Legacy Planning Guide
Legacy Planning for Corporate Executives
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. Executives face a constellation of compensation types — deferred comp, SERPs, split-dollar insurance, restricted stock — that require specialized planning beyond what a standard estate attorney handles.
Why Executives 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 executives — and the ones that tend to catch people off guard.
Deferred compensation plans (NQDC) are at risk if the company fails — not ERISA protected
Split-dollar life insurance arrangements with complex ownership and beneficiary structures
SERP (Supplemental Executive Retirement Plan) death benefit triggers and conditions
Non-compete agreements that may restrict heirs' ability to transition certain assets
Board seats and fiduciary responsibilities that require formal resignation on death
Documents every executive 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
Summary of all executive compensation: SERP, NQDC, split-dollar insurance
- 2
Deferred compensation distribution schedule and death benefit provisions
- 3
Restricted stock agreements with death acceleration provisions
- 4
Director and officer liability insurance tail coverage
- 5
Letter to the board explaining your professional legacy and unfinished strategic priorities
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.
NQDC plan treated as a guaranteed asset — subject to company insolvency risk
Split-dollar insurance arrangement not documented — family disputes with employer
SERP death benefit triggers not met — family receives far less than expected
Restricted stock expiration on death — millions forfeited due to unknown deadline
No letter to the next generation about your career values and the leaders who shaped you
Your first 3 steps as a executive
Don't know where to start? These are the three most impactful moves for executives who are just beginning to think about legacy planning.
Review all equity award agreements for death and disability provisions
Document all deferred compensation plans and their beneficiary designations
Consult an estate planning attorney about trusts for tax-efficient wealth transfer
Frequently asked questions for executives
How do I plan for stock options and equity compensation in my estate?
Unvested options typically expire at death. Vested options may be exercisable for 12–24 months (check your award agreement). RSUs and performance shares have their own acceleration provisions — review all equity documents carefully.
What is deferred compensation and how is it treated in estate planning?
Deferred compensation is a claim against your employer, not a tangible asset. It's included in your estate at fair market value, but if your employer becomes insolvent, your family is an unsecured creditor. Balance NQDC plans with life insurance.
Can my family continue receiving my executive benefits after I die?
Some benefits (life insurance proceeds, pension survivor benefits) continue. Others (health insurance, car allowance, expense accounts) stop immediately. Document all benefits and coverage details in a single location for your family.
Should I use a trust for executive compensation planning?
Yes — irrevocable life insurance trusts (ILITs) and grantor retained annuity trusts (GRATs) are common tools for executives with significant assets. They can reduce estate taxes while providing for heirs. Consult an estate planning attorney.
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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 executives:
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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.