Estate Planning Strategy Services

Yes, a financial advisor can help with estate planning strategies. While an attorney drafts legal documents, a financial advisor focuses on how your assets, accounts, and beneficiary designations align with your wealth transfer goals. This includes reviewing account titling, coordinating asset distribution, and identifying tax considerations that may affect what your heirs receive. Estate planning strategies involves trade-offs, and strategies that suit one family may not be appropriate for another.

Trust and Will Coordination

We review your existing trusts and wills alongside your financial accounts to identify gaps in asset titling or trust funding. Coordinating these elements may help ensure your assets pass according to your wishes, though legal document preparation should be handled by a qualified attorney.

Beneficiary Designation Review

Many assets transfer by beneficiary designation rather than through a will. We help review and update beneficiaries on retirement accounts, life insurance, and annuities. Outdated designations can override estate documents, so regular reviews are important. Changes may have tax implications depending on the account type and beneficiary.

Tax-Aware Wealth Transfer

We analyze how estate, gift, and income tax considerations may affect the value of assets passed to heirs. Approaches may include gifting, trust funding, or Roth conversions as part of a coordinated plan. Tax outcomes depend on individual circumstances and may change with future legislation.

Business Succession Planning

For small business owners, estate planning strategy overlaps with succession planning. We help evaluate how business interests' factor into your estate strategy, including ownership transitions, buy-sell agreements, and valuation considerations. Business succession involves legal and tax complexities that require coordination with attorneys and CPAs.

Charitable Giving Strategies

If charitable giving is part of your goals, we can help evaluate approaches such as donor-advised funds or charitable trusts within your estate plan strategy. These strategies may offer tax benefits, but contribution deductibility depends on individual tax situations and applicable limits.

Incapacity Planning

Estate planning strategy also addresses what happens if you become unable to manage your finances. We help coordinate powers of attorney and healthcare directives with your financial accounts so that designated individuals can act on your behalf. These documents must be properly executed under state law to be valid.

Wells Fargo Advisors Financial Network does not provide tax or legal advice.

Connecticut is one of a limited number of states that levies a separate estate tax. As of 2026, the Connecticut estate tax exemption is aligned with the federal estate tax basic exclusion amount at $15,000,000 per individual. Estates valued at or below this threshold may owe no Connecticut estate tax, though a return may still be required.

For estates exceeding the exemption, Connecticut applies a flat 12% estate tax rate, with a statutory cap of $15,000,000 in total estate tax per estate. The maximum federal estate tax rate on amounts above the exemption is 40%. Because the state and federal exemptions are currently aligned, some Connecticut residents may face federal estate tax exposure without a separate state liability, though this can change with future legislation.

For pre-retirees and post-retirees in Connecticut, understanding how these thresholds apply to your total estate, including retirement accounts, real estate, and business interests, may inform decisions about gifting, trust structures, and Roth conversions. Small business owners may face additional considerations if the value of business interests pushes the estate above exemption limits.

Sources: CT DRS Estate and Gift Tax Information; IRS 2026 Estate Tax Credits inflation adjustments. Figures as of August 2026.

2026 Estate Tax at a Glance

Federal Exemption: $15,000,000
CT Exemption: $15,000,000
Maximum Federal Rate: 40%
CT Estate Tax Rate: 12% flat
CT Tax Cap: $15,000,000

Exemption amounts are per individual and indexed for inflation. Married couples may potentially double the exemption with proper planning. Consult an estate planning attorney for guidance specific to your situation.

Both a financial advisor and an estate planning attorney play important roles in estate planning strategies, but their responsibilities differ. Understanding the distinction may help you build a more effective planning team.

Responsibility	Financial Advisor	Estate Planning Attorney
Drafts wills and trusts	No	Yes
Reviews beneficiary designations	Yes	May review
Analyzes tax implications of transfers	Yes	May advise
Coordinates account titling and trust funding	Yes	May advise
Provides legal representation in probate	No	Yes
Evaluates business seccession strategies	Yes	May advise

Working with both professionals may help reduce the risk of gaps between your legal documents and your financial accounts. We collaborate with your attorney and CPA to help ensure consistencyacross your plan.

Does a financial advisor help with estate planning strategies?

Yes, a financial advisor helps with estate planning strategies by coordinating your financial assets, account titling, and beneficiary designations with your overall wealth transfer goals. While an estate planning attorney drafts legal documents such as wills and trusts, the financial advisor focuses on how your investments, retirement accounts, insurance policies, and tax strategy align with those documents. This includes reviewing whether beneficiary designations on retirement accounts and life insurance match your estate planning strategy, evaluating whether trust funding is complete, and analyzing how estate, gift, and income tax considerations may affect what your heirs receive. Both a financial advisor and an estate planning attorney are typically needed for a complete estate planning strategy, and coordination between them may help reduce the risk of oversights.

What documents do I need for a complete estate planning strategy?

The five core estate planning strategy documents most individuals need are a last will and testament, a revocable living trust, a durable power of attorney, a healthcare proxy and living will, and updated beneficiary designations on retirement accounts and life insurance. A will directs how your assets are distributed after death and names a guardian for minor children. A revocable living trust can manage assets during your lifetime and after death, potentially helping beneficiaries avoid probate. A durable power of attorney authorizes someone to manage your financial affairs if you become incapacitated. A healthcare proxy and living will specify your medical preferences and designate someone to make healthcare decisions on your behalf. Beneficiary designations control who receives certain assets directly, outside of a will. Some individuals may also need additional documents such as irrevocable trusts, special needs trusts, or guardianship designations. An estate planning attorney can advise on which documents are appropriate for your specific situation.

What is the difference between a will and a trust?

A will is a legal document that directs how your assets are distributed after your death, and it typically goes through probate, a court-supervised process that validates the will and oversees distribution. A trust is a legal arrangement in which a trustee holds and manages assets for the benefit of designated beneficiaries, and it can operate during your lifetime and after your death. Assets held in a properly funded trust may avoid probate, which can reduce court costs and delay in some cases. However, trusts may involve higher upfront legal costs to establish and ongoing administration requirements. A revocable living trust can be changed or revoked during your lifetime, while an irrevocable trust generally cannot. Not everyone needs a trust, and the decision depends on factors such as estate size, family circumstances, state probate laws, and tax considerations. An estate planning attorney can help determine whether a trust is appropriate for your situation, and a financial advisor can help ensure that trust funding aligns with your financial accounts and beneficiary designations.

What is the 5 by 5 rule in estate planning strategy?

The 5 by 5 rule refers to a beneficiary's annual right to withdraw the greater of $5,000 or 5% of the trust principal from certain irrevocable trusts. This withdrawal power is commonly used in trusts designed to qualify gifts for the annual gift tax exclusion, because it gives the beneficiary a present interest in the assets rather than a future interest. The rule is a drafting provision created by the estate planning attorney, not a tax law requirement. Specific trust provisions vary depending on the trust type, the grantor's goals, and state law. If you have or are considering a trust with a 5 by 5 power, review the provisions with a qualified estate planning attorney to understand how they apply to your situation.

Who should I not name as a beneficiary?

There are several situations where naming someone directly as a beneficiary may create complications. Minors generally cannot directly inherit assets, so a guardian, custodial account, or trust may be needed to manage assets until they reach adulthood. Individuals receiving means-tested government benefits, such as Medicaid or Supplemental Security Income, may lose eligibility if they inherit directly, which is why special needs trusts are sometimes used to preserve benefits while providing supplemental support. Individuals with significant creditor issues, pending lawsuits, or substance abuse concerns may benefit from trust-based distribution rather than direct inheritance, since a trust can include provisions that control how and when distributions are made. Naming your estate as a beneficiary on retirement accounts can trigger unfavorable tax consequences in some cases. Additionally, failing to name a contingent beneficiary can create complications if the primary beneficiary predeceases you. Your estate planning attorney can advise on beneficiary selection based on your specific family situation, and a financial advisor can help review whether your designations align with your overall estate planning strategy.

When should I update my estate planning strategy?

You should review and potentially update your estate planning strategy after major life events, including marriage, divorce, birth or adoption of a child, death of a beneficiary or executor, relocation to another state, significant changes in assets or net worth, retirement, and changes in tax law. Even without a major life event, reviewing your estate planning strategy every three to five years may help ensure that your documents, beneficiary designations, and asset titling remain aligned with your current wishes. Relocating to Connecticut from another state may require updating your estate documents to comply with Connecticut-specific laws, since state probate rules, estate tax provisions, and property laws differ. Similarly, if you move out of Connecticut, your documents may need adjustment for your new state's requirements. Changes in federal or state tax law can also affect estate planning strategies, so periodic reviews with your financial advisor and estate planning attorney may help keep your plan current.

What is the difference between a revocable and irrevocable trust?

A revocable trust, also called a revocable living trust, can be changed, amended, or revoked by the grantor during their lifetime, offering flexibility but typically not removing assets from the taxable estate. An irrevocable trust generally cannot be altered once established, which means the grantor gives up control of the assets, but this may help remove those assets from the taxable estate and offer potential creditor protection. Revocable trusts are commonly used for probate avoidance and incapacity planning, while irrevocable trusts may be used for tax planning, asset protection, and charitable giving. Each type has trade-offs: revocable trusts offer flexibility but limited tax benefits, while irrevocable trusts may offer tax advantages but require giving up control. The right choice depends on your goals, asset structure, and family situation. An estate planning attorney can advise on which type is appropriate, and a financial advisor can help coordinate trust funding and alignment with your wealth plan.

What happens if you die without a will in Connecticut?

If you die without a valid will in Connecticut, your estate is distributed according to the state's intestate succession laws, which determine who inherits your assets based on family relationships. Under Connecticut intestate statutes, a surviving spouse typically receives a significant portion, with the remainder distributed to children, parents, or other relatives depending on who survives you. If no eligible relatives can be identified, assets may escheat to the state. Dying without a will also means the court appoints an administrator for your estate rather than you choosing an executor, and you lose the ability to name guardians for minor children. The probate court oversees the entire process, which may take longer and involve additional costs compared to having a valid will. Creating a will allows you to control how your assets are distributed, name your executor, and designate guardians for minor children. A financial advisor can help you coordinate your asset titling and beneficiary designations alongside your will, while an estate planning attorney handles the drafting and legal execution.