This client memo is designed to serve as a thoughtful starting point for conversations about integrating artificial intelligence (“AI”) into estate planning. It outlines a practical framework to help clients navigate the complexities of AI-driven strategies, offering useful tips while emphasizing the importance of exercising caution. As AI continues to evolve, this memo encourages balanced, well-informed decision-making, highlighting potential benefits and risks to ensure clients avoid both overuse and misuse in their planning processes.

BEFORE YOU FALL IN LOVE WITH AN AI STRATEGY

Before moving forward with AI-generated estate planning strategies, it is essential to pause and consider several key questions that help determine the reliability and practicality of the proposed solutions. Asking these questions can safeguard against unintended risks and ensure that the AI output aligns with your actual needs and objectives.

  • What problem is this solving – real liability or just a tax number?
  • What assumptions must be true for this to work?
  • How fragile is the plan if things only mostly go right?
  • Where does the risk actually land?
  • Would I still do this if the tax savings were cut in half?
  • Is this strategy common, or just clever?

HOW TO STRESS TEST AN AI-GENERATED IDEA

AI-generated estate planning ideas should never be accepted at face value; it is crucial to rigorously test their validity and resilience before implementation. By running these outputs through additional prompts and scenarios, you can better understand their limitations and avoid costly mistakes.

  • What happens if returns underperform?
  • What if I die earlier than expected?
  • What if interest rates or tax law change?
  • What is the worst realistic outcome?

USING AI TO REVIEW YOUR EXISTING ESTATE PLAN

When using AI to review your existing estate plan, it is essential to focus on the details that matter most to you and your loved ones. The following prompts and questions help you dig deeper into common provisions, ensuring clarity and addressing potential areas of concern for families.

  • Explain this plan to me in plain English.
  • Who controls decisions during life, incapacity and after death?
  • Where is discretion granted, and to whom?
  • Where could ambiguity create disputes?

WHAT AI IS NOT GOOD AT

While AI offers valuable assistance in many areas, there are important limitations to what it can accomplish in estate planning.

  • Confirming tax compliance or audit risk
  • Validating valuation approaches
  • Deciding whether a strategy is wise

PRIVACY AND DATA SAFETY

Do not upload estate planning documents without removing names, schedules and sensitive data. Treat estate plans like medical records, not casual documents.

CONCLUSION

Estate planning is a complex process that requires careful consideration of control, discretion, and the potential for ambiguity and disputes. While AI can assist in certain aspects, its limitations in areas such as tax compliance, valuation, and strategic decision-making make professional guidance essential. Protecting privacy and sensitive data is paramount, as estate plans should be handled with the same care as medical records. To ensure your unique needs are met and your questions are answered, we strongly encourage you to reach out to your Wiggin and Dana attorney for a thorough discussion and personalized advice.

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This memo is designed to inform clients and other interested persons about issues and developments in the law affecting trust and estate administration and estate and tax planning for individuals and their families, fiduciaries, investment advisors and business owners. Nothing in this memo constitutes legal advice, which can only be obtained as a result of personal consultation with an attorney. The information provided here is believed to be accurate at the time it was provided but is subject to change and does not purport to be a complete statement of all relevant issues. 

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