danny’s passing underscores the need to update documents as circumstances change, sometimes changes occur after the client’s death, which is why every estate plan should include backup executors, trustees, and beneficiaries to ensure that someone trusted—and chosen by the client—is always available to step in.

Give Your Clients a Lifeline

As a former host of the Who Wants to Be a Millionaire television game show, Philbin gave contestants three “lifelines” to help them answer a question if they needed it: narrowing down their multiple choice options from four to two, phoning a friend to ask them for their insights, or polling the audience. However, clients need a more reliable strategy for their estate plan. Philbin did not leave his “final answer” up to chance—and neither should your clients. 

Regis asked “Who wants to be a millionaire?,” but the more important question is, “Who wants their millions to go where they intended?”. We are here to help you answer it.

1. Most hours on US television, Guinness World Records Limited 2025, https://www.guinnessworldrecords.com/world-records/most-hours-on-us-television (last visited July 30, 2025). ↩︎
2. Regis Philbin Net Worth $150 Million, Celebrity Net Worth (Jan. 30, 2025), https://www.celebritynetworth.com/richest-celebrities/regis-philbin-net-worth. ↩︎
3. Mike Mishkin, Upper West Sider, Regis Philbin, Dies at 88, I Love the Upper West Side (July 25, 2020), https://www.ilovetheupperwestside.com/upper-west-sider-regis-philbin-dies-at-88. ↩︎
4. Teles Cofounder Ernie Carswell Reps Regis Philbin in Condo Buy, Medium (Mar. 2, 2016), https://medium.com/real-estate-reimagined/teles-cofounder-ernie-carswell-reps-regis-philbin-in-condo-buy-effed2929507. ↩︎
5. Douglas Montero, Regis Philbin’s Will Reveals TV Legend Left Behind $16 Million In Property, Put Wife Joy in Charge of Estate Worth $150 Million, Radar (June 1, 2021), https://radaronline.com/p/regis-philbin-will-16-million-wife-joy-kids-millions-kelly-ripa. ↩︎
6. Id. ↩︎
7. Stephanie Dube Dwilson, Daniel Philbin’s Cause of Death: How Did Regis Philbin’s Son Die? (EntertainmentNow (Dec. 19, 2024), https://entertainmentnow.com/news/daniel-philbin-regis-son. ↩︎
8. Douglas Montero, Regis Philbin’s Will Reveals TV Legend Left Behind $16 Million In Property, Put Wife Joy in Charge of Estate Worth $150 Million, Radar (June 1, 2021), https://radaronline.com/p/regis-philbin-will-16-million-wife-joy-kids-millions-kelly-ripa. ↩︎
9. Kristin McCarthy, M.Ed., Blended Family Statistics: A Deeper Look Into the Structure, Love to Know (Aug. 5, 2021), https://www.lovetoknow.com/parenting/parenthood/blended-family-statistics. ↩︎
10. Douglas Montero, Regis Philbin’s Will Reveals TV Legend Left Behind $16 Million In Property, Put Wife Joy in Charge of Estate Worth $150 Million, Radar (June 1, 2021), https://radaronline.com/p/regis-philbin-will-16-million-wife-joy-kids-millions-kelly-ripa. ↩︎
11. Id. ↩︎
12. Id. ↩︎

Born into an impoverished Houston household in 1949, George Foreman lived a rags-to-riches tale of pure Americana: Olympic gold medalist, heavyweight boxing champion, ordained minister, global pitchman, and father to a dozen children. 

At the time of his death on March 21, 2025, his estate was estimated to be valued at $300 million. Surprisingly, most of his wealth came not from his triumphs in the ring but from his success as a businessman—specifically from the popularity of the George Foreman Grill.¹ From the boxing ring to the boardroom, Foreman built a brand that outlasted his gloves and redefined what a postretirement legacy could look like for a champion athlete. 

Unlike many celebrities, Foreman was considered relatable and connected to his audience. That relatability extends to many of the estate planning issues he had to navigate as someone with multiple marriages, a large blended family, and adopted children. 

Spousal Support

Foreman was married more times (five) than he was crowned world heavyweight boxing champion (twice). 

Foreman’s final marriage, to Mary Joan Martelly, lasted nearly 40 years, a testament to the kind of second act that defined much of his life. His four earlier marriages lasted a total of about nine years.

We do not know whether alimony was part of any of his prior divorce settlements or if Foreman remained liable for any support at the time of his death; the details remain private. However, every ex-spouse is a potential long-term liability unless outstanding or existing obligations are clearly addressed through coordinated planning. 

In most cases, alimony ends when either spouse dies. But not always. A divorce decree can explicitly require that financial support payments continue after the payor’s death—often being satisfied through a life insurance policy naming the ex-spouse as beneficiary. Regardless of whether the life insurance policy lapses or the provision in the divorce decree is forgotten, the estate may still be on the hook for any unpaid obligation of the decedent. A divorce may also create complications after death, such as unresolved child support obligations, property settlement issues, or outdated beneficiary designations on assets such as retirement accounts or life insurance policies. 

Without complete documentation and follow-through, any of these arrangements, buried in decades-old court files, could resurface as claims against the estate after someone dies.

When advisors work with clients who have multiple prior marriages, the discussion should include reviewing every divorce decree and support order, verifying whether all past obligations have been satisfied or clearly documented, and confirming that beneficiaries and account titles reflect the current family structure. 

Foreman the Father

Foreman often spoke about using his namesake grill to cook for his large family, which included twelve children: five sons (all named George Edward Foreman) and seven daughters, two of whom were adopted. 

He also spoke frequently about the importance of family. In one interview, he said his children were “one thing I’m most proud of” and that “you may have . . . an ex-wife or an ex-husband, but you can never have ex-children.”² 

Foreman’s devotion to fatherhood leaves little doubt that his children, and possibly his grandkids and great-grandkids, will be beneficiaries of his estate regardless of whether they were part of his family through birth or adoption. Foreman said that “each child is different and you’ve got to treat them differently.”³ According to daughter Georgetta, he made each child feel special with dedicated days that would focus on just one child at a time.⁴ Accordingly, Foreman’s estate plan may have followed a “fair but not equal” inheritance structure that recognizes differing needs, life paths, and circumstances among heirs and avoids a one-size-fits-all approach.

For advisors, it is worth digging deeper when a client mentions “fairness” regarding their estate plan. Equal shares are not always what they appear to be, and inheritances can be equitable in ways that are not always obvious. 

For example, a daughter running a family business might inherit more operational control than a son pursuing a music career, and a special needs heir might be provided for through a supplemental needs trust while others may receive outright distributions.

Which George? 

What’s in a name? When the name is George Foreman, a great deal. 

Foreman explained on many occasions that he named all his sons George to unite his children.⁵ “I wanted them to have something in common . . . I tell them if one goes up, we all go up. If one gets in trouble, we’re all in trouble.”⁶

However, having many children with the exact same name could lead to trouble in legal or financial documents if each George Edward Foreman was not clearly differentiated as a distinct beneficiary. “To my son George” works only if you have one. If you have five, clarity is critical.

The boxer gave each son a nickname (George Jr. is “Junior”; George III is “Monk”; George IV is “Big Wheel”; George V is “Red”; and George VI is “Little Joey”) so “they’re recognized and treated as individuals.”⁷ He may have referenced these nicknames in an estate planning document, such as a will or a trust, or in joint accounts, beneficiary designations, or other financial arrangements where his sons were beneficiaries, to ensure that each “George Edward Foreman” was correctly distinguished. 

Clients probably do not have several identically named sons or daughters, but multiple people sharing the same name within a family is a common way to pass names down through generations and honor family members. To avoid any confusion or legal complications, clients should always use as much specific identifying information in official documents as possible (e.g., middle initials or full middle names, dates of birth, addresses, or Social Security numbers) when dealing with beneficiaries who share the same (or similar) name. 

Business Champ

Foreman earned significantly more money from his endorsement deal for the George Foreman Grill than from his boxing career.⁸ 

The Lean, Mean, Fat-Reducing Grilling Machine reportedly earned him more than $250 million in royalties and naming rights.⁹ At one point, Foreman earned up to $8 million per month from his profit-sharing deal with Salton, Inc. (now Spectrum Brands).¹⁰ In 1999, the company paid him $138 million in cash and stock for the right to use his name on the grill in perpetuity.¹¹ To date, the grill has sold over 100 million units.¹² 

For someone whose name became a commercial empire, clear planning around intellectual property and brand management would be essential. It is possible that Foreman’s estate plan addressed these issues using tools such as a family trust or business entity (e.g., a corporation or limited liability company), perhaps allocating control or residual income among his loved ones. 

Clients who own a business, earn royalties, or have valuable intellectual property must look beyond financial asset division in their estate plans. They must also consider who will manage, protect, and benefit from those intangible, yet highly valuable, assets.

Advisors can approach the topic of intangible assets with clients by asking questions such as the following: Who owns the intellectual property or business interest? Who, if anyone, is named as successor or manager? Are royalty rights, control rights, and income distribution clearly addressed in your estate plan? 

Create a Plan That Performs After the Final Bell

Even a champion like George Foreman, who went toe-to-toe with Muhammad Ali and Joe Frazier, could not duck the need for a comprehensive estate plan that addressed his unique circumstances and asset portfolio. 

Help your clients land the right combinations before the final bell so that, when it sounds, their beneficiaries do not have to rely on a controversial scorecard for a decision. 

1. George Foreman Net Worth $300 Million, Celebrity Net Worth (Mar. 22, 2025), https://www.celebritynetworth.com/richest-athletes/richest-boxers/george-foreman-net-worth. ↩︎
2. Rod Thomas, George Forman on Fatherhood, CBN, https://cbn.com/article/not-selected/george-foreman-fatherhood-0 (last visited July 30, 2025). ↩︎
3. Id. ↩︎
4. Id. ↩︎
5. Makena Gera, George Foreman’s Kids: All About the Boxing Legend’s Sons and Daughters (and Why He Named All 5 of His Sons George, People (Mar. 22, 2025), https://people.com/all-about-george-foreman-kids-8683510. ↩︎
6. Id. ↩︎
7. Deanna Janes, Why did George Foreman name his 5 sons George? He’s offered a few reasons, Today (Mar. 22, 2025), https://www.today.com/parents/celebrity/george-foreman-kids-rcna134106. ↩︎
8. George Foreman Net Worth $300 Million, Celebrity Net Worth (Mar. 22, 2025), https://www.celebritynetworth.com/richest-athletes/richest-boxers/george-foreman-net-worth. ↩︎
9. Brian Warner, How George Foreman Knocked Out a Quarter-Billion Dollar Payday With an Unlikely Invention, Celebrity Net Worth (Mar. 12, 2025), https://www.celebritynetworth.com/articles/entertainment-articles/george-foreman-reveals-exactly-much-made-famous-grill. ↩︎
10. Id. ↩︎
11. Id. ↩︎
12. Id. ↩︎

Ice cream is a delicate balance of fat globules, ice crystals, air bubbles, and sugar suspended in a watery base. Once the temperature climbs above freezing, the ice crystals start to melt. Air bubbles expand. Fat molecules soften. Without its frozen framework, your favorite treat loses shape fast.

Estate plans work in much the same way.

A well-structured estate plan relies on a careful balance of people, documents, instructions, and timing. But under the pressure of life’s rising “temperatures,” even the most thoughtfully crafted plan can melt if not maintained.

On the other hand, a pint of ice cream left in the cold for too long will become a freezer-burned block. Similarly, estate plans can lose their texture and flavor when forgotten.

As with ice cream, estate plans can change under pressure. Here is how to keep your clients’ plans fresh, structured, and palatable through regular reviews, updates, and check-ins.

Understanding the “Melting Points” of an Estate Plan

Life has a way of heating things up. New marriages, growing families, changing finances, and evolving relationships can raise the temperature on, and destabilize, a once-solid estate plan. By understanding these “melting points,” advisors can better guide clients as to when a review and update are crucial:

• Complexity. More ice cream and toppings (e.g., a plan with trusts, business interests, or layered provisions) mean more chances for something to go wrong—and more of a mess to clean up when they do. 
• Structure. A tightly packed pint holds its form longer than a lopsided scoop. Similarly, a well-designed trust packed with built-in contingencies is more resilient than a basic one-size-fits-all will. Still, neither is immune to the long-term effects of change.
• Ingredients. Rich, high-fat ice cream melts more slowly. In estate planning, the ingredients are your cast of characters: beneficiaries, executors, trustees, and agents. When those relationships change, the estate plan “recipe” needs to be adjusted.
• Homemade versus store-bought. Homemade ice cream behaves differently than the commercial stuff. A do-it-yourself estate plan might feel personal, but it often lacks the structure and durability of a professionally made plan. 
• Varying recipes. Ice cream brand formulas vary, as do clients and their estate plans. What works for one client might not work for another, and the “melting point,” i.e., the sensitivity to life changes and the need for frequent updates, can vary significantly. The key is knowing your client’s ideal formula.
• Temperature flares. Major life changes such as marriage, divorce, births, deaths, health issues, and financial shifts are like turning up the heat. These “flash points” can quickly make an estate plan melt away if not addressed.
• External factors. Ice cream melts faster with air circulation. Even a light breeze (changes in tax laws, state statutes, or court rulings) can speed up a plan’s meltdown. 

Freezer Burn: When Plans Go Stale

An estate plan does not have to melt to be ineffective. Sometimes, the biggest problems come from leaving it in the deep freeze for too long. While life’s major events can “melt” a client’s estate plan, neglect causes a different kind of damage: freezer burn.

Freezer burn dulls the flavor and ruins the texture of even the most premium ice cream, turning it into something you would not want to serve to your friends and family. 

Estate plans can suffer the same fate. A will, trust, or power of attorney might technically still be valid, but if it has not been reviewed in years, it may have become rigid and unworkable. Beneficiaries and fiduciaries may no longer be appropriate. Distribution instructions may no longer reflect the client’s goals or current law. What was once a finely crafted confection is now too hard to handle. 

Sticky Situations: When Sweet Intentions Turn into a Mess

An estate plan made with the right ingredients and served at the ideal time and temperature satisfies like ice cream on a warm summer day. But if ice cream is left in the glare of the sun or the back of the freezer, it can change into something unfit for consumption. Here are a few common ways outdated plans can dissolve into a mess:

• Forgotten flavors: Afterborn children or grandchildren are left out. Clients often set their estate plans and forget them, not realizing that new additions to the family, whether children, grandchildren, or steprelatives, may not be included unless their plan is revised.
• Lingering tastes: An ex-spouse is still named. Divorce may not automatically remove an ex-spouse or their family members from a will, trust, or power of attorney. Failing to update these designations can leave a former spouse in control of healthcare or finances or in line to inherit. Their continued inclusion can lead to costly court battles to ensure that the right beneficiary receives the client’s money and property.
• Missing ingredients: A new spouse is not included. Marriage does not always override old documents. If a new spouse is not specifically named, they may receive less than intended or be left out altogether.
• Changed preferences: Outdated decision-makers and beneficiaries. Relationships shift over time. Someone who once seemed like the perfect choice to act as a healthcare proxy or trustee may no longer be close, available, or aligned with the client’s values.

The Mess Left Behind

On a summer afternoon, you might stroll past a melted ice cream cone on the warm pavement and wonder what happened—and who is going to clean it up. When that mess is an outdated estate plan, it is usually loved ones who are left to deal with it. 

• An unplanned trip to probate court. Outdated or incomplete plans can force families into a time-consuming, costly, and public probate court proceeding during life or at death to handle the following issues:
  • Appointing someone to make urgent healthcare decisions
  • Obtaining authority to manage accounts and pay bills when the client cannot
  • Determining who inherits what and how much

• The wrong people holding the spoon. When documents are not updated, individuals who are no longer part of the client’s life may end up with decision-making power and even a share of the estate.
• Some loved ones left without a taste. New family members may be unintentionally excluded, and outdated distribution provisions may no longer reflect the client’s intent, leaving spouses or afterborn children with too little or nothing at all.

Avoiding Melt and Freezer Burn with Regular Plan Reviews

While most ice cream inevitably melts under time and pressure, scientists have invented a nonmelting version using stabilizers and a little ingenuity.¹ 

Regular reviews (every three to five years, or after major life events) are the “stabilizers” that keep a plan from turning into a sticky puddle or a block of freezer-burned regret.

No plan stays fresh forever. However, with your guidance, regular updates, and a spoonful of help from our team, your clients’ estate plans can retain their shape, flavor, and intent. 

This National Ice Cream Month, encourage your clients to treat their estate plans like their favorite dessert: something worth preserving, enjoying, and keeping unspoiled for the people who matter most.

1. Emilia Morano-Williams, The Science Behind the Non-Melting Ice Cream Phenomena, Mold (Aug. 30, 2017), https://thisismold.com/uncategorized/the-science-behind-the-non-melting-ice-cream-phenomena. ↩︎

Most clients start with a “vanilla” estate plan to cover the essentials. They can then add “toppings” such as inheritance timing and conditions or charitable components that turn a basic plan into one that is made to order for them. 

However, before opening up the whole menu of estate plan toppings, advisors may first want to present a few flavor options.

Start with a standard scoop or two, such as a will or revocable living trust, before piling on the toppings. Drizzle on a trust provision, sprinkle specific instructions in their will, and your client will be well on their way to a signature dessert. 

What Advisors Can Learn from the Trends

We all scream for . . . hot fudge? 

Maybe not all of us, but that is America’s favorite ice cream topping, preferred by 35 percent of people, according to the International Dairy Foods Association.¹ Rounding out the top three are whipped cream and caramel sauce.²

There is also a growing appetite for artisanal toppings (think small-batch chocolates or house-made sauces), driven by a demand for premium ice cream and more indulgent, elevated dessert experiences.³ This trend reflects a broader consumer shift toward personalization and control. Diners are increasingly looking for tailored, curated experiences in their main dishes and their dessert bowls. 

Companies such as Baskin-Robbins have leaned into playful personality mapping, linking flavors to traits: vanilla with idealism and impulsiveness, chocolate with charm and drama, and strawberry with tolerance and introversion.⁴

Smucker’s did the same with toppings: hot fudge fans are confident and optimistic, nut lovers are traditionalists, and those who favor sprinkles are bold and vivacious.⁵

Lighthearted and unscientific as these comparisons are, they offer a fun entry point for talking with clients about estate planning. Drawing parallels between personality and planning preferences—between topping choices and estate plan provisions—can spark meaningful conversations. Even simple decisions such as how to top a sundae reflect a growing desire for agency and self-expression.

Today’s consumer is paradoxical. They are informed and empowered yet often overwhelmed. They want control, but they also crave curation and guidance. 

Modern estate plans are almost infinitely customizable. But with so many tools and provisions to choose from, clients can feel like someone staring at a giant sundae bar, unsure how to build the right combination. 

This is where advisors come in. With the right framing, you can help clients sort through the many estate planning extras available to them—timing, structure, charitable giving, and more—to create a plan that is as customized, satisfying, and unique as their favorite sundae.

Timing Inheritances: Adding Toppings at the Right Time

The temperature of hot fudge or caramel needs to suit the type of ice cream to create the perfect treat. Too hot on delicate soft serve, and the ice cream melts too fast; too cold on dense gelato, and it will not spread well. Timing matters.

In estate planning, the type of ice cream is analogous to the type of beneficiary, which is based on the beneficiary’s age, maturity, and readiness to handle an inheritance. Advisors help clients tailor the timing of inheritance distributions so they occur when beneficiaries can best handle them, like adding toppings at just the right time and temperature.

• Immediately. For mature beneficiaries ready to manage wealth, a warm drizzle of hot fudge can satisfy their sweet tooth right away. 
• At certain ages. For younger loved ones, staggered distributions at, say, ages 25, 30, and 35 are like waiting for warm toppings to cool off enough to flow smoothly and steadily.
• After milestones. Distributions tied to key life events such as graduating from college or buying a home are like the ice cream sundae you might promise a child as a reward for specific accomplishments.

How Beneficiaries Inherit: Serve It Their Way

The best pairings take into consideration not only the type of ice cream (i.e., the beneficiary), but also the container (i.e., the trust structure). Americans tend to prefer bowls or waffle cones; only 1 in 10 says eating it straight out of the carton is their favorite consumption method.⁶ Others prefer a sugar cone, waffle bowl, or cake cone, which could be compared to how beneficiaries have their inheritances served up.⁷

• Right to use property owned by a trust. Families often share dessert. And they can also share property. Like a banana split meant for two (or more), certain assets can be held in trust and shared among beneficiaries. This approach allows multiple people to enjoy the benefit of a valuable asset such as a family home or vacation property without requiring an outright distribution, preserving the treat while still letting everyone have a taste.
• Having their expenses paid by a trust. Parents might promise their kids ice cream, but that does not mean that they can order all of the toppings and fixings they want. A trust can be designed to cover key expenses such as education, healthcare, or living costs rather than anything the beneficiary desires. It is a way to sweeten the deal and treat beneficiaries within limits.

Charitable Giving: Sweet Ways to Give Back 

Some find that the sweetest part of their estate plan is what they give away. Charitable giving can be the cherry on top of an estate plan that ties it all together. 

• Outright gift. An outright bequest to a charity is simple, direct, and impactful, like adding whipped cream to deliver an immediate burst of sweetness right off the top.
• Creating an endowment. Comparable to a sundae with layered toppings, an endowment provides perpetual funding or “lasting flavor” over a longer period. 
• Creating a foundation. A foundation is the signature topping bar of charitable giving, letting you mix and match gifts to support any cause or occasion. Stick with the classic favorites or get creative with more specialized offerings. 

Host an Ice Cream Social with Your Clients This Summer 

An estate plan helps clients feel empowered and in control. However, too many “toppings” can turn choice into confusion. 

Advisors can step in and turn a fun conversation about ice cream into a meaningful one about their client’s legacy. Set up a time to talk about financial and estate planning with your client over a scoop this summer. Nobody says no to free ice cream, especially when good advice is sprinkled in. 

Feel free to come up with your own ice cream metaphors—and to get in touch with us to discuss ways to help clients leave a well-deserved treat for their loved ones or the charitable causes they care deeply about.

1. Ice Cream & Frozen Novelty Trends Survey – May 2024, Int’l Dairy Foods Ass’n (May 21, 2024), https://www.idfa.org/resources/ice-cream-frozen-novelty-trends-survey-may-2024. ↩︎
2. Id. ↩︎
3. Jim McCormick, Top Ice Cream Trends: Trends and Statistics Shaping 2025, Toast https://pos.toasttab.com/blog/on-the-line/ice-cream-trends (last visited June 23, 2025). ↩︎
4. Baskin-Robbins Reveals What Your Favorite Ice Cream Flavor Says About You, Baskin-Robbins (July 16, 2013), https://news.baskinrobbins.com/news/baskin-robbins-reveals-what-your-favorite-ice-cream-flavor-says-about-you. ↩︎
5. Chris, Your Favorite Ice Cream Topping Reveals Your Personality, 95.9 The Hawk (May 29, 2023), https://959thehawk.com/2023/05/29/your-favorite-ice-cream-topping-reveals-your-personality. ↩︎
6. Ice Cream & Frozen Novelty Trends Survey – May 2024, Int’l Dairy Foods Ass’n (May 21, 2024), https://www.idfa.org/resources/ice-cream-frozen-novelty-trends-survey-may-2024. ↩︎
7. Id. ↩︎

Americans love ice cream. Estate planning? Not so much. 

The average American eats roughly 19 pounds of ice cream per year,¹ and around 90 percent of households regularly keep ice cream in the freezer.² To celebrate our favorite frozen treat, President Ronald Reagan proclaimed July to be National Ice Cream Month in 1984 following a joint resolution that took less than two months to breeze through Congress.³ 

If only all decisions were so quick and easy. With countless combinations of brands, flavors, and toppings to choose from—not to mention bar, cone, or tub; dairy or nondairy; at home or at an ice cream shop—choosing ice cream can be hard.

The so-called “ice cream dilemma” has become a metaphor for the difficulty of decision-making when many options exist.⁴ This dilemma could help explain why approximately only one in three American adults has an estate plan⁵: They do not know where to start and are overwhelmed by the available choices. 

Advisors encouraging their clients to create an estate plan may want to start small, with relatively easy decisions such as how to transfer money and property outside of probate. Unlike the selection of 31 flavors at Baskin-Robbins, nonprobate transfers come in three basic flavors of passing assets to beneficiaries without going through the formal probate process. 

Joint Ownership: A Double Scoop

Assets held jointly with rights of survivorship automatically pass to the surviving owner upon death, bypassing probate. 

Joint ownership is like a double scoop on a single cone—great when things are stable and hold up, but if one scoop melts or starts to slip, the whole thing can topple. It can be sweet when both owners are aligned but risky when life gets messy and you are the one stuck holding the cone. 

Pros:

• Simple setup. Creating joint ownership typically requires updating a deed or account ownership form at the relevant financial institution. It involves minimal cost and minimal paperwork.
• Incapacity flexibility. If one owner becomes incapacitated (unable to manage their affairs), the other retains full control of the asset without court intervention (such as a guardianship or conservatorship). This arrangement can be useful for aging couples or an adult child and parent.
• Automatic transfer. Upon the death of one owner, the surviving owner automatically and immediately inherits the asset without delay or probate proceedings.

Cons:

• Shared control and consent. All owners must agree about decisions regarding the asset, such as selling real estate or, in some cases, liquidating and closing the joint bank account. This requirement can complicate things if there is disagreement or if one owner is incapacitated and has not granted someone the authority to act on their behalf in a financial power of attorney.
• Mutual liabilities. The jointly owned asset is exposed to the financial risks of each owner, which could include creditors, lawsuit judgments, or divorce proceedings. (There is an exception for a special form of joint ownership exclusively for married couples, called tenancy by the entirety, which provides unique legal protections and differs from other types of joint ownership.) Shared vulnerability puts the entire asset at risk. 
• Tax implications. Adding a joint owner may be treated as a lifetime gift for gift and estate tax purposes. Depending on the value of the shared asset, adding a joint owner could trigger gift tax consequences (if the asset’s value exceeds $19,000 in 2025) and require a tax filing. This approach may also forfeit a basis adjustment at death, resulting in potentially higher capital gains tax if the asset is later sold by the joint owner and had increased in value since it was originally acquired. 

Designations: Estate Planning Sprinkles

Naming a beneficiary or using a transfer-on-death (TOD) or payable-on-death (POD) designation is a straightforward way to transfer assets. These designations are widely available for brokerage accounts, bank accounts, insurance policies, and even real estate in some jurisdictions. Think of them as the sprinkles on an estate plan: They are easy to add but can be the first part to fall off and get scattered if you are not paying attention. 

Pros:

• Easy execution. Most institutions allow account holders to add or update beneficiary designations by filling out a paper form. Some even allow online updates. No probate, no attorneys, and no costs. 
• Swift access after death. After the account holder’s passing, beneficiaries generally need to present only a death certificate to the financial institution or insurance company to claim the asset, avoiding court delay.

Cons:

• No help during incapacity. These designations take effect only when the owner dies. They are of no help to the account owner when they are alive but incapacitated. Additional tools, such as a financial power of attorney, are needed to address this gap.
• Unprotected inheritance. The named beneficiary will receive the asset outright, making it vulnerable to the beneficiary’s creditors, divorcing spouse, or poor spending habits if not protected by other estate planning tools. 
• One-size-fits-all. Beneficiary designations offer no built-in flexibility or control over when or how the inheritance is given to beneficiaries. There are no mechanisms to set conditions, stagger distributions, or protect the inheritance from potential mismanagement. Control provisions offered by other estate planning tools allow the client to thoughtfully leave an inheritance to minor children, beneficiaries with special needs, or adult beneficiaries who have trouble managing their finances.

Trusts: A Custom Sundae

Trusts are the custom-made sundae of estate planning. They can be layered, made to order, and individually crafted to detailed specifications. 

Pros:

• Probate-free privacy. Any assets properly titled in the trust’s name or made payable to the trust at the owner’s death bypass probate and remain private.
• Incapacity planning. A trust can be set up so that a successor trustee can immediately step in to manage trust assets for the client and on the client’s behalf without court involvement if they become incapacitated.
• Customized inheritance. Forget 31 flavors. Trusts are far more customizable than that. They can contain any number of specific instructions about distributions, such as those for education, healthcare, or reaching certain milestones. Trusts can also provide for long-term management of assets for future generations or beneficiaries with special needs. 

Cons:

• Requires asset retitling. For a trust to work properly, the client must retitle their assets in the name of the trust or designate the trust as beneficiary of each applicable trust asset. An attorney can help with this process. 
• Administrative costs. Trust provisions may require ongoing administration fees, so clients can expect to pay more when they go off menu and customize their estate plan order with a trust. 

Trusts are best for clients with complex estates, young or special-needs beneficiaries, or a desire for control over asset distribution. They are perfect for prioritizing privacy, incapacity planning, and protecting inheritances from the beneficiaries’ creditors or divorcing spouses.

Scoop Up the Opportunity

This July, use the fun of National Ice Cream Month to start client estate planning conversations about which “flavor” of nonprobate transfers may best suit them, their assets, and their priorities. You might even incorporate a bit of “ice cream psychology”⁶ to get a feel for what their eating style says about their personality and how this can influence planning decisions. 

Let’s make clients’ financial futures as sweet as their favorite dessert. Get in touch for assistance with trust setup and other estate plan strategies.

1. July Is National Ice Cream Month, Int’l Dairy Foods Ass’n, https://www.idfa.org/july-is-national-ice-cream-month (last visited June 23, 2025). ↩︎
2. Linda Rodriguez McRobbie, How Ice Cream Made America, Saturday Evening Post (June 19, 2024 https://www.saturdayeveningpost.com/2024/06/how-ice-cream-made-america. ↩︎
3. Proclamation 5219—National Ice Cream Month and National Ice Cream Day, 1984, The Am. Presidency Project (July 9, 1984), https://www.presidency.ucsb.edu/documents/proclamation-5219-national-ice-cream-month-and-national-ice-cream-day-1984. ↩︎
4. Steven Rudolph, Solving the Ice Cream Dilemma (2011). ↩︎
5. Rachel Lustbader, 2023 Wills and Estate Planning Study, Caring (Apr. 21, 2025), https://www.caring.com/resources/2023-wills-survey. ↩︎
6. Jonathan Chadwick, Bite, Lick or Nibble? What Your Ice Cream Style Says About Your Personality, Daily Mail (May 12, 2025), https://www.dailymail.co.uk/sciencetech/article-14702571/Bite-lick-nibble-ice-cream-style-says-personality.html. ↩︎