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A will is great for distributing property, personal belongings and bank accounts, but it is lacking in many other aspects. Modern trust planning is essential for preserving wealth and your client’s legacy. How can you explain this to them, and what type of trusts should you recommend?
A Will Is Just the Start of Estate Planning
Estate planning involves more than drafting a will. It is an in-depth process designed to safeguard a person’s legacy, preserve their assets for future generations and ensure their wishes are honored after they are gone.
People do not realize how important doing so is. In the 2025 Trust and Will Estate Planning Report, 55% of survey respondents reported having no estate documents. Thirty-one percent had only established a basic will.
A will is a safety net, not a comprehensive solution. Relying solely on it could lead to divisive family disputes, unnecessary taxes or costly litigation. Moreover, it only goes into effect after the testator’s passing, so it must pass through the lengthy probate process.
Understanding Why Clients Only Have Wills
Some exclusively use wills because they believe they will leave nothing of value behind. If they have enough assets to warrant an estate, they may think financial advisory services are too expensive. Alternatively, they may not know where to start.
Whatever their reasoning, you can help. After the estate planning attorney drafts trust documents, you step in. Your customers could see higher returns, facilitating a seamless wealth transfer and minimizing the burden on their loved ones.
Which Trusts Should You Present to Clients?
A trust helps people manage and distribute assets during their lifetime and after their passing. Unlike a will, it takes effect immediately, letting them avoid lengthy delays and preserve their privacy. Advisors can recommend:
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Revocable trust: A revocable or living trust can change after its creation. It is among the most common types of trusts since it is not subject to probate administration, but the assets remain available to creditors. Also, individuals are still responsible for tax payments and reporting.
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Irrevocable trust: An irrevocable trust cannot be changed after its creation. The assets move out of the estate, and the trust files its own tax return. It is not as flexible as a revocable trust but provides greater protection from creditors and estate taxes.
Special Types of Trusts Worth Suggesting
Numerous special types of trusts exist, including special needs, domestic asset protection, generation skipping and marital trusts. They may be worth suggesting because they offer tailored asset distribution and tax benefits:
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Irrevocable life insurance trust: An irrevocable life insurance trust sets aside the premium to pay estate taxes. It is ideal for entrepreneurs because it prevents the family business from being sold to cover expenses. Their heirs will receive the policy proceeds upon the owner’s death.
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Charitable irrevocable trust: A charitable irrevocable trust allows someone to leave a lasting philanthropic legacy while lowering their tax burden. They can set it up so a charity of their choice receives their income to start, then their primary beneficiaries get their remaining assets, or vice versa.
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Grantor retained annuity trust: A grantor-retained annuity trust lasts for some years. Someone receives regular annuity payments in exchange for contributing assets. If they are alive when the term ends, any remaining funds move to their beneficiaries gift-tax-free. If they have passed, their assets become part of the estate and are subject to estate tax.
How to Discuss Trust Planning With Clients
As an experienced professional, you can easily explain the importance of modern trust planning. Elevate the conversation from basic probate avoidance. Suggest special types of trusts and strategic asset transfers to create a sophisticated, customer-centric plan.
Consider your client’s needs before broaching the topic to ensure the conversation flows smoothly. Will they benefit from tax optimization, or is business succession more important to them? Personalization will help them see the value of trust planning.
People are getting more comfortable with robo-advisors. In the U.S., 37% of people have expressed interest in using artificial intelligence for money management. To incentivize them to use your services, explain the benefits of the human touch. AI cannot replace human expertise or creative thinking.
Ensure you clearly communicate the benefits of trust planning, including minimizing tax burdens. The 2025 State of Estate Planning Report revealed 90% of people are concerned about how estate, capital gains and income taxes will impact the assets they plan on passing to their beneficiaries.
Help Your Client Preserve Their Wealth
Building wealth is hard, but navigating reporting and tax law is also challenging. That is where you come in. Make sure your customers know investing money in your services can ensure the maximum amount of wealth is preserved. Planning can also make the process easier on their families.
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