Core estate planning documents
- Will: says who inherits and names an executor and guardians for minor children.
- Revocable living trust: holds assets during your life and can pass them on without probate.
- Durable power of attorney: lets someone manage your finances if you can't.
- Healthcare directive and healthcare power of attorney: set out your medical wishes and who decides for you.
- Beneficiary designations on retirement accounts and life insurance, which pass outside your will.
Taxes
The federal estate tax only affects very large estates, but some states charge their own estate or inheritance tax at much lower thresholds. An estate planning lawyer can explain the rules in your state.
Questions to ask a wills & estate planning lawyer
- Do I need a trust, or will a will do the job for my situation?
- How will my plan affect estate or inheritance tax?
- Do you keep the original documents, and is there a charge for updates later?
- What happens to retirement accounts and life insurance that already name beneficiaries?
Frequently asked questions
Do I need a trust or just a will?
It depends on your assets, your state's probate process, and whether you want privacy or ongoing management of assets for beneficiaries. Many people with simple estates only need a will.
How much does an estate plan cost?
Many lawyers charge flat fees, for example for a will-based plan or a trust-based plan. Trust-based plans usually cost more.
How often should I update my will?
Review it every few years, and after major life events such as marriage, divorce, the birth of a child, or buying property.