Estate planning guide: wills, trusts, beneficiaries and what to do first

• Will: names guardians for children and directs assets that are not otherwise titled

• Durable power of attorney: lets someone manage money if you are incapacitated

• Healthcare directive and proxy: states medical wishes and names a decision maker

• Revocable living trust: holds property so it passes outside probate

Retirement accounts, life insurance and payable-on-death bank accounts pass by beneficiary designation, whatever the will says. An out-of-date designation naming an ex-spouse is the single most common estate planning failure.

Review designations after every marriage, divorce, birth or death in the family.

• List assets, debts and how each account is titled

• Update beneficiary designations on every retirement and insurance account

• Draft the will, power of attorney and healthcare directive

• Decide whether a revocable trust is worth the setup cost in your state

• Store the documents somewhere your executor can actually reach

What is estate planning?

Estate planning is arranging in advance how your assets transfer and who makes financial and medical decisions if you cannot. It covers wills, trusts, powers of attorney, healthcare directives and beneficiary designations.

At what net worth do you need estate planning?

Any adult with children, property or retirement accounts needs the basic documents. Trusts and tax-driven strategies become relevant with real estate in several states, business interests or estates approaching the federal exemption.

How much does estate planning cost?

Do I need an attorney for estate planning?

Online tools can produce a valid simple will in many states. Blended families, business interests, special-needs beneficiaries or property in multiple states justify an attorney.

How often should an estate plan be reviewed?

Every three to five years, and immediately after a marriage, divorce, birth, death, move to another state or a large change in assets.