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Planning Your Estate

Protect what you've built and the people you love

Estate planning isn't just for the wealthy — it's for anyone who has people they love and assets they've worked hard to build. Without a basic estate plan, the state decides how your assets are distributed, your family may face probate court, and the people who depend on you could be left in financial and legal limbo during an already devastating time.

At its core, estate planning is an act of love. It's the practical expression of caring for your family after you're gone. A comprehensive estate plan includes a will, beneficiary designations, powers of attorney, healthcare directives, and potentially trusts — each serving a specific purpose in protecting your wishes and your loved ones.

For those with larger estates, tax planning becomes critical. The federal estate tax exemption is over $13 million per person in 2024, but this is scheduled to sunset in 2025. State estate taxes have lower thresholds. Even below these levels, strategic gifting, trust structures, and life insurance can significantly impact what your heirs ultimately receive.

Your Financial Checklist for Planning Your Estate

1

Calculate your potential estate tax exposure

Know whether your estate will owe federal or state estate taxes and by how much.

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2

Assess your life insurance needs

Life insurance is often the most efficient way to provide liquidity for your estate or income replacement for your family.

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3

Calculate your total net worth

Your estate plan should account for every asset — investment accounts, real estate, business interests, and personal property.

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4

Compare term vs whole life insurance

For estate planning purposes, permanent life insurance (whole life) serves different purposes than term. Understand both.

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5

Create or update your will

A will is the foundation of your estate plan — without one, the state's default rules apply, not yours.

6

Update all beneficiary designations

Retirement accounts and life insurance pass by beneficiary designation, not by will — these must be kept current.

7

Consider a living trust

A revocable living trust avoids probate, provides privacy, and can simplify asset transfer significantly.

Calculators for This Life Event

Each tool is free, instant, and built for exactly where you are right now.

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Estate Tax Calculator

Estimate your federal and state estate tax liability to determine if tax planning strategies are needed.

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Life Insurance Needs Calculator

Calculate how much life insurance your family needs for income replacement and estate liquidity.

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Net Worth Calculator

Document the full picture of your estate — every asset and liability your heirs will inherit.

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Term vs Whole Life Calculator

Compare term and permanent life insurance to find the right structure for your estate plan.

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Common Financial Mistakes to Avoid

  • ⚠Not having a will — dying intestate means the state distributes your assets according to default rules, which may not match your wishes.
  • ⚠Forgetting to update beneficiary designations after major life changes — divorce, deaths, or births can make outdated designations catastrophic.
  • ⚠Relying on a will to pass retirement accounts — 401(k)s and IRAs pass by beneficiary designation, not by will. These must be updated separately.
  • ⚠Not planning for incapacity — powers of attorney and healthcare directives matter during your lifetime, not just after death.
  • ⚠Underestimating state estate taxes — many states have estate tax exemptions far below the federal threshold, catching families by surprise.

Frequently Asked Questions

Do I really need an estate plan if I'm not rich?▼
Yes. Even a modest estate benefits from a will (to specify asset distribution and name guardians for minor children), a healthcare directive (to specify medical wishes if you're incapacitated), and powers of attorney. Without these, your family faces court costs, delays, and uncertainty.
What's the difference between a will and a trust?▼
A will goes through probate (public, time-consuming, potentially expensive). A revocable living trust avoids probate — assets transfer directly to beneficiaries, privately and quickly. Trusts cost more to set up but save significantly on administration.
How does the estate tax work?▼
The federal estate tax applies to estates above $13.61 million per person (2024). Above that threshold, a 40% tax applies to the excess. Many states have lower exemptions. Strategic gifting, irrevocable trusts, and charitable planning can reduce taxable estate size.
What is a power of attorney and do I need one?▼
A durable power of attorney designates someone to manage your financial affairs if you're incapacitated. A healthcare POA (or healthcare proxy) designates someone to make medical decisions. Both are essential — without them, your family may need to go to court to manage even basic financial matters.

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