Estate planning gives families clarity and peace of mind. By putting your wishes in writing, you help loved ones avoid confusion and protect what matters most.
In Idaho, a plan can preserve assets, limit disputes, and guide decisions about care and property after your passing. Taking these steps today helps your family tomorrow.
What Is a Will and Why Do Idaho Families Need One?
A will is a written document that directs how your property will be distributed after death, and it remains the foundation of many Idaho estate planning strategies. This tool allows you to decide who should inherit your property, name guardians for minor children, and appoint someone to carry out your wishes. The state’s rules will make decisions regarding your inheritance for you if you do not have a will, and it might not be congruent with your wishes
In Idaho, a valid will must be in writing, signed by the person making it, and witnessed by at least two competent individuals who also sign in each other’s presence.1 Wills must also be signed in the presence of a notary public. These requirements give the document legal authority and reduce the risk of challenges in court. For most Idaho residents, creating a valid will is the first and most important step toward a complete estate plan.
Idaho Intestacy Laws
When someone in Idaho dies without a will, the state decides how their estate is divided. These rules create a default order of succession that may not match what you would have chosen.
Here’s how property passes under Idaho’s intestacy rules:2
- With children but no spouse: your children inherit the entire estate.
- With a spouse but no children or parents: your spouse receives everything.
- With parents but no spouse or children: your parents take the full estate.
- With a spouse and children: your spouse keeps all community property and half of your separate property, while your children share the remaining half of your separate property.
- With a spouse and parents: your spouse keeps all community property and half of your separate property, while your parents receive the other half of your separate property.
While these laws create a structure, they rarely reflect the personal choices most families would make. They can exclude people you might want to provide for, such as stepchildren or charitable causes, and can divide property in ways that strain family relationships. By creating your own will or trust, you stay in control of where your assets go and reduce the risk of disputes during an already difficult time.
Understanding Trusts: An Alternative or Complement to Wills
For Idaho families, trusts offer a versatile method for managing property both during their lifetime and after death. Unlike wills, which take effect only when a person passes, trusts can begin working immediately and continue to guide how assets are handled long term.
One of the biggest advantages of trusts is avoiding the probate process, which saves both time and legal fees. Assets held in a trust bypass the court system, transferring directly to beneficiaries. Trusts also give parents or caregivers the ability to provide structure for minors, relatives with disabilities, or others who may need financial management.
The two most common categories are revocable and irrevocable trusts. You can modify or cancel a revocable trust during your lifetime, giving you flexibility and control. In contrast, an irrevocable trust is permanent once established. However, it provides tax and asset protection benefits that a revocable trust does not. Trusts and wills often work best together. A will provides the foundation for directing property, while a trust adds another layer of control, privacy, and protection for specific needs.
Common Types of Trusts
Trusts come in many forms, and the right choice depends on your family’s specific needs. A proper trust can provide long-term stability, offer clear guidance for heirs, and shield other assets. Common choices include:
Revocable Living Trust: Enables you to manage and distribute your assets during your lifetime and after death, avoiding probate while allowing modifications or revocation at any time.
Special Needs Trust (SNT): Establishes a fund for a disabled individual, safeguarding their eligibility for government benefits.
Charitable Remainder Trust (CRT): Distributes income to specified beneficiaries for a predetermined period or their lifetime. Upon termination, the remaining assets are transferred to a chosen charity, offering tax benefits.
Qualified Personal Residence Trust (QPRT): Allows for the transfer of a home’s ownership to heirs at a reduced taxable value, while the grantor retains the right to reside in the home for a specified number of years.
Grantor Retained Annuity Trust (GRAT): Allows you to transfer appreciating property to heirs while receiving fixed annuity payments for a defined term, reducing exposure to estate taxes.
Irrevocable Life Insurance Trust (ILIT): Minimizes federal estate taxes and provides liquidity for heirs by holding life insurance outside of your taxable estate.
Probate in Idaho: What Families Should Know
Probate is the judicial process that involves authenticating a will, settling debts, and distributing the assets of an estate under court supervision. In Idaho, probate is required if the estate includes real estate or if the total value of other assets exceeds $100,000.3 While smaller estates may qualify for a simplified process, many estates must go through the full court procedure.
The timeline for probate often ranges from several months to more than a year. During this time, the court oversees the work of personal representatives, who are responsible for paying debts, filing necessary legal documents, and distributing assets to beneficiaries.
Probate can also be expensive. Filing fees, legal services provided by an attorney, and administrative costs all reduce the value of what heirs ultimately receive. These legal fees and delays often only add stress to a hard situation.
Idaho families often explore options such as trusts, beneficiary designations, or joint ownership to minimize or avoid the probate process. These strategies keep more of the estate intact, limit costs, and streamline the transfer of property outside the probate process.
Key Estate Planning Documents Beyond Wills and Trusts
A complete estate plan involves more than just wills and trusts. Several additional estate planning documents help Idaho families prepare. These tools provide clear guidance for trusted individuals to act on your behalf through binding legal documents:
Powers of Attorney: Allows someone you trust to handle financial and legal matters if you become unable to manage them yourself.
Healthcare Directives: This document outlines your medical preferences and names a healthcare proxy in the event you are unable to make decisions for yourself.
HIPAA Authorization: Grants access to your medical records to those you designate, allowing them to communicate with doctors and hospitals.
Living Will: Provides clear instructions about end-of-life care, helping loved ones and healthcare providers honor your choices.
Estate Taxes in Idaho and Beyond
Idaho does not impose its own estate or inheritance tax, which provides relief for many families. However, larger estates may still be affected by federal estate taxes, which apply when the total value exceeds the federal exemption amount. For 2025, the lifetime exemption is set at $13.99 million per person.4
When an estate exceeds this threshold, the amount above it is taxed at graduated rates ranging from 18% to 40%.5 These taxes can significantly reduce the wealth available to heirs, especially when tied up in valuable real estate or family businesses.
Portability rules allow married couples to combine exemptions if the correct filings are made, effectively doubling the amount that can be transferred tax-free. This can help preserve more assets for beneficiaries and reduce overall liability.
Strategies to Reduce Estate Taxes
Reducing exposure to estate taxes often requires planning. Idaho families have several options to protect wealth, preserve property, and create a clear plan with the help of qualified professionals:
Lifetime Gifting: Use the annual exclusion to make tax-free gifts during life, therefore reducing the size of your estate while benefiting loved ones directly.
Annual Gifting: In addition to the lifetime exemption, individuals also have access to the annual gift tax exclusion, which operates separately. For 2025, the exclusion allows individuals to gift up to $19,000 per recipient, or $38,000 for married couples, without using any of their lifetime exemption.1
Direct Payments: Pay tuition or medical expenses for someone else directly to the provider. These transfers do not count against your annual exclusion or lifetime exemption.
Irrevocable Trusts (various types): Move assets out of your taxable estate, which can lower exposure to federal estate taxes while providing structure for heirs.
Charitable Giving: Donate to causes you care about, either outright or through vehicles like a donor-advised fund (DAF), to reduce the estate’s taxable value.
Family Limited Partnerships (FLPs): Transfer interests in a family business or real estate at reduced values for tax purposes, while maintaining control over operations.
Life Insurance Trusts (ILITs): Use an irrevocable life insurance trust to provide liquidity for heirs without increasing the estate’s taxable base.
Grantor Retained Annuity Trusts (GRATs): Transfer appreciating property to heirs while receiving annuity payments for a term, minimizing transfer taxes.
Estate Planning FAQs
Do all Idaho families need a trust, or is a will enough?
Not every family needs a trust. For some, a properly drafted will provides enough direction for distributing assets to beneficiaries and handling basic matters. Trusts become more useful when you want to avoid the probate process, protect privacy, or manage funds for minors and special circumstances. The choice depends on the complexity of your estate and your family’s goals.
How often should estate plans be updated?
It’s recommended to review your estate plan periodically, especially after significant life events like marriage, divorce, or the birth of a child. Updates make sure your documents continue to reflect your wishes and comply with current Idaho law. Failing to make changes can result in outdated instructions that no longer fit your family or financial picture.
What happens if someone dies without a will in Idaho?
When a person passes without a will, the state decides how their estate is divided. Default rules determine which heirs receive property, often in ways that do not align with personal preferences. This can create familial arguments and exclude people you might have wanted to provide for.
Can out-of-state wills or trusts be used in Idaho?
Generally, a will or trust made elsewhere can be valid in Idaho if it was properly executed under that state’s laws. However, certain provisions may not work the same way under Idaho’s requirements. Having an estate planning attorney review out-of-state legal documents helps confirm they comply locally – avoiding complications in court.
How does estate planning affect taxes at the state and federal levels?
Idaho does not impose its own estate or inheritance tax, but larger estates may face federal estate taxes. Careful planning can help minimize what is owed and keep more value in the hands of your loved ones. Tools like gifting, trusts, and charitable transfers offer strategies to reduce taxable amounts while meeting family goals.
How We Can Help Idaho Families Plan Ahead
As a financial advisory firm, we help families develop financial plans that work hand-in-hand with estate planning. Our role is to protect real estate, transfer other assets efficiently, and structure trusts in order to support loved ones while prioritizing your broader goals.
For those looking to better understand the estate planning process, we recommend the book Estate Planning for Idahoans by Shaila Buckley and Rachel Murphy. This is an Idaho-specific guide from a trusted legal expert with clear, practical insights.
When it comes to preparing legal documents or navigating the probate system, we can introduce you to a trusted estate planning attorney from our network or work directly with the one you already have. This coordinated approach helps reduce fees and ensures you receive the specific protections your situation requires.
We encourage you to schedule a complimentary consultation with our team. Together, we can review your priorities, address questions, and provide clear guidance for preserving your legacy.
Resources:
- https://legislature.idaho.gov/wp-content/uploads/statutesrules/idstat/Title15/T15CH2.pdf
- https://www.nolo.com/legal-encyclopedia/intestate-succession-idaho.html
- https://law.justia.com/codes/idaho/title-15/chapter-3/part-12/section-15-3-1201/
- https://www.schwab.com/learn/story/estate-tax-and-lifetime-gifting
- https://www.usbank.com/wealth-management/financial-perspectives/trust-and-estate-planning/estate-taxes.html
- https://www.kiplinger.com/taxes/gift-tax-exclusion
BR Wealth Management and Private Client Services (PCS) do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.
Recognized multiple years as a Best in State Wealth Advisor by Forbes, Brian is the Managing Principal at BR Wealth Management - a Boise, Idaho firm that helps families across the country to craft tailored, tax-efficient plans for retirement income and multi-generational wealth transfer.
The Forbes Best in State Wealth Advisor ranking algorithm is based on industry experience, interviews, compliance records, assets under management, revenue and other criteria by SHOOK Research, LLC, which does not receive compensation from the advisors or their firms in exchange for placement on a ranking. Investment performance is not a criterion. Please click here to see the full ranking.