Securing your family’s future isn’t just for “Downton Abbey types” or the ultra-wealthy. Estate planning is about ensuring that your assets reach the people you love, avoiding unnecessary legal battles, and relieving your family from having to make tough decisions during an already emotional time.  For this reason, I often refer to all estate planning as a love letter to your closest loved ones.

Imagine this, a thoughtfully prepared plan where all your family needs to worry about is cherishing your legacy, not sorting through complicated paperwork or legal proceedings. A solid estate plan is more than just financial organization; it’s a way to show how much you care, even when you’re not around.

This guide will help you create the ultimate estate planning checklist to future-proof your family and ensure peace of mind for everyone involved.

The Estate Planning Essentials Everyone Should Know

What Is Estate Planning?

Estate planning is the process of deciding what happens to your assets and dependents when you’re no longer able to care for them. It includes assigning who receives your property, making health care decisions, and appointing guardians for your children (or pets!).

Without a plan in place, the state will determine how your assets are distributed—and trust us, that’s a process you want to avoid.

Example: Think about Grandpa old fishing boat. He never left a will, and now it’s sitting in a garage because the family can’t agree on who inherits it. A little estate planning could have avoided the “Great Garage Feud of 2024.”

Who Needs an Estate Plan?

You might be thinking, “Do I even need this?” Yes!

• Young professionals: Estate planning ensures your digital assets and financial accounts go to the right people.
• Parents: Appoint guardians and create safeguards for your children and their future.
• Retirees: Ensure your wealth seamlessly passes to your loved ones without unnecessary taxation.
• College Students: Powers of Attorney are critical to have on file for a parents ability to help step in on their child's behalf

Nerd Note: Did you know that 67% of Americans don’t have a will? That’s a lot of unnecessary stress and lawyer fees for their families.

A Step-by-Step Checklist for Your Estate Plan

1. Make a List of Your Assets & Debts

This is the starting point of estate planning. Take stock of everything you own, big or small.

Here’s a quick breakdown of asset categories:

• Physical Assets: Homes, cars, jewelry, heirlooms.
• Financial Assets: Savings, retirement accounts, life insurance policies.
• Digital Assets: Email accounts, photos stored online, subscription services.

Nerd Note: Password services like LastPass now have the ability to nominate a secondary user rather than needing to write down/keep up with all credentials in a sheet, or worse, a pen and paper.

2. Choose Beneficiaries and Guardians

Decide who will inherit your assets and who will care for your children (or pets).  These beneficiaries should be coordinated between both your Will or Revocable Trust, as well as your beneficiary designations on your life insurance policies and retirement plans.

Here’s why asset titling matters:

• Tenancy in Common (TIC): Each owner owns a share, which doesn’t automatically transfer to the other owners upon death.
• Joint Tenancy with Right of Survivorship (JTWROS): The surviving owner inherits the property when one owner passes away.
• Transfer on Death (TOD)/Payable on Death (POD): Certain accounts allow you to name beneficiaries who automatically inherit the funds without going through probate.
• 529 Plans: For education savings, you can name a successor owner to take over in case you pass away.

Real-World Scenarios

Say you intended for your assets to be split equally between your two children. Your will reflects this decision. However, your retirement fund lists only one child as the beneficiary. Guess what? That retirement account skips the will and goes directly to the named beneficiary. This is why accounts and estate documents must work in harmony.

Nerd Note: Did you know outdated beneficiary designations (e.g., an ex-spouse) can unintentionally divert funds? Review your plans upon major life, job changes and ensure they are accomplishing the same overall objective.

3. Create a Legally Binding Will

A well-written will shows exactly who gets what and prevents state laws from taking charge of your estate.

You can choose from several types of wills, including simple wills or mirror wills for partners. Wills ultimately all need to go through the state's court system when being administered, which for anyone who is familiar with an Executor/executrix or has served as one, understand how arduous of a process this can be.

Probate Estate: A Brief Overview

Probate is the legal process through which a court validates a deceased person's will, settles their debts, and distributes their assets according to their wishes. A probate estate refers to the assets and property that go through this legal process.

Here are a few key points to keep in mind about probate estates:

• Time and Costs: Probate can be a time-consuming and costly process, often lasting several months or even years. Legal fees, court costs, and executor fees may also be incurred during this process.
• Public Process: Probate is a public proceeding, meaning that information about your estate, its value, and its beneficiaries becomes a matter of public record. This lack of privacy can be a concern for some individuals and families.
• Potential Challenges: Probate proceedings can sometimes lead to disputes or challenges from beneficiaries or creditors, which can further prolong the process and potentially deplete the estate's value.
• Avoiding Probate: Through proper estate planning, individuals can take steps to minimize the assets that go through probate. Strategies such as creating a living trust, designating beneficiaries on certain accounts, or holding property in joint tenancy can help bypass probate and streamline the distribution of assets.

Understanding the implications of probate estates and exploring options to minimize its impact can help ensure a smoother and more efficient transfer of assets to your loved ones.

Nerd Note: If you have a charity or religious institution that you would like to leave funds to, consider leaving a portion of your retirement account. These institutions do not pay income tax, whereas your human beneficiaries would. You can maximize your after tax legacy if you are mindful of who gets what type of asset!

4. Include a Medical and Financial POA

A Power of Attorney (POA) ensures that someone you trust makes vital decisions on your behalf if you’re incapacitated.

• Medical POA handles health care decisions.
• Financial POA manages your assets and financial responsibilities.

Example: Imagine being in a coma and your sibling stepping in to make medical decisions based on your wishes. POA makes this process seamless.

5. Write a Letter of Instruction

This is your chance to leave detailed, non-legal instructions, such as passwords, safe deposit box locations, or even your favorite recipes.

It’s okay if this feels personal, this letter is your way of adding a human touch to an otherwise formal process.  Some have also left recordings on a digital medium, but be careful if you choose this route as I have seen a number of heirs try to track down VHS players to listen to their families instructions.

6. Store and Communicate Your Plan

Create a “legacy drawer” for all essential documents. Share its location with trusted individuals, like your executor or family members.

Open communication ensures there’s no confusion or surprises later. It’s also a way to reassure loved ones about their roles and your intentions.

Common Mistakes to Avoid in Estate Planning

Even with the best intentions, some pitfalls can sidetrack your estate plan. Avoid these mistakes to stay on course:

• Not updating your plan after major life events, such as marriage, divorce, or the birth of a child.
• Failing to fund a trust- creating it isn’t enough; assets must officially be transferred into it.
• Overlooking digital assets, such as online banking or social media accounts.
• Not assessing your estate tax liability- with the estate tax at 40%, any assets above the lifetime and estate exclusion amount of $13.99M per individual and $27.98M per couple in 2025 are taxed. This amount will potentially cut in half depending on future legislation. If you're worth anywhere near these amounts, the cost of you not working with a qualified professional could be massive.
• Not having a "deep bench" of powerholders- Think baseball, 1st person up to bat is on the other side of the country, 2nd person does not have the time to help, 3rd person steps up and saves the day.
• Not keeping your plan up to date- Life is constantly changing, and so should your estate plan. Review and update it every 3–5 years or after significant life events.

Consequences of Not Planning

If you ignore estate planning, you’re not alone, plenty of people avoid it. But here’s the reality of what can happen when planning isn’t done:

• Prince & Aretha Franklin: Died without wills, leaving their loved ones embroiled in long, expensive legal battles.  When Prince passed away in 2016 without a trust or will, his family spent years in court battling over his estate. Proper planning could have avoided this entirely, and his $156 million estate wouldn’t be tied up in legal fees.
• Michael Jackson & Philip Seymour Hoffman: Had outdated or incomplete documents, leading to unintended disputes and expenses.

Don’t leave your legacy to chance.

Securing Your Peace of Mind

Taking the first steps toward estate planning can feel daunting, but it’s also one of the most thoughtful gifts you can give your loved ones.

Start small. List your assets or write down who you want as your beneficiaries. These initial steps snowball into a comprehensive plan that protects your family’s future.

Want personalized support in creating your estate plan? Connect with our HealthyFP experts to start protecting your family’s assets and maximize your legacy today.