As an executive, you make complex decisions that help your organization achieve its goals. Yet decisions about achieving your own wealth and legacy goals can be equally complex, thanks to an array of compensation types that may include equity, deferred income and other benefits such as supplemental retirement plans. “A thoughtful estate plan should consider the asset mix, tax implications and timing of each, to help ensure your plan accomplishes what you intend,” says Amy Permenter, Executive Wealth Strategist and Head of Corporate Executive Planning, Planning Center of Excellence, Bank of America Private Bank. 

“Detailed planning with an experienced team is necessary whether you’re a mid-level executive or a CEO,” Permenter says. While 2026 federal estate, gift and generation-skipping transfer (GST) tax exemptions of $15 million per person ($30 million for married couples) may seem lofty, state-level estate taxes, income taxes, probate fees and administrative costs can erode assets, especially when company benefit and retirement plans are involved. “Each plan’s rules and beneficiary designations, not your will, may drive some of your most valuable asset transfers,” Permenter says.

Traditional estate planning strategies (see sidebar, “Elements of an Estate Plan”), while essential, may not be enough. For executives, a step-by-step assessment might include:

Naming beneficiaries for eligible assets

Establishing and updating beneficiary designations for 401(k)s and other retirement accounts is standard best practice to ensure the funds go to those you intended. But don’t stop there. “Equity awards, executive benefit plans and company-provided life insurance also allow for beneficiary designations,” Permenter advises. “I’ve seen executives with millions of dollars in unvested equity awards without a named beneficiary,” she says. “Because of a missed step that might have taken five minutes, those assets may be subject to delays and uncertainties of probate.”

And make sure to revisit beneficiary designations periodically and coordinate them with your broader estate plan, Permenter advises. “People may name beneficiaries early in their career and forget to review those choices as their family, career and wealth change,” she says. If you die unexpectedly and you’ve named children as primary beneficiaries, they might directly inherit wealth they’re not yet prepared to manage, or if you leave everything to a spouse, that person could remarry, potentially jeopardizing the legacy you intended for your kids. “To help ensure your wishes are carried out, one option to consider might be naming a trust rather than a specific individual as beneficiary,” Permenter says.

Ensuring smooth transfer of company shares

Company stock, which may account for a sizable share of your wealth, can be difficult to transfer to your heirs or to a trust during your lifetime, and can pose challenges even as part of your estate. Even when you die, company and SEC restrictions and reporting requirements may complicate and delay your estate’s ability to receive and liquidate those shares. “It’s vital to work with accountants and advisors who understand these rules and nuances,” says Jason Stahl, Wealth Strategies Advisor, Bank of America Private Bank. “They can help you create a plan to provide liquidity for your estate, compliance with the rules and, at the appropriate time, sales of shares to limit concentration risk for your heirs.”

Managing unvested compensation

If part of your compensation comes through equity awards—such as stock options, restricted stock units (RSUs), restricted stock or performance shares—it’s vital to understand the rules governing how each type transfers to heirs. “Some plans may accelerate vesting at death, while others forfeit all or some portion of unvested awards,” Permenter explains. “For options that do vest, most plans impose a post‑death exercise window, often between 90 days and one year. Missing that deadline means the option expires worthless, resulting in a permanent loss of value for your family,” she says.

Restricted stock, RSUs and performance shares that are not forfeited typically vest automatically at death, but the timing and tax consequences may be problematic. “Even after the award vests, delivery of the shares to the estate can be significantly delayed, often far longer than families anticipate, as administrators work to verify beneficiary information,” Permenter adds.

Such delays may create liquidity challenges. “Income taxes are collected according to fixed IRS deadlines, regardless of when the shares are actually delivered to the estate,” Permenter says. “And the tax is based on their value at vesting, not the value when the shares are delivered. If the stock price declines sharply after vesting, your heirs may receive shares worth far less than the value used for tax determination.” After carefully examining your plan’s specific rules, your estate planning team might help you use hedging strategies or insurance to close these potential gaps.

Meeting charitable goals and reducing taxes using unpaid income

If you have deferred compensation or unpaid retirement plan distributions, a significant amount of income could be paid out at the time of your death. Known as income in respect of a decedent (IRD), this pay could not only be exposed to estate taxes, but also be taxable as income to your beneficiaries. If philanthropy is one of your estate goals, you could potentially eliminate that tax obligation for your heirs and maximize your charitable gifts by directing IRD to a donor-advised fund or charitable trust.

“Since those assets are out of your taxable estate and the charities won’t owe income tax, gifting IRD can be much more efficient than using money you’ve already paid taxes on,” Stahl says. For your family’s inheritance, focus where possible on assets such as appreciated and unrestricted company stock, because those will receive a basis adjustment to their value at the time of your death, minimizing potential capital gains taxes, he suggests.

Accounting for multiple homes

As your career accelerates, you may find yourself owning homes in different states. As part of your estate, these properties may be subject to probate rules and estate taxes in multiple jurisdictions, Stahl notes. “Thoughtful ownership and titling of properties can help reduce both the administrative costs and tax implications of settling your estate,” he says. Placing properties in a trust could keep them out of probate and provide for ongoing management or sale of the properties, with directions on how the trustee will distribute the proceeds if they’re sold.

Regularly revisiting your estate plan, even after retirement

“Many of these challenges become simpler when you retire,” Stahl says. “Within a few years, your unvested equity is vested, company stock restrictions are gone, deferred compensation distributions may have commenced and your company retirement plans can now be consolidated and managed outside of the organization.” But that doesn’t mean the planning ends. “Now that you can be more proactive about your concentrated holdings, advisors can help you diversify your portfolio, manage income taxes and think more broadly about gifting strategies,” he adds.

Making trusts a part of your estate plan

Trusts can play an important role in helping you meet these and other estate planning goals, Permenter notes. For example, if you become incapacitated, having a revocable trust in place can smooth the path for someone you trust to manage your assets, and to ensure privacy and avoid delays of probate if you die. Irrevocable trusts, meanwhile, can help you transfer your wealth to loved ones, give to the causes you care about or meet other goals.