The 3 Levels of Estate Planning: From the Basics to Advanced Strategies

When most people hear the words estate planning, they think it’s something only the wealthy need to worry about. The truth is, estate planning is for everyone—not just the rich, not just the elderly, and definitely not just people with a mansion and a yacht. If you care about what happens to your family, your health, or your home, you need an estate plan.

At Cutler Riley, we believe estate planning should be simple to understand and tailored to your goals. That’s why we break it down into three clear levels, each building upon the last. Whether you’re just starting out or you’re looking to protect wealth and minimize taxes, there’s a level of estate planning that’s right for you.

Level 1: The Core Estate Plan – What Everyone Needs

Think of this as your essential foundation. Every adult should have this in place—no matter your age, income, or assets.

What’s Included

1. Last Will and Testament
   This document ensures your assets are distributed how you want and names guardians for your minor children (if you have any). Without a Will, the state decides these things for you—and the results may not be what you’d choose.

2. Revocable Living Trust
   A Revocable Trust keeps your estate out of probate court. That means your family avoids delays, court fees, and public proceedings. You remain in control of your assets while you’re alive and well, but if something happens, your trustee can step in seamlessly.

3. Durable Power of Attorney
   This allows someone you trust to manage your finances and handle legal matters if you’re incapacitated. Without it, your family may need to go to court just to access your bank account or pay your bills.

4. Health Care Directive (a.k.a. Living Will + Medical Power of Attorney)
   This ensures someone can make medical decisions on your behalf if you’re in a coma or otherwise unable. It also spells out your wishes for end-of-life care.

Why It Matters

• Keeps your family out of court and conflict.

• Ensures your children are cared for by the right people.

• Puts someone in charge if you become incapacitated.

• Allows your wishes to be carried out privately and efficiently.

Who It’s For

Everyone. Whether you're 25 or 75, single or married, a parent or not—this is the minimum plan every adult should have in place.

👉 Learn more: Everything You Need to Know About Wills, Trusts, and Estate Plans

Level 2: Estate Planning with Asset Protection

Once your core plan is in place, the next level is about protecting what you’ve built. This is especially important for professionals with a higher risk of being sued—or anyone who simply wants to sleep better at night knowing their home and savings are shielded from lawsuits.

What’s Added: The Domestic Asset Protection Trust (DAPT)

This is a special type of irrevocable trust that holds your key personal assets—like your home, savings, or investment accounts—and shields them from future lawsuits or creditors. Unlike some trusts, you can still benefit from the assets inside the trust (e.g., live in your home or use the funds) while enjoying protection.

Utah law is one of the most favorable in the country for these types of trusts, making this strategy especially powerful for Utah residents.

Why It Matters

• Keeps your personal assets safe, even if you're sued professionally.

• Gives you peace of mind in a litigious world.

• Still allows you to access your assets while protecting them from threats.

Who It’s For

• Doctors, dentists, and other healthcare professionals

• Lawyers and accountants

• Business owners and landlords

• Police officers, first responders, and public servants

• Anyone concerned about protecting their home and legacy

👉 Learn more: Utah Asset Protection Trusts Explained

Level 3: Advanced Estate Planning with Tax Strategy

Once your estate plan is built and protected, the third level adds a powerful toolset for those who want to reduce or defer taxes—not just now, but for future generations.

What’s Added: The Summit Trust

This is a special-purpose trust designed to combine asset protection with tax planning. It’s ideal for people with large estates, high incomes (from sources other than W2 jobs), or who are planning a business sale or inheritance.

What It Can Help With

• Deferring or reducing capital gains taxes when selling highly appreciated assets (e.g., stock, crypto, real estate, businesses).

• Reducing income taxes on non-W2 income like rental income, dividends, royalties, etc.

• Minimizing estate taxes for those with large estates looking to pass more wealth to the next generation.

• Keeping income-producing assets in a structure that defers taxation at the beneficiary level.

The Summit Trust is complex, but when used correctly, it can create massive tax savings while maintaining legal compliance and full protection.

Why It Matters

• You keep more of what you earn.

• You preserve your wealth for your family instead of losing it to taxes.

• You can structure multi-generational wealth more strategically.

Who It’s For

• High net worth individuals or families

• People selling a business or appreciated real estate

• Professionals with significant passive income

• Anyone facing large capital gains

👉 Learn more: Summit Trust: Asset Protection + Tax Deferral

Which Level Is Right for You?

Every estate plan should start with Level 1—the Core Estate Plan. It’s the foundation that protects your loved ones and avoids unnecessary court battles.

From there, you can build:

• Level 2, if you want peace of mind that your home and savings are protected from lawsuits.

• Level 3, if you’re ready to reduce taxes, preserve wealth, and create a legacy.

At Cutler Riley, we’ll help you find the right level for your life, your family, and your goals. We’re not here to sell you more than you need—but we’ll make sure you have exactly what you need to protect your future.

Ready to Take the First Step?

Schedule a free 30-minute consultation and find out what level of estate planning is right for you. We’ll walk you through your options and answer all your questions—no pressure, just clarity.