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 the Nevada Wealth Fortress DAPT

At the pinnacle of estate planning, Level 3 elevates your approach by incorporating the Nevada Wealth Fortress DAPT—a cutting-edge strategy that combines unparalleled asset protection with sophisticated wealth management tools. This level is perfect for those who have built substantial assets and want to ensure they are not only safeguarded but also positioned for maximum growth and efficiency.

Tax Benefits of the Nevada Wealth Fortress DAPT

The Nevada Wealth Fortress DAPT is built to maximize tax efficiency, helping you reduce your tax burden and accelerate wealth accumulation. Here’s how it works:

• Tax Deferral: Postpone taxes on significant income or gains, allowing your assets to grow pre-tax for years. For example, a $1 million business sale could defer $283,500+ in taxes, letting the full amount compound at 7% to ~$1.97 million in 10 years, compared to ~$1.45 million if taxed upfront.

• No Nevada State Income Tax: Unlike Utah’s 4.55% flat tax, Nevada imposes no state income tax on trust income. For a trust earning $100,000 annually, this saves $4,550 per year, compounding to ~$60,000 over 10 years.

• Enhanced Charitable Deductions: The trust allows unlimited deductions for charitable contributions (e.g., 10-30% of trust income for tithing), reducing federal taxes significantly beyond personal limits (60% of AGI). This can lower the trust’s effective tax rate to 20-25%, compared to your personal rate of up to 45.95% (37% federal + 3.8% NIIT + 4.55% Utah).

• Flexible Tax Strategies: The trust offers options to shift income to lower-tax-bracket family members or adjust its tax status in low-income years (e.g., retirement), potentially saving an additional 10-15% on taxes. These benefits, compliant with IRS rules (e.g., IRC Section 641), can increase your net worth by 15-25% over 10-15 years, as shown in client scenarios like a $500,000 earner growing their wealth to ~$4.8 million vs. ~$3.98 million without the trust.

Who It’s For

The Nevada Wealth Fortress DAPT is tailored for high-income individuals and families with specific financial profiles and goals:

• High Earners in the 24%+ Federal Tax Bracket: Those with gross incomes of ~$230,000+ (married filing jointly, 24% bracket) or ~$414,000+ (32%+ bracket), where marginal rates (including 4.55% Utah tax) hit 28.55-45.95%. The trust’s tax deferral and deductions shine here, saving $50,000-$200,000+ over a decade.

• Business Owners with Appreciated Assets: Entrepreneurs with businesses, rental properties, or investments worth $1 million+, seeking to defer capital gains taxes (up to 28.35% in Utah) while protecting assets from business risks.

• Professionals with Lawsuit Exposure: Doctors, dentists, attorneys, or executives facing malpractice or liability risks, needing a shield for savings and investments. For example, a doctor with $2 million in assets can protect them fully after Nevada’s 2-year creditor bar (NRS 166.170).

• Families Prioritizing Charitable Giving: Especially Utah residents who tithe (e.g., 10% to the Church of Jesus Christ of Latter-Day Saints), benefiting from the trust’s unlimited charitable deductions to reduce taxes while supporting their values.

• High-Net-Worth Individuals ($1M+ Estates): Those with significant wealth wanting to avoid probate, streamline succession, and ensure assets pass to heirs securely.

• Utah Residents Seeking Tax Advantages: The trust’s Nevada situs avoids Utah’s 4.55% tax, adding 3-5% to long-term wealth without requiring relocation.

Why It Matters

• Unmatched Protection: Nevada’s laws offer one of the strongest shields against lawsuits, creditors, and other threats, safeguarding your wealth for you and your heirs.

• Tax Savings and Growth: By deferring taxes, eliminating state taxes, and maximizing deductions, the trust can significantly boost your financial future. For instance, deferring $100,000 annual income for 5 years could yield ~$820,000 in 10 years vs. ~$580,000 personally—a $240,000 difference.

• Legacy Building: Ensures your wealth supports your family and causes long-term, with flexible provisions for health, education, and support needs.

• Compliance and Confidence: Structured to meet IRS standards, ensuring your strategy is secure and transparent.

👉 Learn more: The Nevada Wealth Fortress DAPT

Ready to Build Your Estate Plan?

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.