Estate planning isn’t just for people with significant wealth, it’s about having control over important decisions that affect you and your loved ones. A thoughtful estate plan helps ensure your wishes are honored if you become unable to make decisions for yourself and after your death.
Without an estate plan, state laws – not you – may determine how your assets are distributed, who makes health care decisions on your behalf or who cares for your minor children. Estate planning allows you to stay in control and reduce uncertainty during difficult times.
What estate planning helps you control
An estate plan gives you clarity and control in key areas of your life, including:
- Who receives your assets and how they’re distributed
- Who makes financial decisions if you’re incapacitated
- Who makes health care decisions on your behalf
- Who cares for your minor children, if applicable
- How quickly and efficiently your estate is settled
By planning ahead, you can minimize delays, confusion and conflict while protecting the people who matter most.
Helpful tips to keep in mind
As you’re creating your estate planning documents, keep these five tips in mind.
1. Never updating your will or other documents
Life changes a lot along the way. To make sure your assets go to the people you intended them to, it's crucial to periodically update your will after major life events such as births and divorces.
2. Not taking advantage of gifts to reduce your estate tax
According to the Internal Revenue Code, annual gifts up to $19,000 per spouse may be excluded from estate tax – resulting in potentially $38,000 of estate tax savings that make a difference for individuals, groups and/or businesses.
3. Forgetting about your pets
Your pets are legally your personal property, so you should spell out who will be responsible for them. Set up a pet trust to help put aside money for the care and feeding of your faithful friend.
4. Selecting an inappropriate person to handle your estate
Sometimes a spouse or child isn't always the best person to objectively handle your affairs after you're gone. Think carefully about who you believe is up for the demanding, objective tasks required of an executor, trustee or guardian.
5. Failing to consider digital assets
Your surviving heirs may not have access to your passwords for all your accounts, including financial and social media sites, which means that's value – economic or sentimental – they can't get to. Make sure to provide all your online usernames and passwords.
Frequently asked questions
What does it mean to take control with estate planning?
Taking control with estate planning means making intentional decisions about your assets, health care and loved ones, rather than leaving those choices to state laws or the courts.
Is estate planning only for older adults?
No. Estate planning is important at any age, especially for adults with children, property or specific healthcare wishes they want honored.
What happens if I don’t have an estate plan?
If you don’t have an estate plan, state laws determine how assets are distributed, who makes decisions for you and how your estate is handled, which may not align with your wishes.
Do I need an estate plan if I don’t have many assets?
Yes. Estate planning isn’t only about wealth – it also covers healthcare decisions, guardianship and who can act on your behalf if you’re unable to do so.
Can estate planning help avoid family conflict?
A clear estate plan can reduce confusion, minimize disagreements and provide guidance for loved ones during difficult times.
Does an estate plan need to be updated?
Yes. Estate plans should be reviewed and updated when major life events occur or when laws change.
Should I use an attorney for estate planning?
Many people benefit from professional guidance, especially if their family or financial situation is complex or if they want confidence their documents are legally sound.