How to Prepare for a Smooth Wealth Transfer

Despite an improved awareness of the need for estate plans, it’s estimated that two-thirds of Americans don’t have any estate planning documents, including wills, living trusts, healthcare directives, durable power of attorney, etc. According to a recent article from mondaq, “Estate Planning Essentials For Seamless Wealth Transfer,” the next two decades will see $68 to $84 trillion transferred to spouses, descendants, trusts and family foundations. How can you prepare for your part?

Even those who have estate plans often fail to update them regularly or fail to place assets in the trust’s name, subjecting those assets to probate, court proceedings, and, in some cases, litigation among family members.

A thoughtful and regularly updated estate plan is critical for families seeking to preserve and pass along their wealth.

Start with a will to outline how you want assets distributed after death and name guardians for minor children if applicable. Without a will, your state’s intestacy laws will direct how assets are distributed, which may not be what you had wanted.

Trusts are used to allow assets to bypass probate, saving time, reducing costs and maintaining privacy. Trusts offer greater control over how and when beneficiaries receive assets, especially important for families with minors, blended families, or those who aren’t sure heirs are ready to inherit wealth.

A common problem in estate plans comes when assets aren’t properly titled. A trust could be established to hold real estate or investment accounts. However, if the asset isn’t retitled and remains in the original owner’s name, it will fall outside the trust and must go through probate.

Estate plans need to be revisited and refreshed over time, especially when life changes. Federal and state laws are also constantly changing and can have a profound effect on the estate plan. A full estate plan review should be done every three to five years or after significant life events.

Structured giving is a powerful way to reduce taxable values and benefit heirs. In 2025, individuals may gift up to $19,000 to as many people as they want without decreasing their lifetime exemption or filing a gift return. For married couples, this limit is $38,000. This may not matter on a year-over-year basis.  However, over time and for several recipients, annual gifts can have a healthy impact on recipients and donors.

The same strategy can include gifting fractional shares of a closely held business. This gradually prepares the next generation for ownership, while reducing the taxable estate.

The next generation often isn’t aware of the size of the estate or the decedent’s intentions. This disconnect can cause confusion, resentment, or financial losses. Open communication about estate plans, values and responsibilities reduces these risks. Consider involving heirs in conversations with your estate planning attorney as you plan.

Preparing for a smooth wealth transfer ensures that your assets are protected, your family is cared for, and your legacy is preserved. At The Werner Law Firm, our estate planning attorneys work with clients to create comprehensive plans, update existing documents, and coordinate wealth transfer strategies that align with your goals and values.

If you have any questions, schedule a free appointment with us through our online appointment page.

You can also read reviews from some of the hundreds of clients we have helped over the years.

Reference: mondaq (Sep. 4, 2025) “Estate Planning Essentials For Seamless Wealth Transfer”