Estate Planning Essentials
Wills, trusts, beneficiaries, and power of attorney. The basics of making sure your money goes where you want it to when you're not around.
“Estate planning isn't for rich people. It's for anyone who has stuff and doesn't want the government to decide who gets it.”
What you'll learn
A will is the bare minimum. Names who gets your stuff (beneficiaries), who handles it (executor), and who cares for your kids (guardian — critical if you have minor children). Without a will, state law decides everything.
Trusts avoid probate (public, slow, expensive). A revocable living trust holds your assets, you control it while alive, and your successor trustee distributes it on your terms without court involvement.
Beneficiary designations on retirement accounts, life insurance, and bank accounts override your will. Keep them updated. Your ex-spouse probably shouldn't still be your 401(k) beneficiary.
Power of attorney (financial) and healthcare proxy/advance directive let someone act for you if you're incapacitated. Everyone over 18 should have both. Cost: ~$200-500 with a lawyer, less with online services.