What is Advanced Estate Planning and Why Does it Matter?

 Posted on July 26, 2025 in Estate Planning

When most people think of estate planning, they often envision a simple will, or a basic Revocable Living Trust designed to pass on assets to loved ones and avoid probate. While these tools are important, they are often not sufficient for families with estates exceeding $1.5 million, ownership in businesses, or exposure to professional liability. 

Advanced estate planning goes beyond basic probate avoidance. For high-net-worth couples and individuals, it involves more sophisticated strategies to protect significant wealth, mitigate potential risks, and ensure a seamless transfer of assets. This level of planning is essential to safeguard family wealth from threats such as lawsuits, long-term care expenses, divorce, and other financial vulnerabilities.

No matter the size of your estate, our Yorkville, IL estate planning attorney can help you create a simple or an advanced plan that protects your wishes and benefits your family long into the future. 

Understanding the Basics of Estate Planning

The fundamentals of estate planning often involve the following estate planning strategies:

• Wills direct how your assets are distributed and names guardians for minor children.

• Basic Revocable Living Trusts avoid probate, ensure privacy, and allow control over asset distribution. 

• Financial Powers of Attorney and Healthcare Directives appoint trustworthy individuals to make decisions if you become incapacitated.

Just because you need the fundamentals of estate planning taken care of does not mean taking shortcuts. At Gateville Law Firm, we offer comprehensive Living Trusts typically over seventy (70) pages in length — compared to the standard 20-page versions — designed to close gaps that could leave your estate vulnerable.

What Makes Estate Planning "Advanced"?

Advanced Estate Planning addresses challenges that basic plans do not, such as:

• Minimizing Estate and Gift Taxes – Especially in Illinois, where the estate tax exemption is only $4 million (versus $13.61 million federally in 2024)

• Asset Protection – From lawsuits, creditors, or divorcing spouses

• Blended Families or Special Needs Planning – Ensures fairness and continued eligibility for government benefits

• Business or Farm Succession – Helps smoothly transfer family-owned enterprises to the next generation

• Long-Term Care Planning – A top concern for families, especially those over age 65

Most adults who live past age 65 will require some form of long-term care during their lifetime. Without proper planning, these expenses can severely disrupt a family’s estate plan, particularly when a surviving spouse is the main beneficiary.

Sub-Trusts Within a Revocable Living Trust

Advanced estate planning often uses sub-trusts to protect beneficiaries after you pass. These specialized provisions provide:

• Divorce Protection – Assets in the sub-trust are considered separate property.

• Creditor & Lawsuit Protection – Properly drafted trusts can insulate assets from creditors or judgments.

• Long-Term Care Safeguards – Sub-trusts can include special needs provisions that help protect assets from Medicaid "spend-down" rules.

• Financial Oversight – Distributions can be staggered or supervised by a trusted third-party trustee, protecting younger or financially immature beneficiaries.

The Role of a Standalone Retirement Plan Trust ("SRPT")

A Standalone Retirement Plan Trust (SRPT), also known as a Retirement Plan Trust or IRA Trust, is a special type of trust designed to receive retirement account assets (such as IRAs, 401(k)s, and other tax-deferred retirement plans) upon the account holder’s death. Unlike a standard revocable living trust, an SRPT is created specifically to hold and manage inherited retirement assets for the benefit of one or more beneficiaries.

Key Benefits of a Standalone Retirement Plan Trust

Asset Protection

• Shields retirement accounts from creditors, divorces, and lawsuits.

• Prevents sudden lump-sum withdrawals by beneficiaries.

Control Over Distributions

• This allows you to direct how and when funds are accessed (e.g., for education, health needs).

• Helps protect against poor financial decisions or legal vulnerabilities.

Tax Efficiency

• Strategically manages the 10-year withdrawal rule under the SECURE Act.

• Allows smarter tax planning over time.

Special Needs Compatibility

• It can be structured to preserve Medicaid or SSI eligibility.

Trustee Oversight

• A responsible party can be appointed to manage and distribute funds appropriately.

Coordination with Your Broader Plan

• Keeps retirement assets separate from your Revocable Living Trust for better legal and tax protection.

The Risks of Not Having a Comprehensive Estate Plan

Most families do not fully grasp the risks they face without an estate plan until it is too late. Probate avoidance is important, but alone is not enough. Issues like long-term care costs, divorce, or lawsuits can undo a lifetime of careful saving if you do not have the right protection in place.

At Gateville Law Firm, we believe that estate planning should go beyond the basics. Not everyone needs an Advanced Estate Plan, but if you have substantial assets, business interests, or retirement accounts, you deserve a plan that protects your legacy in full. 

Call Our Kendall County, IL Advanced Estate Planning for High Net Worth Families Today 

By combining advanced estate planning with our extensive real estate title experience, Gateville Law Firm offers a unique ability to seamlessly coordinate your real estate and estate planning interests, an advantage few law firms can match.

Just like you would not go to a family doctor for a complex surgical issue, you should not rely on basic estate planning when your circumstances are more sophisticated. Most attorneys focus on simple probate avoidance. We focus on preserving wealth, protecting families, and planning for real-world risks. Contact our Yorkville, IL estate planning lawyer at 630-780-1034 for a complimentary consultation.