Guest Author: eState Planner

Introducing the 3-2-3 Model

Every estate planning lawyer has experienced it.

A client begins the meeting with what appears to be a straightforward set of instructions: “Everything to my spouse, then to my children.” Yet within minutes, the discussion expands. Questions arise about asset ownership, beneficiary designations, blended families, trusts, family cottages, charitable gifts, business interests, and contingencies that the client may never have considered.

While no two estate plans are alike, the challenge is often the same: ensuring the conversation progresses in a logical way without overlooking important issues or decisions.

The quality of an estate plan depends not only on legal knowledge and drafting expertise, but also on the quality of the planning conversation that precedes it. A well-structured interview helps lawyers uncover relevant facts, test a client’s assumptions, and ensure that their instructions reflect what they truly intend to accomplish.

The 3-2-3 Model was developed to bring greater structure to that conversation. Rather than approaching each meeting as a series of disconnected questions, the model provides a practical framework that guides lawyers through the key planning decisions in a consistent sequence.

The framework is built around three simple questions that every estate plan must answer:

• Who should inherit? The lawyer considers three planning scenarios to ensure the client’s wishes have been addressed under every meaningful set of circumstances.
• How should they inherit? Once the beneficiaries have been identified, the lawyer determines whether each gift should be made outright or through a trust.
• How does the estate get there? Finally, the lawyer confirms which assets are governed by the will, what obligations must be satisfied first, and how the remaining estate will ultimately be distributed.

The strength of the 3-2-3 Model lies in its simplicity. It does not replace professional judgment or careful legal analysis. Instead, it provides a repeatable framework for asking better questions, identifying potential planning issues earlier, and helping clients understand how their estate plan will operate before drafting begins.

The 3-2-3 model in practice

The 3-2-3 Model organizes the estate planning conversation into three stages. Each stage builds on the one before it, helping lawyers move from understanding a client’s objectives to confirming that their estate plan will achieve them.

1. Who should inherit?

The first step is to identify who should receive the estate under three distinct planning scenarios. Clients naturally focus on the outcome they expect—for example, a surviving spouse inheriting everything—but a properly drafted will should address the alternatives as thoroughly as the primary plan.

The model considers three scenarios.

A surviving spouse.

If the spouse survives the testator, should the estate pass outright or through a trust? Are there gifts to children or charities that should be made during the spouse’s lifetime? If a trust is used, who should ultimately receive the remaining property?

Descendants, but no surviving spouse.

If the spouse has predeceased the testator, how should the estate be divided among children or other descendants? Should beneficiaries inherit immediately, or should some or all of their inheritance remain in trust? Are there assets—such as a family cottage, private corporation, or investment property that require special planning?

No surviving spouse or descendants.

Although clients often view this as a remote possibility, every estate plan requires a complete distribution. Family members, friends, charities, or other beneficiaries may all become part of the discussion, particularly where spouses have different intentions for the ultimate distribution of their estates.

Working through each scenario in sequence helps ensure the distribution plan is complete before attention turns to drafting. Rather than treating the second and third scenarios as brief fallback provisions, the lawyer can give each the same thoughtful consideration as the client’s primary plan.

2. How should they inherit?

Once the beneficiaries have been identified, the next question is how each gift should be received.

The 3-2-3 Model distinguishes between two types of gifts: absolute gifts and trust gifts.

An absolute gift transfers property to the beneficiary without ongoing restrictions. A trust gift, by contrast, lets the client determine when, how, or under what conditions the property is received.

One practical indicator that a client may be describing a trust is the word “but.”

• “I’d like my daughter to receive the cottage, but not until she’s older.”
• “I’d like my spouse to inherit the estate, but I’d like whatever remains to pass to my children.”

That single word often signals that the client is describing more than an outright gift. It opens the door to important planning discussions about trustees, timing, discretion, and the ultimate destination of the property.

Framing the conversation this way helps clients understand that they are making two separate decisions: who should benefit, and how that benefit should be structured.

3. How does the estate get there?

The final step focuses on how assets move through the will.

The model illustrates this using three visual concepts: the Funnel, the Filters, and the Bucket.

The Funnel represents the assets that will actually be governed by the will. This encourages an early discussion about ownership, beneficiary designations, jointly held property, and any assets that may pass outside the estate.

The Filters represent the obligations that must be satisfied before the residue is distributed, including debts, taxes, estate administration expenses, and specific gifts. Looking at these items together helps clients understand how individual gifts can affect the overall distribution of the estate.

Finally, the Bucket represents the residue—the property that remains after the filters have been applied. This is where the client’s distribution plan ultimately comes together.

Rather than reviewing clauses one at a time, these visual concepts allow both lawyer and client to see how property flows through the estate from beginning to end. They also provide a practical way to test the proposed plan before drafting is finalized, making it easier to identify inconsistencies, unintended outcomes, or opportunities for further discussion.

Bringing greater structure to estate planning conversations

The value of the 3-2-3 Model is designed to provide a consistent approach to conducting estate planning meetings—one that helps ensure important conversations take place before drafting begins. By working through three planning scenarios, distinguishing between absolute and trust gifts, and tracing how assets move through the estate, lawyers can approach every client meeting with a clear and repeatable process.

The model also benefits clients. Estate planning decisions are often easier to make when they are considered one step at a time and supported by a clear explanation of how the plan will operate. A structured conversation helps clients test their assumptions, explore alternatives, and gain confidence that their estate plan reflects their intentions.

Ultimately, the quality of an estate plan depends on more than the clauses that appear in the final documents. It depends on the questions that were asked, the issues that were explored, and the client’s understanding of the decisions they made along the way.

By bringing greater structure to the planning conversation, lawyers uncover better information, provide clearer advice, and build estate plans that more accurately reflect each client’s intentions.

Lawyers interested in exploring the framework in greater detail can download The 3-2-3 Model: An Estate Planning Guide from eState Planner, which expands on the concepts discussed in this article and includes visual examples illustrating how the model can be applied in practice. Follow eState Planner on LinkedIn here.

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LESA wishes to thank eState Planner for sponsoring our Estate Planning Processes: From Intake to Execution webinar.