Most retirement planning conversations people have with their financial advisor are focused on the moment of retirement.
- Am I going to be okay?
- Can I stop working when I want to?
- Can I cover healthcare costs and still have something left after 30 years?
- Will I have enough left to leave something behind?
Those are the right questions, and getting clear answers to them is what most retirement planning is built around. But there's a second conversation that gets far less attention, one that becomes relevant the moment retirement actually begins. That conversation is about what happens to what's left.
Wealth transfer planning is the process of deciding how your assets pass to the people and causes you care about after you’re gone, efficiently and according to your wishes. It applies to anyone who has accumulated assets over a lifetime, not just those with large estates.
Retirement Is the Beginning of a New Planning Chapter
Families who work with us across Central Florida typically spend decades focused on accumulating assets, saving, investing, and arriving at retirement in a solid position. What often doesn't follow is a plan for what comes next. Retirement is when wealth transfer planning becomes most relevant, because for the first time you have a clear picture of what you've built and a realistic sense of what you'll need.
Most people spend their working years asking, "Do I have enough?" Retirement is when a second question becomes just as important: "What do I want my legacy to be?" If you haven't thought through the second one until someone asks it directly, your wealth transfer planning process might be getting started later than it should.
How Florida Law Affects Wealth Transfer Planning
Florida does not impose a state estate tax, inheritance tax, state income tax, or state gift tax, which puts Orange County families in a different position than residents of most other states when it comes to passing on wealth. For retirees who relocated to Central Florida from higher-tax states like New York or Massachusetts, where state-level estate taxes can take a significant bite out of what you pass on, that decision may have already positioned your family well.
At the federal level, the estate and gift tax exemption increased to $15 million per person and $30 million for married couples in 2026. For most families in the Oakland and Winter Garden area, federal estate taxes won't apply at all. That doesn't mean planning isn't needed, it means the focus shifts from tax minimization to making sure your wealth passes to the people you intended, in the way you intended.
Start with the Basics: What Does Your Plan Actually Say?
Wealth transfer planning starts with documents many have heard of but may not have reviewed in years. A will establishes who receives your assets and who is responsible for carrying out those wishes. Without one, Florida state law decides those questions for you, and the answers may not match what you had in mind. A trust goes a step further, giving you more control over how and when assets are distributed while generally allowing your estate to bypass the public and often time-consuming probate process.
Powers of attorney are equally important, though they serve a different purpose. A durable power of attorney designates someone to make financial decisions on your behalf if you become unable to do so, and a healthcare directive does the same for medical decisions. These documents don't transfer wealth, but they protect the process of doing so if your health changes before your plan is fully in place.
Before you review those documents, check your beneficiary designations. Retirement accounts, life insurance policies, and payable-on-death accounts pass directly to whoever is named on those forms, regardless of what your will says. An outdated designation, one that still names an ex-spouse or a family member who has passed away, can override years of careful planning in ways that are difficult or impossible to correct after the fact.
Where Your Heirs Live Can Affect Your Plan
Where your heirs live can affect how much of your estate they keep. Florida has no state inheritance tax, meaning your heirs won't owe the state anything simply for receiving assets from you. If your children or grandchildren live in a state that does impose an inheritance tax, the picture can look different depending on how assets are structured and transferred.
States like Maryland, Iowa, Kentucky, Nebraska, New Jersey, and Pennsylvania have their own inheritance tax rules that can apply to beneficiaries regardless of where the deceased lived. If your children are in one of those states, factoring that into your plan early may reduce the tax burden they face. A coordinated approach between your financial advisor and an estate planning attorney can help identify and address these situations before they become a problem for your family.
Key Strategies Worth Understanding
Wealth transfer planning doesn't require a large estate. These are the strategies that come up most often in conversations with Florida retirees:
Lifetime Gifting
One of the most straightforward ways to transfer wealth is to give some of it away while you're alive. Each person can make annual exclusion gifts of $19,000 per recipient per year in 2026 without using any lifetime exemption. For a couple with several children and grandchildren, that adds up meaningfully over time, and gifting during your lifetime lets you see the impact directly, whether that means helping a child with a down payment or supporting a grandchild's education in real time.
Trusts
A revocable living trust is one of the most practical tools available to most families. It allows your estate to pass to your heirs without going through probate, which can save time and cost while keeping your affairs private. An irrevocable trust offers stronger asset protections and potential tax advantages but requires giving up some control over the assets placed in it. The right choice depends on your specific situation and goals, which is why this decision is typically made alongside an estate planning attorney.
Roth Conversions as a Transfer Tool
Roth IRAs can be effective for wealth transfer because assets grow tax-free and qualified withdrawals are also tax-free for your heirs. Converting traditional IRA assets to a Roth over time, particularly in lower-income years early in retirement, may reduce the tax burden your heirs face when they inherit those accounts. The strategy requires careful timing and coordination with your overall tax picture, so it's worth discussing with both a financial advisor and a tax professional before moving forward.
Charitable Giving
If supporting a cause matters to you, integrating charitable giving into your estate plan can accomplish more than one goal at once. Donating appreciated securities may allow you to avoid capital gains taxes while also reducing the size of your taxable estate. A donor-advised fund allows you to make a charitable contribution now, take the tax deduction in the current year, and distribute the funds to specific organizations over time. As with all tax-related strategies, outcomes depend on individual circumstances and current tax law.
The Conversation to Have with Your Family
One of the most valuable things you can do as part of wealth transfer planning has nothing to do with legal documents. It's having an open conversation with your family about your intentions. Emotions run high after a loss, and is not an ideal time for your loved ones to work through an estate plan for the first time. Confusion and disagreements among family members are more common when someone is surprised by the outcome, and an open conversation beforehand can reduce the likelihood of that happening.
There's no required format for this conversation. Some families handle it over dinner; others prefer to have it as part of a meeting with their financial advisor, where questions can be addressed in real time. The families who have this conversation tend to say they're glad they did, even when it was uncomfortable to start.
When to Start
The best time to start wealth transfer planning is before you think you need to. Documents need to be in place before a health event, not after. Beneficiary designations need to reflect your current wishes, not decisions made 20 years ago. Gifting strategies work better when there's time for them to compound, and waiting until retirement is already underway means some options may no longer be available or as effective.
For families in Oakland, Winter Garden, Windermere, Ocoee, and across Orange County, this is a conversation we have regularly at LaPorte Financial. We work with retirees and near-retirees to connect retirement income planning with what comes next, and when estate planning attorneys or tax professionals need to be part of the picture, we help coordinate that team. If your plan stops at retirement, it may not be finished. Reach out to schedule a conversation.
Frequently Asked Questions
What is wealth transfer planning and why does it matter?
Wealth transfer planning is the process of deciding how your assets pass to your heirs or chosen causes after you're gone, in a way that reflects your wishes and minimizes unnecessary costs or taxes. Without a plan, Florida state law determines who receives your assets; probate can be costly and public, and family members may face avoidable tax burdens or conflict. A plan typically covers legal documents, beneficiary designations, gifting strategies, and family communication, and works alongside your retirement income plan rather than separately from it.
Does Florida have an estate tax or inheritance tax?
Florida has neither a state estate tax nor a state inheritance tax, which makes it one of the more favorable states for passing wealth to the next generation. At the federal level, the estate and gift tax exemption is $15 million per person in 2026, meaning most Florida families won't owe federal estate taxes. That said, if your heirs live in a state that imposes its own inheritance tax, their share of your estate may be subject to those rules depending on how assets are structured. A financial advisor and estate planning attorney can help you plan around those situations.
Where do I start with wealth transfer planning?
Start by reviewing three areas: your existing legal documents, including your will, any trust, and powers of attorney; your beneficiary designations on retirement accounts and insurance policies; and your family's awareness of your intentions. Many people find that one or more of those areas hasn't been updated in years. A financial advisor can help identify the gaps and connect you with the estate planning and tax professionals needed to address them.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.
LaPorte Financial, LLC and LPL Financial do not provide legal advice or services. Please consult your legal advisor regarding your specific situation.
A Roth IRA offers tax deferral on any earnings in the account. Qualified withdrawals of earnings from the account are tax-free. Withdrawals of earnings prior to age 59 ½ or prior to the account being opened for 5 years, whichever is later, may result in a 10% IRS penalty tax. Limitations and restrictions may apply.
Traditional IRA account owners have considerations to make before performing a Roth IRA conversion. These primarily include income tax consequences on the converted amount in the year of conversion, withdrawal limitations from a Roth IRA, and income limitations for future contributions to a Roth IRA. In addition, if you are required to take a required minimum distribution (RMD) in the year you convert, you must do so before converting to a Roth IRA.