How You Can Go Beyond the Will

There was a time when most people passed their assets to future generations by simply leaving a will. However, that document doesn’t cover all aspects you should consider for a modern estate plan.

A legacy plan can ensure that all you’ve worked for isn’t gone within a year or two due to mismanagement and overspending. In addition, it can resolve other issues that a will alone cannot.

“Research has shown that an inheritance is often divided among the next generation, each child’s share is dumped in their lap, and all the money’s dissipated in a year or two, whether by being spent or lost,” says Peter Gilbert, an attorney with HighPoint Law Offices in Chalfont, PA.

“It’s a tragedy that the wealth parents accumulated over many years is gone so fast.”

What Is a Legacy Plan?

A legacy plan is a planning strategy involving various documents that can make up a comprehensive estate plan. It’s much more than a will and commonly includes at least one living trust.

“Legacy planning refers to the broader process of deciding how to be remembered and what non-financial and financial gifts one wishes to leave behind for future generations,” according to Randall D. Fisher, a trusts and estates attorney and partner at Omnus Law.

“Estate planning primarily focuses on distributing your assets and property after death, but legacy planning expands the scope to include one’s values, life lessons, family history, charitable intentions, and long-term impact.”

The Benefits of Trusts

Trusts are set up to assign control of the assets they hold to a named trustee and to define the terms and conditions for distributing those assets to beneficiaries.

Your trust document can state that the trustee won’t transfer assets to beneficiaries unless and until certain terms are met. Or, you can give the trustee discretion to decide when and how they should be distributed.

Several types of trusts can have various purposes, but they’re all either revocable or irrevocable, and this is an important distinction.

Revocable Trusts

You can act as trustee of a revocable trust during your lifetime and name a trustee to take over after your death.

As trustee, you maintain complete control over the assets. You can change a revocable trust’s terms or dissolve it and take back the assets you’ve placed into it at any time. Once you pass on, your revocable trust becomes irrevocable.

Irrevocable Trusts

The terms of an irrevocable trust are carved in stone in most cases. You must step aside after you’ve created it and transferred ownership of your assets to it. You must name someone else to act as the trustee from its inception.

An irrevocable trust has distinct advantages over a revocable one. These trusts generally avoid estate and gift taxation at the federal level.

As of 2025, you can transfer up to $19,000 per beneficiary per year without paying a gift tax on the money. Any more than this amount spills over to and is included in your lifetime estate tax exemption, which is $13.99 million per individual or $27.98 million per married couple in 2025.

Because your irrevocable trust, and not you, owns the assets, they don’t contribute to your taxable estate, and the estate tax therefore rarely applies.

Creating an irrevocable trust to hold assets can also protect them against creditor claims made against you and your heirs. Its assets are meanwhile generating additional income if they’re managed correctly.

Other Legacy Plan Benefits

There are numerous advantages to creating a legacy plan. “It reduces family conflicts, prevents probate holdups, lowers taxes, and guarantees that your wishes are respected,” says Mark Hirsch, cofounder of the Templer & Hirsch law firm in Fort Lauderdale and Aventura, FL.

“I’ve seen families flourish due to a carefully crafted legacy plan and others disintegrate in its absence.”

“Using a legacy plan in addition to—or instead of solely relying on—an estate plan provides several key benefits beyond simply distributing your assets,” Fisher says.

“While an estate plan ensures your legal and financial affairs are handled after death, a legacy plan enriches that process by capturing the complete picture of your life’s impact.”

Other Legacy Plan Tools

A solid legacy plan comprises numerous documents that can address several eventualities. Your circumstances will dictate which you might want to use.

For example, a durable power of attorney allows you to name someone to handle your financial affairs if you become incapacitated and unable to handle things yourself.

A health care power of attorney allows you to designate someone to make healthcare decisions for you if you cannot express your wishes yourself.

“Another alternative that avoids the ‘divide, dump, and dissipate’ problem is to set up a family partnership or family LLC,” Gilbert says.

“This is done while the first generation is alive, but shares in these entities can be gifted to children all at once or gradually. The parents will likely remain in charge of the partnership or LLC, but the entity will pass to the next generation, who will take over its management.”

Communicate Your Plan to Your Family

Devising and implementing your legacy plan is just the first step. You should then inform your beneficiaries of its existence. Approximately 60% of wealth transition measures fail due to a lack of communication with family members.

“Initiate the discussion promptly and present it as a thoughtful gesture rather than an order,” Hirsch advises.

“Utilize simple language. I consistently advise clients that clarity helps to avoid conflict. Think about organizing a family meeting with your attorney in attendance to provide an unbiased explanation of the plan.”

The Bottom Line

Legacy plans have been tagged as important tools for those with significant net worth, but they can serve anyone who wants to protect the assets they’ve earned and acquired in life.

A simple will cannot address what happens in the event of your incapacitation. A cohesive legacy plan considers all pertinent factors.

Don’t tackle any of these documents and provisions without the help of a legal professional, however. Touch base with an attorney to make sure you understand all their implications, particularly before you create an irrevocable trust (which usually can’t be undone).