Adding Toppings to Your Clients' Estate Plans
Most clients start with a "vanilla" estate plan to cover the essentials. They can then add
"toppings" such as inheritance timing and conditions or charitable components that turn a basic
plan into one that is made to order for them.
However, before opening up the whole menu of estate plan toppings, advisors may first want to
present a few flavor options.
Start with a standard scoop or two, such as a will or revocable living trust, before piling on the
toppings. Drizzle on a trust provision, sprinkle specific instructions in their will, and your client
will be well on their way to a signature dessert.
What Advisors Can Learn from the Trends
We all scream for . . . hot fudge?
Maybe not all of us, but that is America's favorite ice cream topping, preferred by 35 percent of
people, according to the International Dairy Foods Association.1 Rounding out the top three are
whipped cream and caramel sauce.2
There is also a growing appetite for artisanal toppings (think small-batch chocolates or housemade sauces), driven by a demand for premium ice cream and more indulgent, elevated dessert experiences.3 This trend reflects a broader consumer shift toward personalization and
control. Diners are increasingly looking for tailored, curated experiences in their main dishes
and their dessert bowls.
Companies such as Baskin-Robbins have leaned into playful personality mapping, linking
flavors to traits: vanilla with idealism and impulsiveness, chocolate with charm and drama, and
strawberry with tolerance and introversion.4
Smucker's did the same with toppings: hot fudge fans are confident and optimistic, nut lovers
are traditionalists, and those who favor sprinkles are bold and vivacious.5
Lighthearted and unscientific as these comparisons are, they offer a fun entry point for talking
with clients about estate planning. Drawing parallels between personality and planning
preferences - between topping choices and estate plan provisions - can spark meaningful
conversations. Even simple decisions such as how to top a sundae reflect a growing desire for
agency and self-expression.
Today's consumer is paradoxical. They are informed and empowered yet often overwhelmed.
They want control, but they also crave curation and guidance.
Modern estate plans are almost infinitely customizable. But with so many tools and provisions to
choose from, clients can feel like someone staring at a giant sundae bar, unsure how to build
the right combination.
This is where advisors come in. With the right framing, you can help clients sort through the
many estate planning extras available to them - timing, structure, charitable giving, and more -
to create a plan that is as customized, satisfying, and unique as their favorite sundae.
Timing Inheritances: Adding Toppings at the Right Time
The temperature of hot fudge or caramel needs to suit the type of ice cream to create the
perfect treat. Too hot on delicate soft serve, and the ice cream melts too fast; too cold on dense
gelato, and it will not spread well. Timing matters.
In estate planning, the type of ice cream is analogous to the type of beneficiary, which is based
on the beneficiary's age, maturity, and readiness to handle an inheritance. Advisors help clients
tailor the timing of inheritance distributions so they occur when beneficiaries can best handle
them, like adding toppings at just the right time and temperature.
- Immediately. For mature beneficiaries ready to manage wealth, a warm drizzle of hot fudge
can satisfy their sweet tooth right away.
- At certain ages. For younger loved ones, staggered distributions at, say, ages 25, 30, and
35 are like waiting for warm toppings to cool off enough to flow smoothly and steadily.
- After milestones. Distributions tied to key life events such as graduating from college or
buying a home are like the ice cream sundae you might promise a child as a reward for
specific accomplishments.
How Beneficiaries Inherit: Serve It Their Way
The best pairings take into consideration not only the type of ice cream (i.e., the beneficiary),
but also the container (i.e., the trust structure). Americans tend to prefer bowls or waffle cones;
only 1 in 10 says eating it straight out of the carton is their favorite consumption method.6 Others
prefer a sugar cone, waffle bowl, or cake cone, which could be compared to how beneficiaries
have their inheritances served up.7
- Right to use property owned by a trust. Families often share dessert. And they can also
share property. Like a banana split meant for two (or more), certain assets can be held in
trust and shared among beneficiaries. This approach allows multiple people to enjoy the
benefit of a valuable asset such as a family home or vacation property without requiring an
outright distribution, preserving the treat while still letting everyone have a taste.
- Having their expenses paid by a trust. Parents might promise their kids ice cream, but
that does not mean that they can order all of the toppings and fixings they want. A trust can
be designed to cover key expenses such as education, healthcare, or living costs rather
than anything the beneficiary desires. It is a way to sweeten the deal and treat beneficiaries
within limits.
Charitable Giving: Sweet Ways to Give Back
Some find that the sweetest part of their estate plan is what they give away. Charitable giving
can be the cherry on top of an estate plan that ties it all together.
- Outright gift. An outright bequest to a charity is simple, direct, and impactful, like adding
whipped cream to deliver an immediate burst of sweetness right off the top.
- Creating an endowment. Comparable to a sundae with layered toppings, an endowment
provides perpetual funding or "lasting flavor" over a longer period.
- Creating a foundation. A foundation is the signature topping bar of charitable giving, letting
you mix and match gifts to support any cause or occasion. Stick with the classic favorites or
get creative with more specialized offerings.
Host an Ice Cream Social with Your Clients This Summer
An estate plan helps clients feel empowered and in control. However, too many "toppings" can
turn choice into confusion.
Advisors can step in and turn a fun conversation about ice cream into a meaningful one about
their client's legacy. Set up a time to talk about financial and estate planning with your client
over a scoop this summer. Nobody says no to free ice cream, especially when good advice is
sprinkled in.
Feel free to come up with your own ice cream metaphors - and to get in touch with us to discuss
ways to help clients leave a well-deserved treat for their loved ones or the charitable causes
they care deeply about.
MEREDITH | PC
4325 Windsor Centre Trail
Suite 400
Flower Mound Texas 75028
214-513-1013
This newsletter is for informational purposes only and is not intended to be construed as written advice about a Federal tax matter. Readers should consult with their own professional advisors to evaluate or pursue tax, accounting, financial, or legal planning strategies.
You have received this newsletter because I believe you will find its content valuable. Please feel free to Contact Me if you have any questions about this or any matters relating to estate planning.
