April 30, 2026
Complex Inheritances and Legacy Planning: Examples and Best Practices
April 30, 2026
It’s easy to think about legacy planning late in life.
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About 66% of Americans over 70 have a will. That number drops drastically the younger you get. And I get it. No one wants to think about end-of-life care. But putting off planning can create complications and leave loved ones confused, often learning about family conflict and wealth dilution.
I would say most high-income or high-net-worth individuals know they need more than a will. A trust, usually a living trust, is a common choice to protect assets. Yet, selecting the initial wealth preservation vehicle is the beginning, not the end, of the process.
Trust structure, funeral considerations, and family communication all factor into a robust legacy plan that reflects your values and desires long after your passing.
Some inheritances are simple: Assets are equally divided among children within the same city, state, or country and distributed through a trust. This process becomes more complicated the more assets you have, the more beneficiaries you consider, and the weaker an end-of-life plan is.
After decades, I’ve seen just about everything. But here are four key scenarios that can slow and confuse the inheritance process.
Many Americans choose to live outside of the United States, especially in retirement. Yet, this situation can create complexities for end-of-life planning. On an administrative level, you’ll need to consider cross-border documentation for assets and trusts. Caring also requires close attention. What will your care plan be? If your child has Power of Attorney but they live a thousand miles away, will you need a local secondary caregiver with PoA to ensure your wishes are carried out.
You may also want to consider funeral norms in your new locale and whether they mesh with your expectations.
One of the most complex ways to leave a legacy is to not have a plan that considers federal, state, and county implications regarding taxes and inheritance distribution. The last thing you want is for the wealth you worked so hard to build and preserve to dissolve once it hits probate court. Or when a loved one contests your will.
A trust is often the best bet to bypass probate and ensure that your legacy is executed faithfully.
One of the more uncomfortable aspects of legacy planning is asset allocation. And it’s not always equally divided between children or grandchildren. For example, you may:
When inheritances aren’t equally divided, it can cause friction between family members. However, it’s also important that you feel at peace with your decision. If a grandchild struggling with student loans would benefit from additional income compared to her older brother who is financially stable, that is something to consider. In most cases, family members irritated by your choices are responsible for their own emotions and reactions. What’s more important is that you feel confident in your decisions.
Communicating these plans and your rationale early on can help offset these emotional outbreaks and potential challenges to your will.
Early in retirement, you may have drafted a trust with a lawyer and closed the book on legacy planning. But things change. Inflation, rising costs of healthcare, shifting family dynamics, and other factors may cause you to want to revisit your legacy. Furthermore, you may choose to support loved ones today rather than wait until you pass. Assisting children or grandchildren in affording an education, purchasing a house, or other investments can reduce their long-term financial need in a world where cost only goes up.
In short: Review it regularly to ensure that your trust still represents your desires and values.
Inheritance planning is a very tailored process, regardless of your asset size. You’ll likely be working with a lawyer and/or financial advisor to complete your legacy plan. Here, I’ve included the top seven steps many individuals should take into account when working through this process.
Loved ones contest end-of-life plans when they don’t understand what you want or how you made your decisions. If you don’t have a plan, that further leaves family members confused regarding your wishes, creating tension and turmoil. Having a family discussion to review your legacy plan can reduce stress and improve family bonds.
It’s important to review your legacy regularly. Ideally, you'll want to reassess every one or two years.
If you don’t have a trust, it’s important to convert any planning you have into a living trust. These vehicles give you control over your assets until your death, and ensure they are likely to avoid probate or legal challenges.
Tax professionals can offer further advice in end-of-life planning regarding estate taxes, income taxes, and specific vehicles to reduce your beneficiary tax obligations.
Not everything you trust has to be about money, or even valuable family heirlooms. Consider times you have that may have sentimental value to loved ones – especially those that might cause contention if several family members would want it.
You like to have causes that you care about: Veterans, humanitarian aid, education, environmental, and so on. Consider leaving a portion of your legacy to programs you trust and admire–allow your money to make the world a better place.
Working together with a tax advisor and financial planner, you can maximize asset protection through minimizing tax liability, improve trust privacy, and optimize accessibility for inheritance. This can include strategies like providing an allowance versus a lump sum, gifting shares in place of company ownership, or creating a Grantor Retained Annuity Trust (GRAT), Domestic Asset Protection Trust (DAPT), or strategically using LLCs and strategic titling.
As a fiduciary advisor, I am legally-bound to provide objective advice. There’s no upselling, no commission, and no salesmanship. What matters most to me and my clients is that they feel heard and get honest advice, whether that is how to fund their 401(k) or how to structure their legacy plan.
If you would like a second opinion on your financial situation, please book a complimentary, no-commitment call today.
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