A lot of people procrastinate when it comes to estate planning because it seems a bit overwhelming, and they don’t know how to begin. In this post, we are going to share some questions you can ask yourself to start to build an estate plan outline.
What is your family dynamic?
The nature of your original estate plan will be impacted by your family dynamic at the time. If you are single and you have limited resources and no children, your plan will be very simple.
On the other hand, if you are married, your estate plan takes on an added level of significance. This is magnified if you have children, and estate planning becomes an absolute must at that point.
Life insurance can serve as an income replacement vehicle, and you have to account for money management for a minor child. You can establish a living trust and make the trust the beneficiary of life insurance, and you name a trustee to administer the trust after your passing.
It is also possible to use a will with a testamentary trust, but a living trust is a more comprehensive, long-term solution. When you have a living trust, you will act as the trustee while you are living, and you can amend or restate the trust if revisions are needed.
The trust will address the financial part of the equation, but you cannot name a guardian for your children in a trust, so you should designate a guardian in a simple will.
If you are an older individual without an estate plan and you decide to take action, your family situation and your priorities will be different. There are solutions for blended families, and you can take steps to make sure that your children receive their inheritances if you get remarried.
Are there special considerations?
Many people with disabilities cannot get health insurance through employers because they are unable to work. They do not have significant resources, so they qualify for Medicaid. Supplemental Security Income (SSI) is another need-based benefit that they rely on.
A direct inheritance could cause a loss of eligibility because there is a $2,000 asset limit. Under these circumstances, you can make a loved one with a disability the beneficiary of a supplemental needs trust.
They would have no access to the principal, but the trustee would be able to utilize the assets to improve their quality of life in many different ways.
You may be leaving an inheritance to someone who is not good with money, and you are concerned about reckless spending or bad investments. A revocable living trust with a spendthrift clause can provide a solution if you are in this position.
There are also incentive trusts that can be used to guide the beneficiary toward certain positive actions, and incentives can be used to steer them away from self-destructive tendencies. If you identify your concerns, we can explain your options with you come in for a consultation.
Will your estate be subject to estate taxes?
There is a federal estate tax, but it is not a factor for most people because it is only levied on the portion of an estate that exceeds the exclusion. It stands at $13.61 million at the time of this writing in 2024, and the maximum rate is 40 percent.
The estate tax exclusion is portable, which means that a surviving spouse could use the exclusion that was earmarked for their deceased spouse. In addition, there is an unlimited marital deduction, so you can transfer any amount of property to your spouse free of the estate tax.
You’re not necessarily out of the woods if your wealth does not exceed $13.61 million. This figure is in place because of a provision in the Tax Cuts and Jobs Act that was enacted in 2017. Before it was signed into law, the exclusion was $5.49 million.
On New Year’s Day in 2026, this provision will sunset or expire. At that time, the exclusion will revert to the $5.49 million level with an adjustment to account for inflation.
Aside from the federal estate tax that is applicable in every state, there are a dozen states with state-level estate taxes. We practice in South Carolina, and there is no estate tax specific to our state.
However, if you own valuable property in a state with an estate tax, it would apply to your estate if its value exceeds the exclusion in that state. You should definitely look into this possibility if you own property out of state.
Who will manage your affairs in the event of your incapacity?
Unfortunately, over 30 percent of people who are 85 years of age and older contract Alzheimer’s disease, and there are other causes of incapacity. Your plan should address this possibility, and a durable power of attorney for property will be part of your incapacity plan.
This document is used to give someone the ability to manage your financial affairs. If you have a living trust, you can empower the successor trustee to fill the role if you become incapacitated.
A living will is an advance directive for health care that is used to state your life support preferences. You can add a durable power of attorney for health care to name someone to make medical decisions on your behalf that are not related to life support utilization.
You should also have a HIPAA release which will give the health care agent the legal right to review your medical records and speak freely with your doctors.
Access our estate planning worksheet!
We have shared some food for thought in this post that should give you some ideas about the estate planning process. To take the next step, download our estate planning worksheet. It is being offered free of charge, and you can visit our worksheet access page and scroll down to get your copy.
Need help now?
Our doors are open if you are ready to work with an attorney to put a plan in place. You can schedule a consultation at our Bluffton, SC estate planning office if you call us at 843-815-8580. There is also a contact form on this site you can fill out if you would rather send us a message.
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- How Long Will My Heirs Have to Wait for Their Inheritances? - July 15, 2026
