A couple driving in a car
Financial management

5 things you should consider when estate planning

Educate our UHNW group on the details of estate planning and highlight key pieces they may have overlooked.
7 minute read   •   March 31, 2023
success

You have saved this article
Financial management
Estate planning
UGMA UTMA
HNW
Trusts
Campaign
Page
Charitable giving

The future is constantly changing, and it's likely that your estate plan will need to change too.

—Kevin Wick, Senior Estate and Trust Specialist

Even if you already have an estate plan in place, it's crucial to monitor all aspects of that plan as you grow older and your situation evolves. And while you can keep an eye on things yourself, partnering with our team of client-focused wealth management experts can help make sure you're doing the most for your legacy and don't miss anything when it comes to protecting your most valued assets—the people you love.

Your estate plan is one of life's most important decisions. Don't leave anything to chance.

Take inventory

Take stock of your assets (investments, properties, and valuables), determine how much they're worth, and ensure they're titled accurately. The value of your assets can change over time, so it's critical that you continue to analyze them throughout your lifetime. In addition, the way your assets are titled affects where they're going. For example, if they remain in your name when you die, they'll go through probate. If you have investments in a joint account, they belong to the other joint owner. If they're in a trust, they'll skip probate and go to your designated beneficiaries. So don't forget to revisit your assets regularly, including how they're titled.

Ask your relationship manager for more information. Call 844-612-4931 or schedule an appointment online.

 

Establish a trust

Trusts are another component of estate planning that should be revisited regularly. Let's say you set up a trust 10 years ago and acquired a rental property 5 years later. If you want the property titled under your trust, you'll need to make this update once the property is in your name.

Additionally, it's important to understand what your trust does and doesn't do. For instance, a revocable trust can be updated throughout your lifetime: You can add or remove assets, change instructions, or terminate the trust. Income earned is distributed to the trustor (you), and your property is transferred to your beneficiaries after your death. You aren't required to set up a trust, but it's an efficient and structured way to avoid probate.

Pick the right people

When it comes to choosing who will carry out your estate, it's imperative that you appoint those you trust. If you have assets that will go through probate, you'll need to appoint an executor to implement the terms of your will after you pass. A power of attorney (POA) gives a person of your choosing the ability to act on your behalf and make decisions about your property, finances, or medical care (you should have a separate POA document for each of these entities). If you have a trust, you'll assign a trustee to hold the legal title for the benefit of the trust's beneficiaries. The trustee is responsible for the assets and property titled in the trust and for making sure your wishes are carried out correctly.

Trusts—and the assets held in them—can be complex. If you don't feel comfortable choosing an individual to handle your trust, you can appoint a corporate trustee. Learn more about Vanguard's trust services

Give a gift (or 2)

Managing gift exemptions can seem tricky when the amount is constantly changing. The annual gift tax exclusion amount increased from $17,000 in 2023 to $18,000 in 2024, meaning you can give any number of people $18,000 tax-free. But if your gift exceeds this amount (for example, you give your oldest daughter $20,000), the excess ($2,000) could be taxed. However, you and your spouse can gift anyone a total of $36,000 ($18,000 from each of you) and neither you nor the recipient will be taxed.

The lifetime estate and gift tax exemption also increased to $13.61 million this year (from $12.92 million in 2023). This exemption allows you to give a much larger gift to someone without paying the gift tax. Let's say you gift someone $100,000 in 2024; $18,000 will count toward the annual gift exclusion. The remaining $82,000 will trigger the gift tax, but you can file a gift tax return (IRS Form 709) and allocate that amount toward your lifetime estate and gift tax exemption balance so that you won't have to pay taxes.

Understand UGMAs/UTMAs

A Uniform Gifts/Transfers to Minors Act (UGMA/UTMA) account allows you to save money for a minor and offers a way for you to gift funds annually. But before you open an UGMA/UTMA account, think long term: The minor named on the account will have irrevocable access starting at the "age of majority"—between 18 and 21 depending on the state where the account is held. You won't be able to keep them from accessing or dictate what they do with the assets once they reach the age of majority. If you want to save for your child or another minor and still be able to decide how and when the assets are distributed, consider establishing a trust.

Estate planning should be an ongoing process, but you don't have to go through it alone. As a wealth management client, you have Vanguard on your side. And when you enroll in Vanguard Personal Advisor Wealth Management™, you get a uniquely aligned team to help you plan your estate and protect your legacy.

Together, we can take your estate plan further—for you and your loved ones.

Ask your relationship manager for more information. Call 844-612-4931.

Schedule an appointment online

Most Viewed

Retirement

Backdoor Roth IRA What it is and how to set it up

If you are a high-income earner, a Backdoor Roth IRA may be a good retirement investment option for you. Learn what it is and how to set up this type of retirement plan.
Article
IRAs
Retirement

Roth vs. traditional IRAs: A comparison

Compare Roth IRAs vs traditional IRAs to learn the key differences in income requirements, rules for contributions and withdrawals, and tax implications.
Education
IRAs
Retirement

2025 Roth IRA income and contribution limits

Education
IRAs
Personal finance

What to do with an inheritance

Receiving an inheritance—whether a small sum or a large windfall—can be a life-changing event. When a loved one passes away, it's easy to feel the pressure to make big decisions immediately—but you don't have to. Once you've taken the time to breathe, grieve, and heal, you can focus on what to consider when handling your inheritance. When you're ready, here's a guide that can help.
Article
Estate planning
Retirement

A guide to retirement withdrawal strategies

Find the optimal retirement withdrawal strategy to maximize spending and savings.
Article
Living in retirement
Retirement

RMD rules for inherited IRAs

The IRA you're inheriting comes with a few responsibilities. Here's a rundown of what you need to know.
Education
IRAs

All investing is subject to risk, including the possible loss of money you invest. We recommend that you consult a tax or financial advisor about your individual situation.