What is estate planning?

Estate planning involves creating a legal strategy for what happens to your assets — your money, possessions, and dependents — after you pass away. It typically includes documents such as a will, trust, power of attorney, and healthcare directives. These tools ensure your wishes are honored and help minimize confusion, conflict, and financial burden for your family.

Despite its importance — 83% of Americans recognize estate planning as important – only 31% have a will.¹ Procrastination and misconceptions about wealth continue to delay action.

Why estate planning matters

If you die without an estate plan, your family may face legal complications, emotional stress, and financial uncertainty. State laws will determine how your assets are distributed, which may not align with your wishes. This can lead to disputes among heirs and delays in settling your estate.

Estate planning is a proactive way to reduce this burden. It’s a reflection of family-first thinking — ensuring your loved ones are cared for, and your legacy is preserved.

Tailor your plan with this checklist

Every estate plan should be tailored to your unique circumstances. Here’s a checklist to guide your planning:

1. Clarify your goals: What kind of legacy do you want to leave? Consider your values, charitable interests, and family needs.

2. Estimate your estate’s value: Include all assets for tax purposes and determine what you want to pass on.
3. Create a net worth statement: Work with a financial professional to create a net worth statement with your financial assets, such as:
   • Retirement accounts (401(k), IRAs)
   • Life insurance policies
   • Stocks, bonds, mutual funds
   • Bank accounts
   • Real estate
   • Collectibles or digital assets
4. Explore employer benefits: Some companies offer legal services or estate planning resources.
5. Account for life changes: Update your plan after marriage, divorce, birth/adoption of a child, or the death of a loved one.
6. Plan for special needs: If you have a dependent with special needs, consult an attorney about trusts and guardianship.
7. Review tax laws: The federal estate tax exemption in 2025 is $13.99 million per person, and $27.98 million for married couples. In 2026, it will increase to $15 million per person.²

Additional estate planning considerations

• Depending on your estate’s complexity, you may need to include:
• Will: The will is one of the primary elements of your plan. It directs how your assets are distributed.
• Trusts: This helps minimize taxes and provides control over asset distribution.
• Healthcare directives: It’s important to outline your medical preferences if you become incapacitated.
• Life insurance: Make sure your policies are current, and beneficiaries are updated.
• Beneficiaries: Make sure your beneficiaries are up to date.
• Guardianship designations: If you have minor children, name guardians and review regularly.

Emerging trends in estate planning

Estate planning is evolving. Here are some notable shifts to consider:

• Digital assets: More Americans are including cryptocurrency, social media accounts, and cloud-stored data in their plans.³
• Pet care: 62% of people believe pets should be included in estate plans, with Gen Z leading the charge.¹
• AI tools: 20% of Americans trust AI-generated legal advice more than human attorneys, and 34% trust it equally.¹
• Executor choices: Younger generations increasingly choose trusted friends or professionals over family members.¹

Consult a professional

Estate planning involves complex decisions — whether to establish a trust, minimize taxes, or plan for a dependent’s care. A qualified estate planning attorney or financial professional can help you navigate these choices and help ensure your plan aligns with current laws and your personal goals.

Proper preparation is more than a legal necessity — it’s a final gift to your family. Planning offers peace of mind, reduces stress, and ensures your legacy lives on the way you intend.