Estate Planning 101 [On-Demand Webinar]

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Elena Davalos (Wealth Transfer Advisor, Atlanta Office):
Welcome to today’s Savant Live webinar on Estate Planning 101. Thank you so much for joining us. If you’re new to estate planning and don’t know where to begin, this is a great first step. We hope to share practical strategies and help you understand the common terms used in this field.

My name is Elena Davalos, and I’m a Wealth Transfer Advisor in our Atlanta office. Joining me today is Dominic Pillo.

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Dominic Pillo (Wealth Transfer Team, Manassas, VA):
Hi, Elena—thanks for having me again. Like Elena mentioned, I’m Dom Pillo, and I work with her on our Wealth Transfer Team at Savant, which is our internal estate planning group. We’ve done many webinars on this topic, and we’ve found that estate planning is both fascinating and essential. Today we’ll cover:

1. What is estate planning? Broad definitions and importance

2. Key documents: Powers of attorney, living wills, wills, and revocable trusts

3. How property passes at death: Titling, beneficiary designations, probate vs. non-probate transfers

4. Communicating your plan: Tips for discussing your wishes with loved ones

5. Probate overview: What it involves and how it works

6. Taxes: Estate and income tax considerations

7. Q&A

Let’s dive in.

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1. What Is Estate Planning?

Dominic: A quick trivia question to start: What did Abraham Lincoln and Jimi Hendrix have in common?
Elena: I have no idea—what is it?
Dominic: Neither had a written estate plan when they died. It’s a reminder that fame or sophistication doesn’t exempt any of us. Everyone needs a plan—you just don’t know when you’ll need it.

Elena: Estate planning is the process of:

• Deciding who will receive your assets and who will manage them if you can’t

• Minimizing taxes, legal fees, and administrative burdens

• Providing protections for loved ones—minor children or beneficiaries who may need guidance

Even if you haven’t executed documents, state intestacy laws create a “default plan” that often doesn’t match your wishes.

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2. Who Needs an Estate Plan—and When to Review It

Elena: Everyone needs one. We recommend:

• Review every 3–5 years as a rule of thumb

• Also review after major life events (marriage, divorce, birth of a child, large changes in net worth, death of a spouse, etc.)

• Keep an eye on changes to state laws, estate tax exemptions, and income tax rules

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3. Key Documents

A. Powers of Attorney & Advanced Directives

1. Durable Power of Attorney for Property

   • Appoints an agent to handle financial decisions if you’re incapacitated

   • You can grant “superpowers” (e.g., gifting, changing beneficiaries) if needed

   • Effective immediately (preferred) or “springing” upon physician certification

2. Health Care Power of Attorney + Living Will / Advance Directive

   • Appoints an agent to make medical decisions if you can’t

   • Living will specifies end-of-life wishes (e.g., artificial nutrition/hydration)

Tips:

• Name multiple successor agents

• Decide whether the document is immediate or springing

• Review periodically as relationships and circumstances change

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B. Last Will & Testament

• Only takes effect at death. It never governs assets during your lifetime.

• A will names:

  • Executor (Personal Representative): Administers your probate estate

  • Guardian for minor children (if applicable)

  • Trustee for any testamentary (will-created) trusts

• What your will controls: Assets in your name alone, without joint ownership or beneficiary designations

• Distributions: You can make specific gifts (e.g., $50,000 to each niece/nephew), percentage gifts (e.g., 10% to charity), or a combination

• Personal property memorandum: Many states let you distribute items like furniture or jewelry by separate list

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C. Revocable Living Trust (RLT)

• Can be changed by you during your lifetime

• Avoids probate for assets you transfer into it

• Typical structure:

  • You as grantor, trustee, and initial beneficiary

  • Successor trustees (e.g., spouse, adult child) step in upon your incapacity or death

  • At your death, it may split into:

    1. A spousal trust

    2. Children’s trusts (descendant trusts)

Considerations:

• Funding the trust: Real estate deeds, retitling brokerage accounts, TOD/POD designations

• Costs: More expensive upfront, but can save time and money later

• Taxes:

  • During life, uses your Social Security number—no separate filings

  • At death, the trust may need an EIN; sub-trusts file Form 1041 annually

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4. Choosing Your Fiduciaries

• Agents (POA, health care)

• Executors (will)

• Trustees (RLT)

• Guardians (minor children under a will)

• Successor trustees (in trust document)

Advice:

• If you’re stuck, start by identifying who you wouldn’t want

• Pick people who know when to seek help (attorney, CPA) rather than purely the most financially savvy

• You can name the same person in multiple roles or corporate fiduciaries if no suitable individual

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5. How Property Passes at Death

• Lifetime gifts: Outside your estate (but can affect gift-tax exemption)

• Beneficiary designations: 401(k), IRA, life insurance pass directly on death

• Joint ownership:

  • Joint tenants with rights of survivorship (JTWROS): Pass automatically

  • Tenants in common: Do not pass automatically

• TOD/POD accounts: Brokerage (TOD) and bank accounts (POD) pass automatically to named payees

• Will: Controls only assets in your sole name, no beneficiary designations, no joint ownership

• Trust: Controls only assets you funded into it

Coordinating all these transfer methods is crucial to avoid unintended probate.

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6. Communicating Your Plan & Staying Organized

• Provide your executor/trustee with:

  • A list of professionals (advisor, attorney, CPA, insurance agent) and their contact info

  • Locations of original documents (safety deposit box, attorney’s office)

  • A clear inventory of assets and account details

• Keeping a “trail of breadcrumbs” lightens the administrative burden and reduces family stress

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7. Probate Overview (30,000-foot view)

1. Filing the will (if any) with the court

2. Court issues letters testamentary (authority to the executor)

3. Executor duties:

   • Collect assets

   • Notify creditors

   • Pay debts, expenses, taxes (including final income tax returns)

   • Distribute the residue to beneficiaries

4. Closing the estate: Releases the executor from further liability

Note: If assets are all non-probate (trust, beneficiary designations, joint), probate may not be required.

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8. Taxes

• Federal estate tax:

  • Current exemption is $15 million per individual (indexed for inflation, permanent under recent law)

  • Most families will not owe federal estate tax

• State estate/inheritance tax:

  • Many states impose their own tax with much lower exemptions (e.g., Illinois: $4 million)

• Income taxes:

  • IRAs/retirement accounts: taxed on distributions by beneficiaries

  • Brokerage accounts: receive a stepped-up cost basis at death, minimizing capital gains

  • Estate (Form 1041) and trust returns (Form 1041) may be required after death

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Q&A (Selected Questions)

Q1: Do I need a will if I have a trust?
Elena: Yes—most trusts are accompanied by a “pour-over” will, which directs any assets left out of the trust into it upon your death.

Q2: I’m named as executor in my parents’ will. Do I have to serve?
Dominic: No. You can decline or resign if you’re unable or unwilling to serve. If there’s no probate estate, there may be nothing for you to do.

Q3: What does an estate plan cost?
Elena & Dominic: It varies widely—trust-based plans generally cost more than simple wills. Think of it as “pay now or pay more later.” A well-crafted plan avoids expensive, time-consuming problems down the road.

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Thank you all for your time today. If you’d like to discuss your unique situation, please schedule a complimentary 15-minute call by clicking the link in the chat.

If you enjoyed this webinar, visit savantwealth.com/guides to download free guidebooks, checklists, and other useful financial resources.

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