Estate planning is about more than just documents — it’s about protecting the people you love and making sure your wishes are honored when it matters most.
Whether you're planning ahead or responding to a life event, creating an estate plan ensures that your assets, health decisions, and personal legacy are handled the way you intend.
What Is Estate Planning?
Estate planning is the process of legally documenting how you want your property, finances, healthcare, and responsibilities managed — during your life and after.
A well-structured plan allows you to:
Choose who will receive your assets — and when.
Appoint trusted individuals to act on your behalf if you’re ever unable to do so.
Minimize unnecessary delays, costs, and legal conflicts.
Provide clarity and peace of mind for your loved ones.
Core Documents in an Estate Plan
Each estate plan is different, but here are the most common documents it may include:
Will: Specifies how your assets should be distributed and names guardians for dependents.
Trust: Holds and manages assets for your beneficiaries, often with greater flexibility than a will.
Financial Power of Attorney (FPOA): Authorizes someone to manage your financial affairs if you become unable to do so.
Healthcare Power of Attorney (HPOA): Appoints someone to make medical decisions for you if you’re incapacitated.
Advance Healthcare Directive / Living Will: Outlines your medical treatment preferences in advance.
HIPAA Authorization: Allows your chosen representative to access medical records and communicate with healthcare providers.
Guardianship Designations: Names who will care for minor children or dependents.
Why Taxes Matter in Estate Planning
Good estate planning doesn’t just pass assets — it protects their value.
Depending on your state and the size of your estate, you may need to consider:
Estate Taxes: Levied on large estates before assets are passed on.
Inheritance Taxes: Paid by beneficiaries in some states.
Gift Taxes: Apply to transfers of money or property above a certain amount while you're still living and when you pass away.
Planning ahead can help reduce or eliminate these burdens.
Who Needs an Estate Plan?
Everyone over 18 should have at least a basic plan in place — regardless of wealth or family structure.
If you have assets, responsibilities, or loved ones who rely on you, an estate plan gives them clarity and protection.
How to Create an Estate Plan
Here’s a simple outline of the estate planning process:
List your assets (accounts, property, valuables).
Choose your beneficiaries.
Decide who will make decisions if you can’t.
Consider guardianship if you have minor children or dependents.
Select the right legal structure (Will, Trust, or both).
Complete your estate planning documents.
Review and sign with any required witnesses or notaries.
Store your signed documents safely.
Share relevant documents with trusted individuals.
Revisit and update your plan as circumstances change.
Mistakes to Avoid
Even with the best intentions, common errors can leave your plan vulnerable. Watch out for:
Not having a plan at all.
Failing to update your plan after major life events.
Overlooking incapacity planning.
Confusing ownership of assets (e.g., jointly owned property or beneficiary designations).
Naming minors or unqualified individuals as direct beneficiaries.
Not accounting for taxes or liquidity needs.
Letting emotions — rather than clarity — guide decision-making.
Sharing property titles without understanding the tax consequences.
Estate Plan vs. Will: What’s the Difference?
A Will is just one piece of a full estate plan. It dictates who gets what, but doesn’t help avoid probate or manage assets during your life.
An estate plan is the full picture — including Wills, Trusts, Powers of Attorney, healthcare directives, and other key documents that work together to protect your wishes while you’re alive and after.