By Morgan A. Lambert, Estate, Trust & Wealth Transfer

Considering your incapacity or death can feel overwhelming, but thoughtful estate planning can provide peace of mind and ensure your goals are carried out.

Thoughtful estate planning often involves more than simply a will. Consider the following mechanisms and topics as you plan for the future.  

General Durable Power of Attorney

A Power of Attorney (“POA”) allows you to name agents to act on your behalf in relation to your financial and legal affairs. This includes accessing bank accounts, signing contracts, acquiring or selling real estate, and paying bills. This authority can also be expanded to powers such as making family gifts. A POA takes effect upon endorsement and remains valid until revoked or your death.   

Advance Directive for Health Care

An Advance Directive for Health Care is used to (i) name agents that, upon your incapacity, are authorized to make decisions related to your healthcare;  (ii) detail your instructions in relation to end of life care (such as life support) and anatomical gifts; and (iii) names individuals authorized to access your healthcare information under HIPPA. Advance Directives are effective in the event of your incapacity and remain valid until revoked or your death.

Revocable Trust

A revocable trust allows you (the Grantor) to transfer title of your assets into a trust while retaining control over those assets during life and specifying how they will be distributed upon death. The following are a few key benefits of a revocable trust:

• Flexibility. Revocable trusts can be modified or revoked anytime before the death of the Grantor. The trust can be adapted as circumstances evolve to reflect changes in financial situations, family dynamics, and preferences.
• Adaptability. In addition to outright distributions upon the death of the Grantor, assets can remain in trust and be distributed in accordance with terms that best suit the Grantor’s circumstances. For example, the Grantor may detail that assets remain in trust until their children reach a certain age or remain in trust in perpetuity for the benefit of the Grantor’s family.
• Control. The Grantor retains complete control during life over the assets placed in the trust and thus can manage their assets as needed (i.e. buy, sell, transfer, etc.)
• Avoidance of Probate. Assets placed in a revocable trust are owned by the trust, not the individual, and thus are not subject to the probate process upon death. This allows for the private distribution of assets, as the probate process is public record, and eliminates the cost and administrative burden associated with probate.
• Management of Assets. Upon the incapacity or death of the Grantor, the trustee can immediately take over management, preservation, and distribution of trust assets without delay.

Tax Planning

The 2025 federal gift and estate tax exemption amount is $13,990,000 per person ($27,980,000 for a married couple). Accordingly, for individuals that die in 2025, if the total value of their estate falls below this amount (reduced by gifts made during their lifetime in excess of the $19,000 annual exemption), their estate will not owe federal estate taxes. However, the Tax Cuts and Jobs Act is slated to sunset which means these exemptions will return to their 2017 values, as adjusted for inflation (around $7 million per person). To avoid this, lawmakers will need to alter the limit prior to December 31, 2025. Careful estate planning can allow you to take advantage of available exemptions and work to avoid unnecessary tax liability. 

Morgan Lambert is a trusts and estates attorney at Kaufman & Canoles. She focuses her practice on trusts and estates, as well as transfer and fiduciary taxation. She helps clients navigate the complex intersection of family succession and tax planning to develop thoughtful and efficient estate plans. In addition to estate planning, Morgan assists clients and their families with probate and estate administration, as well as the administration, modification, and termination of trusts. She can be reached at 757-624-3117 or morgan.lambert@kaufcan.com.

The contents of this publication are intended for general information only and should not be construed as legal advice or a legal opinion on specific facts and circumstances. Copyright 2025.