How A Certified Financial Planner Can Help Plan Your Estate for a Lasting Inheritance

Only 32% of U.S. adults have an estate plan in 2024, and over half (55%) have no estate documents at all. A certified financial planner (CFP®) may help coordinate your financial picture and potentially support inheritance planning through various strategies and wealth transfer considerations. While estate attorneys handle legal documents like wills and trusts, financial advisors like Daner Wealth Management work alongside these professionals to help evaluate financial components that may affect inheritance outcomes.

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For corporate executives and business owners in Alpharetta and nearby areas, estate planning may involve more than drafting documents. Your equity compensation, retirement accounts, business interests, and investment portfolios may benefit from specialized strategies that could help address tax considerations and wealth preservation across generations. Our approach considers both the financial and legal aspects of legacy planning.

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For more than 30 years, we have worked with Alpharetta-area professionals on estate and inheritance considerations, coordinating financial planning with estate attorneys. As a certified financial planner, Daner Wealth Management coordinates with estate attorneys to help create plans that could support your family's financial future while reflecting your values and goals.

Why Wealthy Families Work with Financial Planners for Estate Planning

Financial planning often includes estate planning as one component of a broader approach to preserving wealth. Many families only focus on wills and trusts. They don't think about how their money choices affect what their family actually receives.

Take, for example, a corporate executive in Alpharetta with a 401(k), RSUs, stock options, and real estate. They’ve worked with an attorney to create a will and trust, but haven’t aligned those documents with their broader financial picture. Without coordinated planning, there’s a risk of missed tax strategies, outdated beneficiary designations, or liquidity gaps for heirs.

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Executives with big 401(k) accounts, stock options, and real estate need money strategies that work with their legal documents. Daner Wealth Management’s financial planning services can help with these complex situations.

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The key is understanding how your money decisions today affect what your family inherits. Retirement accounts, investment gains, business planning, and insurance all need expert help to work with your legal papers.

How Does a Financial Planner Help with Estate Planning?

A financial planner may help with estate planning by evaluating asset allocation, considering tax implications, and exploring wealth transfer strategies that could complement legal documents. Studies show that households with comprehensive financial plans report higher confidence in retirement and leave better-prepared heirs. Our role focuses on the financial considerations that may affect inheritance planning.

Asset Evaluation and Tax Considerations

We analyze your financial situation to explore potentially tax-efficient inheritance strategies. Retirement account beneficiary planning, for instance, may help extend tax-deferred growth when structured appropriately. We help clients understand required minimum distribution implications, potential Roth conversion opportunities, and beneficiary designation strategies that could support inherited wealth planning.

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For business owners, we may coordinate with estate attorneys on buy-sell agreements, succession considerations, and valuation strategies that could help support family wealth planning. Daner Wealth Management’s wealth management approach considers both lifetime financial needs and inheritance considerations.

Liquidity and Cash Flow Considerations

Estate settlements often need liquid assets for taxes, legal fees, and immediate family needs. We help clients evaluate their liquidity needs alongside long-term financial considerations in other investments. Life insurance may provide liquidity in certain estate planning situations and could help reduce the need to sell other assets.

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Some of the clients we work with include corporate professionals managing equity compensation as part of their broader estate plan. We coordinate with estate attorneys to help structure these assets for potentially favorable tax treatment and family benefit through our comprehensive financial planning approach.

Working with Estate Lawyers

Financial planners work with estate lawyers to make sure money strategies work well with legal documents. While lawyers draft wills and trusts, we help create the money plans that make these documents work better. This includes choosing beneficiaries, how you own assets, and investment strategies.

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Our clients like this team approach because it handles both the legal and money sides of estate planning. The lawyer handles legal requirements while we focus on money planning.

Investment Planning for Your Estate

How you invest during your lifetime affects what your family inherits. We help create investment plans that balance your current income needs with what you want to leave your family.

Smart Tax Planning for Investments

Different investments create different tax situations for your heirs. Municipal bonds generally provide tax-exempt income under current law and, depending on your situation, may offer tax advantages for heirs. Growth stocks in regular accounts may get favorable tax treatment for your family.

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A financial advisor may suggest tax-loss harvesting strategies that reduce your lifetime taxes while positioning investments well for inheritance. This approach looks at both current and future tax impacts.

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(Past performance doesn't guarantee future results. All investments carry risk, including loss of money.)

Where do You Keep Different Investments

Where you hold investments matters for estate planning. Retirement accounts, regular investment accounts, and Roth IRAs each work differently for inheritance. We help you evaluate the best places for different investments to help reduce taxes.

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Many clients benefit from Roth IRA conversions during lower-income years. This can create opportunities for tax-advantaged inheritance depending on your situation and applicable tax laws. These decisions work best with long-term financial planning.

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(Tax laws are complex and change. Please talk with a tax professional about your situation.)

Business Planning

Business owners need special planning for both business operations and estate planning. We work with clients to spread out concentrated business holdings while keeping control. This often involves planning for cash needs and business sale agreements.

Insurance Planning for Estate Protection

Life insurance is one option that may help provide liquidity in an estate. We work with clients to evaluate whether this approach makes sense for their specific needs and costs.

Estate Tax Liquidity and Income Replacement

Many Alpharetta families may face estate tax exposure through business interests, real estate appreciation, or investment growth. Life insurance could provide needed liquidity without forcing asset sales. We help evaluate whether exposure justifies costs, considering current exemptions and potential changes.

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Beyond estate taxes, life insurance may provide income replacement that helps protect family lifestyle and inheritance preservation. We calculate appropriate coverage levels based on family needs, existing assets, and inheritance goals.

Trust Integration

When clients establish trusts, we coordinate insurance strategies with trust structures. Irrevocable life insurance trusts (ILITs) could provide estate tax benefits while maintaining family control over proceeds. This would require coordination between financial and legal planning.

When Should I Start Estate Planning with a Financial Advisor?

Many financial professionals suggest considering estate planning with a financial advisor when your investable assets approach $1 million or when family circumstances create inheritance complexity. Earlier planning often provides more options and may support wealth transfer goals, though individual circumstances vary significantly.

Life Stage Considerations

Young executives often delay estate planning, thinking their assets don't justify attention. However, early planning may create opportunities for potentially tax-efficient growth strategies that could compound over time. Stock option considerations, retirement account optimization, and insurance strategies may work more effectively when implemented early.

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Middle-aged clients often benefit most from estate and financial planning integration. This life stage often involves peak earning years, significant asset accumulation, and family responsibilities that may justify sophisticated planning approaches.

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Pre-retirees may need estate planning that coordinates with retirement income strategies. Required minimum distributions, Social Security optimization, and healthcare planning may all affect inheritance outcomes and could benefit from integrated planning approaches. A financial planner for retirees, such as Daner Wealth Management, can provide guidance during this stage, taking into account each client’s individual circumstances.

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(Results will vary based on individual circumstances. This information should not be considered personalized advice.)

Asset Complexity and Family Situation Factors

Certain circumstances may indicate the need for professional guidance: multiple retirement accounts, business ownership, significant real estate holdings, or concentrated stock positions. Inheritance recipients may also need specialized financial planning for inherited accounts and trust distributions.

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Blended families, special needs beneficiaries, or geographic family distribution create additional considerations that may benefit from coordinated financial and estate planning approaches.

Retirement Account and Tax Considerations

Retirement accounts often represent significant family assets but may create complex inheritance tax situations. We help clients consider optimization for both lifetime income and inheritance outcomes.

Distribution Planning and Beneficiary Optimization

Traditional IRAs and 401(k)s create required minimum distributions that may affect both lifetime tax planning and inheritance strategies. Strategic Roth conversions could play a key role, potentially creating tax-free inheritance assets while managing lifetime tax consequences.

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Retirement account beneficiary designations often represent more valuable assets than wills and trusts, yet many families haven't optimized these documents. Daner Wealth Management reviews and updates designations to align with overall estate planning objectives, including stretch distribution options and contingent beneficiary planning.

Tax-Efficient Distribution Strategies

Inherited retirement accounts may create different tax situations for different beneficiary types. We help clients understand these differences and structure accounts to address tax impacts for heirs. Charitable remainder trusts, charitable lead trusts, and direct distributions may provide tax benefits while supporting philanthropic goals.

RSUs and Stock Options in Estate Planning

If you’re a corporate executive in Alpharetta with equity compensation, it’s important to understand how Restricted Stock Units (RSUs) and Stock Options may fit into your estate plan. These assets often follow different rules than traditional investments.

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Daner Wealth Management helps you evaluate how equity awards align with your overall financial and legacy goals.

Restricted Stock Units (RSUs)

RSUs are typically subject to a vesting schedule. Here's how they’re generally treated:

• Vested RSUs may be included in your taxable estate and passed to heirs.

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• Unvested RSUs are often forfeited at death, unless your employer allows posthumous vesting.

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Because each company has its own rules, we review plan documents and coordinate with estate attorneys to help assess how RSUs may affect your estate plan.

Stock Options

There are two types: Non-Qualified Stock Options (NSOs) and Incentive Stock Options (ISOs).

• NSOs: If they’re worth more than their exercise price at death, that value may be included in your estate. Whether heirs can access them depends on your employer’s plan. Some allow transfers, others don’t.

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• ISOs: These often lose their tax benefits at death and are typically treated as NSOs by beneficiaries.

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Stock options may also have a limited window for heirs to take action, making timely planning especially important.

Why This Matters

RSUs and stock options can present unique challenges in estate planning. Without coordination, they may create tax issues or expire unused. We help integrate these assets into your broader financial plan, working with your legal and tax professionals to support a more complete and informed estate plan.

Coordinating with Estate Attorneys and Tax Professionals

Inheritance planning may benefit from coordination between financial advisors, estate attorneys, and tax professionals. Daner Wealth Management works with other professionals to help deliver integrated solutions.

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Estate planning often works best when professionals collaborate. We communicate with clients' attorneys and accountants to help align financial strategies with legal objectives. This coordination becomes particularly important for complex situations involving business succession, charitable planning, or multi-generational wealth transfer.

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Estate plans may need ongoing attention as laws change and family circumstances evolve. We monitor financial aspects and coordinate updates with legal and tax professionals as needed. We also help educate family members about the financial aspects of inheritance planning.

Creating Your Legacy Planning Strategy

Effective legacy planning may integrate your values, financial goals, and family circumstances into coordinated strategies. We help clients develop approaches that could address various aspects of wealth transfer.

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Estate planning should reflect your personal values and family goals, not just tax considerations. We help clients identify priorities and structure financial strategies that support these goals. For many clients, this includes philanthropic planning that may create tax benefits while supporting important causes.

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Successful families often consider multi-generational wealth transfer. We help clients explore strategies for children while also considering grandchildren and future generations. Estate and financial plans may need regular attention to remain effective as laws, markets, and family circumstances change.

Taking Action: Your Next Steps in Estate and Financial Planning

Start your legacy planning journey by gathering your current financial information and identifying your inheritance goals and family values. This foundation enables effective planning conversations with qualified professionals.

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Begin by listing all assets, including retirement accounts, investment accounts, real estate, business interests, and insurance policies. Note current beneficiary designations and ownership structures. Consider your family goals and values, including tax considerations, family control, philanthropic interests, and asset protection priorities.

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Identify your current professional relationships and determine what additional expertise might benefit your planning approach.

Daner Wealth Management: Your Alpharetta Financial Planning Partner for Estate Success

Estate planning outcomes may benefit from coordinated financial strategies that support wealth transfer while addressing your lifetime financial security. As a financial advisor near you in Alpharetta, Daner Wealth Management brings three decades of experience helping families make these complex decisions.

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Our approach integrates investment management, tax planning, insurance strategies, and retirement planning into wealth transfer solutions. We work alongside your estate attorney to help align financial strategies with legal objectives.

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The families we typically serve have complex financial situations involving multiple income sources, significant assets, and multi-generational planning goals. If you’re interested in learning more about coordinated estate and financial planning strategies, we welcome a conversation.

Estate planning often benefits from early attention. Delays can sometimes result in less flexibility when addressing tax considerations and family goals. If your assets are growing or your family’s needs are changing, now is the time to act. Schedule your confidential consultation with Marc Daner, CFP™, ChFC®, and learn how personal financial planning may help you address what matters most to your family’s financial future. Marc has worked with Alpharetta-area families on wealth considerations for over 30 years, providing financial planning services tailored to each family's circumstances. Call us at (770) 368-6033 or email marc@danerwealth.com to schedule your consultation. Consider exploring how professional planning today might help support the inheritance vision you have for tomorrow.

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