Estate Planning: Protecting What You've Built

Estate planning isn't about being rich or old. It's about controlling what happens to your stuff and your dependents if something happens to you.

Why It Matters

Without estate planning:

• Courts decide who gets your assets
• Family may fight over your things
• Guardianship of kids is uncertain
• Your wishes aren't known (medical, end-of-life)
• More goes to taxes and fees

The Essential Documents

1. Will

Says who gets what after you die.

Must include:

• Who inherits your assets
• Who's the executor (manages the process)
• Guardian for minor children

2. Beneficiary Designations

These OVERRIDE your will for:

• Retirement accounts (401k, IRA)
• life insurance
• Bank accounts with POD/TOD
• Brokerage accounts

3. Power of Attorney (POA)

Lets someone make financial decisions if you're incapacitated.

Two types:

• Limited: Specific actions only
• General/Durable: Broad authority, survives incapacity

4. Healthcare Proxy / Medical POA

Lets someone make medical decisions if you can't.

5. Living Will / Advance Directive

Documents YOUR wishes for end-of-life care.

When You Need a Trust

Trusts can:

• Avoid probate (public, slow, expensive)
• Provide for minor children over time
• Protect assets from creditors
• Reduce estate taxes (for large estates)

Revocable Living Trust:

• You control it while alive
• Assets transfer immediately at death
• Avoids probate
• No tax benefits

Irrevocable Trust:

• You give up control
• Can protect assets and reduce taxes
• More complex

For most people under $5M net worth, a will + proper beneficiaries is sufficient.

The Estate Tax Reality

2026 Federal Estate Tax Exemption: $15 million per person

If your estate is under this, you owe no federal estate tax.

Some states have lower thresholds (check yours).

The Action Checklist

DIY vs. Lawyer

A basic estate plan from a lawyer costs $1,000-3,000. Complex ones cost more.

Common Mistakes