Estate planning is uncomfortable (addresses incapacity and death) but essential; integrate it naturally into life/financial discussions for comprehensive planning.

Key Checklist of Must-Have Documents & Designations

1. Powers of Attorney (POA):
   • Financial & Healthcare POAs: Needed at age 18 (even for adult children, e.g., college prep). Parents lose decision rights post-18 without them.
2. Will:
   • Names executor; directs asset distribution at death.
   • Critical for parents: Only place to name guardians for minor children.
   • Works with trusts; "pour-over" will funnels forgotten assets into trust.
3. Revocable Trust:
   • Manages assets during life & at death; avoids probate.
   • Becomes irrevocable at death (can't change).
   • Complements (not replaces) a will.
4. Irrevocable Trusts (Lifetime):
   • For gifting assets (to spouse/kids) to reduce estate taxes.
   • Removes assets + future appreciation from estate.
   • Estate Tax Context: 2026 exemption rises to ~$15M/person ($30M/couple). Plan flexibly for future law changes; project asset growth vs. inflation/spending.
5. Other Documents (state-specific):
   • Living will/advance directive (end-of-life wishes).
   • Funeral arrangements.
6. Beneficiary Designations:
   • Override wills/trusts (e.g., IRAs, 401(k)s, life insurance).
   • Common Mistake: Outdated designations (e.g., ex-spouse or parent instead of kids) cause assets to go wrong.

Review & Update Best Practices

• Frequency: Every 3–5 years; or trigger by:
  • Life events (marriage, divorce, birth, death).
  • Law changes (e.g., recent tax bills).
• Pet Peeves/Common Errors:
  • Mismatched beneficiaries vs. will/trust.
  • Outdated successors (e.g., naming parents/siblings when kids are now adults; shift to children as agents/trustees).

Communication, Storage & Execution

• Sharing with Family: Family-specific; no one-size-fits-all.
  • Some share full details/drafts (à la Warren Buffett) for transparency.
  • Others share structure only (flow of assets, roles, advisors) without dollar amounts.
  • Ensure heirs know document locations, attorney, advisors.
• Successor Roles: Choose capable people; consider corporate trustee (fees apply, but justified for complex dynamics).
• Advisor Support: Professionals guide grieving families; nobody navigates alone.

Probate: Not as Bad as Feared

• Process: File will with court; appoint executor; notify creditors; resolve claims.
• Pros: Structured (good for family disputes/disharmony); time-bound creditor claims.
• Cons: Time/cost, but avoidable via revocable trusts.
• Goal: Avoid if possible, but not catastrophic.

Closing: Estate planning ensures control, minimizes regrets/taxes, and eases transitions. Review regularly; coordinate with financial plans.