What is the difference between a basic, standard, and advanced estate plan?

Nov 6

A basic estate plan usually consists of just three documents: your Will, durable power of attorney for finances, and health care proxy. The problem with a basic estate plan is that it doesn’t allow you to avoid probate or the public court process.

In order to avoid probate, most clients get the standard estate plan, which generally consists of the above three documents, plus a revocable living trust. The revocable living trust allows you to serve as trustee so you still have full control over everything, but by transferring your real estate to the trust, you can be sure to avoid probate and unnecessary costs/delays in the administration of your estate.

The next level up from a standard estate plan is generally referred to as an advanced estate plan. The most common types of advanced estate plans generally consist of adding a separate revocable living trust to minimize estate taxes (for married couples) or an irrevocable trust for nursing home protection purposes. Some clients also add on sub-trusts if they want asset protection for their children or grandchildren in certain scenarios - for example, special needs trusts, divorce/creditor protection, or to delay/withhold distributions because of substance abuse concerns.

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