For many of us, when we think of an Estate Planning attorney, there is this limiting belief that these attorneys only serve the purpose of writing and drafting wills. This is similar to those who share the idea that life insurance is only for people who are sick and/or dying. But here's what the wealthy don't tell you: assets are one of the foundational requirements to not only gain wealth, but also create generational wealth.
So what is an Estate Planning attorney? An estate planning attorney is a lawyer who helps individuals organize the management, protection, and transfer of their assets during life, in the event of incapacity, and after death. Their goal is to decide who inherits property, avoid unnecessary taxes and court costs, protect beneficiaries, plan for incapacity, reduce family disputes, and overall, ensure personal wishes are legally enforceable.
Related articles: Avoiding Probate: How Rights of Survivorship Work in Real Estate
While companies like LegalZoom promise to simplify the process, users should be mindful that a DIY Will is often something that can be contested and/or thrown out if a judge rules in favor of the Petitioner. Many judges and attorneys who are hired to probate a will or contest one will almost always know when the will was done by a party and not an attorney draftsperson. The process is not as simple as a company like LegalZoom would make it seem; there are numerous questions that must be answered before a will can be drafted or a trust can be drafted and funded. If an attorney does not ask these questions, then these documents can be challenged in Surrogate's Court and do the exact opposite of what they were initially intended to do: save on legal fees and skip the probate process altogether.
Wealthy families typically hire estate planning attorneys early in their careers. It is not because they know they're going to be millionaires, but because they understand one simple rule: success is measured beyond income, and so, it's not about what is in your bank account; it's about what you've accumulated over time. That is wealth, that is strategy, that is smart. High-net-worth individuals are not just evading taxes; they are also protecting their wealth and investments from creditors. Remember that phrase, buy, borrow, die? Well, if you're ever wondering how the wealthy can remain that way while just going through life borrowing against their assets, the answer is trusts, which are done through an estate planning attorney.
Related articles: What Is a Life Estate Tenant? A Clear Guide to Rights, Responsibilities, and Property Control
There are multiple different types of trusts; let's break them down here:
A Revocable Living Trust is a legal arrangement that allows a person to place assets into a trust during their lifetime while retaining the ability to change, amend, or completely revoke the trust at any time. An Irrevocable Trust is a trust that generally cannot be modified or revoked once it has been established and funded. By transferring assets into an irrevocable trust, the creator relinquishes a significant degree of ownership and control over those assets.
A Children's Trust is designed to hold and manage assets for minor children or young adult beneficiaries until they reach an age or milestone specified by the trust. Rather than allowing a child to receive a large inheritance outright, the trust appoints a trustee to manage and distribute funds for the child's benefit. A Special Needs Trust is created for the benefit of a person with a disability or special needs. Its purpose is to provide financial support without unnecessarily jeopardizing the beneficiary's eligibility for certain government assistance programs. The Trustee can use trust funds to pay expenses that improve the beneficiary's quality of life, such as therapists, education, transportation, recreation, or specialized care.
Related articles: How High-Net-Worth Individuals Approach Marriage Differently
"With many of our clients trusting us with the care of their loved ones, we understand that families are planning not only for today, but for the future. A Special Needs Trust has shown itself to be a valuable tool for helping ensure that individuals with disabilities have access to the personalized care, support services, and opportunities that Norient offers." — Norient Community Services CEO, Jevasia Stephenson.
Lastly, a Charitable Trust is a trust established to support charitable causes while also accomplishing estate planning, tax planning, and philanthropy goals. Depending on the structure, a charitable trust may provide income to the creator or family members for a period of time before the remaining assets are transferred to charitable organizations. In other cases, the charity may receive the benefits first, with the remaining assets eventually passing to family members.
Related articles: How High-Income Earners Restructure Their Finances After a Major Life Change
LIFE INSURANCE
Can Life Insurance be an asset? This depends on the type of life insurance because it will have to be permanent in order to be considered an asset. Permanent life insurance is usually whole life insurance, universal life insurance, or variable life insurance. These accumulate cash value over time, and because the policyholder owns this cash value, it is considered an asset. Wealthy people use this to their advantage; they either borrow against it or, when a loved one dies, they use it to pay off any outstanding debt or, in many cases, buy real estate, which can be a head start for many families who never owned property before. Life insurance proceeds can create an inheritance for heirs that may be larger than the premiums paid.
Life insurance as a whole is unique because it can function as both protection and an asset. While term life insurance primarily provides a death benefit, certain permanent life insurance policies accumulate cash value that can be used in the future. If this is a route you wish to take, be mindful of the fact that cash value takes time to build. Much like Norient's Service Bank, it requires an initial two-year vesting period, which some may not find feasible.
All in all, estate planning is less about how much money someone has. It is about ensuring that the people, property, and decisions that matter most are handled according to their wishes. Now, contesting a will or trust are topics we will discuss in a different article.
Ashley Morton writes on real estate, focusing on high-value markets, investment strategy, and the evolving definition of luxury living. Her work examines how property, design, and location intersect to shape both personal lifestyle and long-term asset growth.
