Written By Caitlin Allard, CFP^®, EA

July 1, 2025

When people hear the term estate planning, many assume it’s something only the wealthy need to worry about. In reality, estate planning is an essential part of financial planning for nearly everyone—regardless of age, income, or assets.

At its core, estate planning is about making sure your wishes are honored and your loved ones are protected if something happens to you. Here’s what you need to know to get started.

What Is Estate Planning?

Estate planning is the process of arranging for the management and distribution of your assets in the event of your death or incapacity. A good estate plan ensures:

• Your assets go to the people or causes you care about.
• Minor children are cared for by guardians you trust.
• Your medical and financial decisions are handled by someone you choose if you’re unable to make them yourself.
• Your loved ones avoid unnecessary legal costs, delays, and stress.

Documents in an Estate Plan

A basic estate plan typically includes the following documents:

• Will – Your will outlines who should inherit your assets and who should care for any minor children. Without a will, your state’s laws decide these matters—and the results may not align with your wishes.
• Power of Attorney (POA) – A POA allows someone you trust to manage your financial affairs if you’re unable to. This could include paying bills, managing investments, or handling real estate.
• Healthcare Proxy / Advance Directive – This document names someone to make medical decisions on your behalf and outlines your wishes for care (such as life support or organ donation) if you can’t speak for yourself.
• Revocable Living Trust (optional but powerful) – A trust can help avoid probate (the legal process of settling an estate), maintain privacy, and manage assets more flexibly—especially if you own property in multiple states or want to control how heirs receive their inheritance.

Beneficiary Designations Matter Too

Many accounts—like IRAs, 401(k)s, and life insurance— pass directly to named beneficiaries and aren’t controlled by your will. Keeping these designations up to date is a crucial part of estate planning.

Common Mistakes to Avoid

• Not having a plan at all. Dying intestate (without a will) can leave loved ones navigating a lengthy and frustrating legal process.
• Forgetting to update documents. Major life events —marriage, divorce, new children, retirement— should prompt a review.
• Overlooking digital assets. Think email accounts, social media, crypto wallets—your plan should include instructions for accessing and handling these. Assuming estate planning is “set it and forget it.” Laws and family situations change. An estate plan should be reviewed every few years or after major life changes.

The Bottom Line

Estate planning isn’t just about distributing assets—it’s about peace of mind. It’s a way to care for the people you love and to ensure your intentions regarding your legacy are carried out.

Please reach out to your trusted advisor with any questions.

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. We suggest that you discuss your specific situation with your financial advisor prior to investing. All performance referenced is historical and is no guarantee of future results.

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Dollar cost averaging involves continuous investment in securities regardless of fluctuation in price levels of such securities. An investor should consider their ability to continue purchasing through fluctuating price levels. Such a plan does not assure a profit and does not protect against loss in declining markets.

All investing involves risk including loss of principal. No strategy assures success or protects against loss.