Family Wealth and Estate Planning Articles

OBBB panel discussion held on September 25, 2025, with experts from Lumsden McCormick and Bond, Schoeneck & King.

A quiet trust, also known as a silent trust, is an estate planning tool that keeps beneficiaries unaware of the trust’s existence until a specified age or milestone. While it can preserve motivation and protect heirs from external pressures, it may also lead to missed opportunities or resentment. For some families, an incentive trust, which rewards responsible behavior may offer a more balanced approach.

Custodial accounts offer a flexible way for adults to manage investments on behalf of minors, allowing the assets to legally belong to the child while controlled by a custodian until adulthood. These accounts support various asset types and provide tax benefits but come with considerations regarding control and financial aid impact.

Family business owners benefit from having both an estate plan and a succession plan to ensure a smooth transition of assets and leadership. These strategies help preserve wealth, minimize taxes, and reduce potential conflicts among heirs, while supporting the financial needs of both generations.

Being named an executor of an estate is a significant honor, but it comes with complex legal and financial responsibilities. From securing death certificates and managing probate to settling debts, filing taxes, and distributing assets, the role demands careful organization and clear communication with beneficiaries. Executors must act as fiduciaries, often over the course of a year or more, ensuring every step is handled prudently and transparently.

POD and TOD accounts offer a fast and simple way to transfer assets directly to beneficiaries, bypassing probate. However, they can unintentionally override your will, create unequal distributions, and lack flexibility for more complex estate planning needs.

A living trust, also known as a revocable trust, is a legal tool that allows individuals to manage and distribute their assets during their lifetime and after death, often avoiding probate and ensuring privacy. While it requires more setup than a will, it offers flexibility, control, and continuity, especially in cases of incapacity. Including a living trust in your estate plan can provide long-term peace of mind and smoother asset management.

Recent changes to federal estate tax laws, including the permanent increase of the exemption to $15 million under the OBBB Act, mean fewer families will face estate tax liability. As a result, estate planning strategies are shifting toward minimizing income taxes for heirs, especially by considering whether to gift or retain appreciating assets.

A letter of instruction is a simple yet powerful way to bring clarity, comfort, and compassion to your estate plan. It bridges the gap between legal formality and personal intention, ensuring your voice is heard.

Signed into law on July 4, 2025, the Reconciliation Bill—officially titled the One Big Beautiful Bill (OBBB)—introduces sweeping changes to the U.S. tax code.