Estate Planning Guide (with Checklist for 2025)
Whether you own a house, have a partner or children, or simply want to be prepared in case of a medical emergency, having an estate plan can make things a lot easier for your loved ones.
This guide provides a clear overview of estate planning, from essential documents to smart strategies that can save your family time, money, and stress — with a checklist to keep you organized.
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Estate planning: definition & overview
Estate planning is the process of deciding what happens to your assets and responsibilities when you can’t manage them yourself, and expressing that plan through legal documents.
Most people associate estate planning with drafting wills and trusts, but it also covers medical emergencies that might leave you unable to do things like manage your finances, care for your children, or make your own medical decisions, whether temporarily or permanently.
An estate plan isn’t just about distributing property — it’s about being ready for anything and making things easier for the people you care about.
Your estate plan can:
- Protect your loved ones from unnecessary stress and expense
- Maintain privacy around your financial affairs
- Minimize taxes and legal complications
- Provide clear guidance for medical decisions
Why estate planning matters (for everyone)
Many people think estate planning is only important if you’re wealthy, but it really applies to everyone. If your finances aren’t very complicated, that can make your estate plan simpler, but it’s still a good idea to have one.
- If you’re ever unable to make decisions for yourself, even temporarily, it’s best to have clear legal documents that lay out who you want to make decisions for you and what choices you want them to make.
- If you live with a partner or friend, it’s important to think about what they might need to know if they suddenly had to take care of all the day-to-day things you usually take care of, even for a while.
- If you have any minor children or pets, it’s important to lay out a clear plan for their care with the appropriate legal documentation.
Even a simple estate plan can make a world of difference for the people you care about.
Planning for emergencies
A comprehensive estate plan gives your loved ones the legal authority to manage your affairs and make medical decisions for you if you’re temporarily unable to decide for yourself. It also makes it very clear what you want those choices to be.
As hard as it would be for your loved ones to deal with that situation, it would be even harder if they weren’t sure what you wanted.
What happens if you die without an estate plan?
When someone dies without a will or formal estate plan (called dying “intestate”), their assets go through a court-supervised process in which state laws determine who gets what.
This can lead to outcomes you wouldn’t have chosen, like:
- Your spouse having to share inheritance with other relatives
- Your assets going to distant relatives instead of close friends or charities
- Your children receiving their entire inheritance at 18
- Your pet’s future being decided by the courts
The problem with probate (why a will isn’t always enough)
Even if you have a will, your estate has to go through “probate” — the legal process of validating a will and distributing assets after someone dies.
Unfortunately, probate can sometimes take months or even years. During that time, your loved ones can’t always get access to the money or property they need, and legal costs can eat up a good chunk of your estate.
That’s why estate planning often includes various legal ways to remove property from your estate — so it can change hands upon your death without having to go through probate.
What’s in your estate and what isn’t
Your estate generally includes everything you own at death, but certain kinds of property (or “assets”) follow different rules. Understanding which assets are part of your estate — and which aren’t — can help you plan more effectively.
Property that falls outside your estate
Certain assets bypass your estate (and your will) and go directly to named beneficiaries. These typically include life insurance policies, pensions, retirement accounts like 401(k)s and IRAs, joint bank accounts with right of survivorship, and real estate with right of survivorship.
“Right of survivorship” means that if one of you dies, the other one owns the account or property automatically, without going through probate. Transfer-on-death (TOD) designations on vehicles or investment accounts also skip the probate process.
Certain kinds of trusts can also remove property from your estate, allowing the property in the trust to change hands upon your death without the need for probate.
Property that’s subject to probate
Just about everything else has to go through probate. This includes personal property, vehicles, bank accounts, and real estate — anything that doesn’t have a named beneficiary (like an insurance policy), that isn’t owned by right of survivorship (or transfer-on-death designation), and that isn’t in a trust.
Even small bank accounts can get tied up in probate if they aren’t properly designated.
So can a business. If you own all or part of a business, your ownership in that business will become part of your estate unless you’ve planned ahead to make sure it doesn’t.
Key documents and information in estate planning
This checklist goes beyond the standard documents you might receive from an attorney. It includes all the information that’s useful in the early days after a death or significant medical emergency in the family.
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Passwords and logins
Make sure your family and executor can access important accounts.
Estate team
This is the group of people who can help during the first month to take over day-to-day household responsibilities and plan for the transition of assets.
Family to notify
A list of people to notify will be tremendously helpful to your executor and loved ones.
Employer and other organizations
List any organizational contacts who should be informed right away, like an employer or your local volunteer and community organizations.
Care instructions for people and pets
Include a care plan for your children or other dependents, including any pets or other animals.
Household finances
Create a short list of key financial responsibilities to maintain your household, including your home and other regular payments.
Legal documents
Make sure everyone knows these legal documents are in place and where to find the latest official versions. Be sure to delete any other versions or clearly mark them as out of date.
IDs
Loved ones might need to present identification information to close accounts or do other business.
Pre-arranged plans for your service
If there are plans in place for final services, ceremonies, or burial, include those too.
Wishes
Be sure to include all of your formal intentions in your will and other legal documents. However, it can also be helpful to add thoughts, letters, or more detailed notes — like where to find your spare key — or information about special items, such as a keepsake you bought on your honeymoon or any items you inherited from past generations.
Managing your estate plan
Estate planning isn’t a set-it-and-forget-it activity. Be sure to keep things up to date and share any changes with the people who need to know about them.
Keeping your documents up to date
Life changes — your estate plan should too. Major events like marriage, divorce, births, deaths, or significant changes in your assets (like buying or selling a home) should trigger a review of your plan.
Even without major changes, it’s smart to review your documents every few years to make sure they still reflect your wishes and comply with current laws.
Sharing your estate plan with your loved ones
Having an estate plan is only half the battle — your loved ones also need to know about it and understand your wishes. While you don’t need to share every detail, make sure key people know:
- Where to find important documents
- Who to contact in an emergency
- Their roles and responsibilities
- Your general wishes and values
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FAQs about estate planning
Still have questions? Here are some of the most frequently asked questions about estate planning, with quick answers in a nutshell.
Can I create a DIY estate plan?
While it’s possible to create basic estate planning documents yourself, working with an experienced attorney helps ensure that your documents are legally valid, that they accomplish what you’re trying to accomplish, and that you’ve thought through everything you need to consider.
Some documents, like basic wills, can be created using online tools, but more complex situations — from blended families to business ownership — usually require professional guidance. And remember, a will is not a complete estate plan.
How often should I review my estate plan?
As a general rule, review your estate plan every 3–5 years as well as after any major life changes. These might include marriage, divorce, births, deaths, moving to a new state, buying or selling a home, starting a business, changing employers, inheriting a large amount of money (or other big changes in your assets), or updates to tax laws.
Regular reviews can help you make sure your plan continues to protect your loved ones and reflect your current wishes.
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