planning 2026-04-11
Estate Planning Basics
Wills, trusts, beneficiaries, and the documents every adult should have.
Estate planning is the part of finance no one wants to do — and the part with the highest cost of skipping.
The Core Documents
- Will — directs distribution of probate assets
- Durable power of attorney (financial) — designates financial decision-maker
- Healthcare proxy — designates medical decision-maker
- Living will — documents end-of-life care preferences
- Beneficiary designations — on retirement accounts, life insurance
When a Will Is Enough
For most people with simple estates, a properly executed will plus updated beneficiaries handles distribution.
DIY tools: Trust & Will, Nolo, LegalZoom.
When You Need a Trust
- Minor children inherit substantial assets
- Privacy (probate is public)
- Multi-state property
- Special-needs beneficiaries
- Estate over federal exemption ($13.6M+ in 2026)
Beneficiary Designations Audit
Run through every account: 401(k), IRA, life insurance, annuities, bank/brokerage POD/TOD.
Update after marriage, divorce, births, deaths.
Probate
Court-supervised process. 3-7% of estate value, 6-18 months.
Estate Tax
Federal applies above $13.6M (2026). State varies.
Update Triggers
- Every 3-5 years
- Marriage or divorce
- Birth or adoption
- Major asset changes
- Move to a different state