Practical Estate Planning Ideas for “Middle Tier” Families


































Episode 341 - News flash: Estate planning is not for just the wealthy. Here are some ideas put forward in a recent article by renowned estate attorney Jonathan Blattmachr, especially for what he describes as “middle tier clients,” which he defines as people whose wealth does not exceed the available exemptions.













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Transcript of Podcast Episode 341





Hello, this is Bill Rainaldi, with another edition of Security Mutual’s SML Planning Minute. In today’s episode, we’ll discuss practical estate planning ideas for middle tier families. Middle tier families, those families with wealth falling below the estate tax exemption, are strongly encouraged to make plans for disposition of their estates.
Estate planning is often thought of as a concept exclusively for the wealthy. But that’s not true.  The wealthy may need estate tax planning but practically everyone needs estate planning. As of 2025, the federal estate tax exemption amount for 2025 is set at nearly $14 million for individuals and $28 million for married couples, well out of the range of most—in fact, almost all—individuals.[1] But some estate planning concepts apply not just to the very wealthy, but to what are called “middle tier” taxpayers.
Some of these ideas may simply be common sense for many of us. For one thing, you should have a will, and it should be updated periodically. Having a will can help clarify your wishes as to how your assets should be handled at your death. Otherwise, the decision will be left up to the state you live in. A will can also save money, help prevent family disputes and simplify everything for your loved ones during this very difficult time.
Another common idea is making use of a life insurance trust. A life insurance trust can offer many advantages, including helping protect insurance death benefits from creditors, providing greater control over how and when your beneficiaries receive the funds, and in some cases, saving state estate or inheritance taxes. Yes, several states have their own state estate or inheritance tax systems with significantly lower exemption amounts.
But there’s more. In a recent article for the NAEPC Journal of Estate & Tax Planning, renowned estate attorney Jonathan G. Blattmachr, Esq., made some suggestions for what he refers to as “middle tier clients,” in other words, people with some significant assets, but whose wealth does not exceed the available exemptions. Here are a few of his ideas:[2]
Avoiding “Ruinous” Lifestyles. No shock here. If you become addicted to drugs or alcohol, it could easily ruin your emotional, physical and financial health. Extravagant spending over a long period of time is also likely to be ruinous.
Protecting Your Lifestyle for You and Your Family. As Blattmachr points out, inflation can be a lifestyle-killer. He suggests that in order to maintain your spending powe...