Tax

20 tips, tricks and tools to level up your estate planning game

Complimentary Access Pill
Enjoy complimentary access to top ideas and insights — selected by our editors.

Financial advisors and tax professionals likely work with many wealthy clients, though none of those customers is likely to have an estate the size of Warren Buffett's. Nevertheless, his strategies may carry applicable lessons for their estate planning.

In June, the longtime Berkshire Hathaway CEO revered as the "oracle of Omaha" announced that he will donate $6 billion in the company's stock to five foundations — which means that Buffett has now allotted 99.5% of his giant estate to philanthropic organizations. Beyond those impressive figures, Buffett's typically savvy move offers a helpful reminder to tax planners and their clients on why it's beneficial to donate stock rather than liquidating the holdings prior to contributing cash to charity, said Miklos Ringbauer, founder of Los Angeles-based MiklosCPA.

"If he sells the shares, his basis is probably super low. He will have to pay capital gains tax," Ringbauer said. "I tell my clients, if you have appreciated stock, don't sell it. Gift it."

That way, they get the charitable deduction based on the value of the stock and avoid netting capital gains as they steer assets to the nonprofit organization of their choice. 

Most advisors likely already know that strategy well. The stories below could present much more novel ideas about estate planning for their clients, as well as technology tools for their businesses.

Scroll down the slideshow for a roundup with links with further information about estate planning strategies and practice management and professional development resources for financial advisors. And click here for all of Financial Planning's estate planning coverage for financial advisors and tax professionals.

Bulk up on continuing education in sunny Arizona

A new addition to the advisor conference agenda could prove to be a profitable and pleasant getaway in January.

READ MORE: New estate planning conference aims to be yearly advisor destination

Tech tools for estate planning

An estate planning software firm aims to aid advisors in the complex calculations and data management aspects of the process.

READ MORE: FP Alpha debuts Estate Insights 2.0

Other fintech innovations and challenges

An array of fintech competitors are vying to help advisors with estate planning.

READ MORE: Advisors clamor for estate planning tools as attorneys wave red flags

An investment strategy that could help some estates' plans

The name of this investment vehicle brings a headache to the uninitiated, alongside potential savings on taxes. 

READ MORE: Using tax-aware long-short vehicles to track down alpha

Try these irrevocable trusts

These trust entities could avoid the dilemmas posed by potential changes to estate taxes.

READ MORE: 4 irrevocable trusts to beat estate tax uncertainty

Consider a charitable remainder trust

Charitable remainder trusts (CRTs), charitable remainder annuity trusts (CRATs), charitable remainder unitrusts (CRUTs) or net income charitable remainder unitrusts (NICRUTs) could fit into clients' estate plans. 

READ MORE: The tax advantages of charitable remainder trusts — and the risks

The sales pitch and risks of life insurance

It may be the most frequent sales idea in the history of financial services, but life insurance can still play a valuable role in estate planning.

READ MORE: The tax benefits of life insurance — and the risks to consider

Estate planning is organic growth in some ways

Many advisory practices seek to be multigenerational, but not all of them succeed in attracting clients' children to stay on as customers.

READ MORE: Keeping the kids: An advisor's guide to retaining next-gen clients

Invite and engage spouses

Basic demographics dictate that the industry must either speak to both partners in a couple or sustain a loss of business after the death of one spouse.

READ MORE: What the 'horizontal wealth transfer' means for RIAs

Family dynamics are dynamic

These four steps to successful estate plans give advisors the means to open the lines of communication for complicated families.

READ MORE: How advisors can reduce estate planning conflicts in 4 steps

Wills for legacy, not just financial assets

A family story is as valuable as a great estate plan … depending on the size of the estate in question, of course.

READ MORE: Ethical wills can be a crucial tool for estate planning

Conflict resolution for financial advisors

A family therapist or counselor usually works better as an analogy for an advisor's work than the typical "financial quarterback" discussed by many planners.

READ MORE: Nobody wins when family fights: How advisors reduce conflict

The estate lawsuit from Margaritaville

Even some of the wealthiest and most successful performers' estates get hit in legal tangles shortly after their deaths.

READ MORE: Jimmy Buffett's widow sues to remove trustee of $275 million estate

Kids' jobs build character, savings and estate plans

Business owner clients can reap tax savings and avoid estate taxes by employing their children.

READ MORE: The tax benefits — and complexities — for business owners hiring kids

Estate planning is a form of succession planning

This firm's succession offers a model to other RIAs seeking to be multigenerational with its base of advisors and clients.

READ MORE: How this RIA jumped two succession hurdles at once

An often overlooked threat to estate plans

Statistically speaking, diminished capacity and elder fraud likely affect many more estate plans than any tax hit.

READ MORE: How to plan ahead for diminished capacity and prevent elder abuse

Narrowing the racial will gap

Every estate plan protects one family's wealth for the next generation, and that compounds over time.

READ MORE: Fighting systemic racism with estate planning — one client at a time

Estate planning for LGBTQ clients

LGBTQ clients can use these methods to take their estates into their own hands, regardless of any Supreme Court ruling or Washington politics.

READ MORE: Financial advisors can better serve LGBTQ clients. Here's how

Tax is just one aspect

The share of estates subject to a federal estate tax is remarkably small, so most of them must address many other issues besides possible payments to Uncle Sam.

READ MORE: Clients aren't likely to face estate taxes. But they still need a plan

Free estate planning perks for customers

The value is much greater than a giveaway T-shirt or tote.

READ MORE: Fifth Third offers wills to its customers, free of charge
MORE FROM FINANCIAL PLANNING