Legacy Planning Guide
Legacy Planning for Engineers
We know this isn't the most comfortable topic to sit down with. But if you've taken the time to open this page, you're already ahead of most people. Engineers — especially in tech — often accumulate significant equity compensation alongside strong salaries. Yet the complexity of RSUs, stock options, and ESPP plans creates a planning puzzle most families are unprepared to navigate.
Why Engineers face unique challenges
Every profession has its own blind spots when it comes to legacy planning. Here are the ones that come up most often for engineers — and the ones that tend to catch people off guard.
RSU vesting schedules with complex tax implications at death
Employer stock concentration risk — estate may be over-exposed to one company
ESPP (Employee Stock Purchase Plan) shares with specific holding periods and tax treatment
Professional Engineer (PE) license for consulting engineers requires license succession plan
Patent and IP ownership — employer agreements may complicate what you actually own
Documents every engineer should have
You don't need to have everything perfect from day one — but having these documents in place means your family won't be left guessing when it matters most.
- 1
Equity compensation summary from employer (RSUs, options, ESPP) with vesting schedules
- 2
Brokerage accounts holding vested shares — beneficiary designations checked
- 3
Employment agreement reviewed for IP ownership clauses
- 4
Professional license documentation and renewal requirements
- 5
Letter explaining your technical projects to family members who may not understand their significance
Mistakes that cost families the most
These aren't meant to scare you — they're meant to protect you. Each one is a real scenario we've seen play out, and each one is completely avoidable.
RSUs assumed to be a bequest — actually vest, then the estate owes taxes immediately
Stock options expire after 90 days — heirs miss the window entirely
No beneficiary on brokerage account — shares go through probate
ESPP shares held in employer platform with no instructions for access
Patent applications in progress — family doesn't know to continue prosecution
Your first 3 steps as a engineer
Don't know where to start? These are the three most impactful moves for engineers who are just beginning to think about legacy planning.
Document all current projects under your PE seal and identify a backup licensed PE
Review or create your firm's buy-sell agreement with partners
Calculate key-person insurance based on your revenue impact to the firm
Frequently asked questions for engineers
Do I need a succession plan for my PE license?
If you're a sole proprietor with a professional engineering stamp, projects you've sealed cannot continue without a licensed PE. Document any in-progress projects and designate a licensed colleague who can take them over.
How do I value my engineering firm for estate planning?
Small engineering firms are typically valued at 40–60% of annual revenue, or 3–5x EBITDA. Key-person dependency significantly reduces value — documenting systems and processes increases your firm's transferable worth.
What happens to projects under my PE seal if I die?
Clients and project owners must be notified. A replacement PE must review and re-seal any future work. Projects under construction may need additional engineering reviews. This transition should be documented in your succession plan.
Should I have key-person life insurance for my firm?
Yes — if your death would cause clients to leave, projects to stall, or revenue to drop significantly, key-person insurance compensates the firm for this disruption while a qualified successor is found.
Ready when you are
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Where to start on My Loved Ones
Our AI-guided tools walk you through each document step by step — no legal jargon, no blank pages staring back at you. Here's what we recommend for engineers:
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Important disclaimer
This content is for general informational purposes only and does not constitute legal, tax, or financial advice. It was created with the assistance of AI and may contain inaccuracies. Laws and regulations change frequently — always consult a qualified attorney or financial advisor before making estate planning decisions.