September is National Estate Planning Awareness Month, making it the perfect time to tackle this often-postponed task. Estate planning isn’t just for the wealthy—it’s for anyone who wants to protect their loved ones and ensure their wishes are honored. If you’ve been putting this off, now’s the time to act.
Why Estate Planning Matters
Without an estate plan, state law decides who gets your assets and who makes decisions if you’re incapacitated. This process can be expensive, time-consuming, and may not reflect your wishes at all.
Estate planning gives you control. It protects your family from unnecessary stress and financial burden during already difficult times. It’s one of the most important gifts you can give your loved ones.
Essential Estate Planning Documents
Last Will and Testament: This document specifies who receives your assets and who will serve as guardian for minor children. Without a will, the state decides these critical matters.
Revocable Living Trust: A trust allows assets to pass to beneficiaries without going through probate, saving time and money. It also provides privacy—unlike wills, trusts aren’t public record.
Durable Power of Attorney: This designates someone to handle financial decisions if you become incapacitated. Without it, your family may need to go to court to manage your affairs.
Healthcare Power of Attorney and Living Will: These documents specify who makes medical decisions for you and what your wishes are regarding life-sustaining treatment.
HIPAA Authorization: This allows designated individuals to access your medical information. Without it, even close family members may be denied information.
Designate Beneficiaries on Financial Accounts
Here’s something many people don’t realize: Beneficiary designations on retirement accounts and life insurance policies override your will. You could leave everything to your spouse in your will, but if your ex-spouse is still listed as the beneficiary on your 401(k), that’s who gets it.
Review your beneficiaries regularly, especially after major life events like marriage, divorce, births, or deaths. Make sure they align with your overall estate plan.
Common Estate Planning Mistakes
The biggest mistake is having no plan at all. Over half of American adults don’t have a will, leaving their families to navigate a complicated legal process.
Outdated documents are nearly as problematic. An estate plan that doesn’t reflect your current life situation can create unintended consequences.
Don’t forget about digital assets—online accounts, cryptocurrencies, digital photos, and social media. Include instructions for accessing and managing these.
DIY estate planning documents often fail when they matter most. State-specific requirements and proper execution are critical. What you save on attorney fees could cost your family thousands later.
Estate Planning by Life Stage
Young Adults: Even without significant assets, you need healthcare directives and a power of attorney. Who will make decisions if you’re in an accident?
Married Couples/New Parents: Naming guardians for children is critical. Also establish trusts to manage assets for minors if something happens to both parents.
Growing Families: Update your plan as your family and assets grow. Review life insurance needs and adjust asset distribution plans.
Empty Nesters/Retirees: Focus on healthcare directives, long-term care planning, and tax-efficient wealth transfer strategies.
Understanding Estate Taxes
The federal estate tax exemption is $13.99 million per individual in 2025 (nearly $28 million for couples). Most families won’t owe federal estate taxes.
However, some states have their own estate or inheritance taxes with much lower thresholds. Know your state’s rules.
For larger estates, strategic planning can minimize tax burdens. Trusts, charitable giving, and lifetime gifting strategies all play a role.
When to Update Your Estate Plan
Review your estate plan after any major life event: marriage, divorce, birth of children or grandchildren, death of a beneficiary or executor, or significant changes in assets.
Moving to a new state requires review, as estate laws vary. Some documents may need to be redrafted to comply with your new state’s requirements.
Even without major changes, review your estate plan every 3-5 years. Laws change, and your circumstances evolve.
Don’t Leave Your Family Guessing
Estate planning is an act of love. It protects your family from confusion, conflict, and unnecessary expense during an already emotional time. This September, take control of what happens to everything you’ve worked to build.
See if we’re right for you to ensure your estate plan is comprehensive, up-to-date, and coordinated with your overall financial strategy. Let’s make sure your legacy is protected and your wishes are honored.
