Estate planning isn’t just for the wealthy—it’s essential for anyone who wants to protect their loved ones, reduce stress during difficult times, and leave a lasting legacy. Whether you're nearing retirement or simply thinking ahead, having the right legal documents in place ensures your wishes are honored and your assets are handled efficiently. Here are the core tools every estate plan should include:
Will vs. Trust: Which Do You Need?
A will is a foundational document that outlines how your assets should be distributed after your death. It also allows you to name guardians for minor children. However, wills must go through probate—a public, court-supervised process that can be time-consuming and costly.
A revocable living trust, on the other hand, can bypass probate entirely, offering faster distribution, greater privacy, and potentially lower legal fees. Trusts are especially useful if you own property in multiple states or wish to set conditions on how and when your heirs receive their inheritance.
Many comprehensive estate plans include both a will and a trust to cover all bases.
Power of Attorney: Planning for the Unexpected
What happens if you become incapacitated and can't make decisions for yourself? This is where a power of attorney (POA) becomes crucial. A durable POA allows someone you trust to manage your finances and legal matters if you're unable to do so.
It’s also wise to have a separate healthcare power of attorney (or healthcare proxy) to authorize someone to make medical decisions on your behalf, as well as a living will to outline your end-of-life care preferences.
Tax Considerations for Heirs
Federal estate taxes apply only to large estates (in 2025, the exemption is over $13 million per person), but state taxes and income tax on inherited assets can still affect your heirs. For example, inherited IRAs are now subject to a 10-year withdrawal rule for most non-spouse beneficiaries, potentially increasing their tax burden.
Strategies like Roth IRA conversions, charitable giving, or structuring trusts can help reduce these tax implications and preserve more wealth for the next generation.
Legacy planning is about more than just passing on assets—it's about passing on values, minimizing conflict, and providing peace of mind for those you love. By putting the right estate planning tools in place today, you’re laying the groundwork for a smoother, more meaningful transition tomorrow.
Need help getting started? Our team specializes in legacy-focused planning that integrates estate, tax, and retirement strategies to protect what matters most.