There’s only one thing less enjoyable than thinking about your own mortality: actually making a plan for what happens after you pass away.
According to the 2025 Wills and Estate Planning Study from Caring.com, just 24% of Americans have a will — down from 33% in 2022. That means three out of four adults are leaving their loved ones with uncertainty and potential legal headaches during an already painful time.
Estate planning isn’t about fear. It’s about care. And getting started is often easier than people expect. Here’s what you need to know.
Why Estate Planning Matters
If you have any assets — a home, a retirement account, savings, a car, business income, digital property — you have an estate. And without a plan, a judge will decide what happens to it.
“Having ‘assets’ isn’t reserved for super wealthy people,” says Cathy Sikorski, Esq., an elder care lawyer and author of 12 Conversations: How to Talk to Almost Anyone About Long-Term Care Planning. “If you have a house or a 401(k), you are a person with assets. And if you don’t have a will or a trust, the state is going to decide who gets that property and in what proportions.”
Without legal clarity, families often face:
- Delayed access to funds
- Disputes among heirs
- Unexpected tax consequences
- Court-appointed guardians for minors
- Costly probate proceedings
But beyond legal and financial challenges, there’s the emotional reality.
“There’s a big difference between simply grieving the loss of someone and grieving while also having to sort through financial and legal chaos,” says Darla Bishop, DrPH, a financial wellness coach, author and adjunct professor at Michigan State University. “Estate planning is a gift of clarity to the people you love.”
READ MORE: Navigating the Complexities of Passing Generational Wealth
6 Essential Estate Planning Documents
A smart estate plan is more than just a single document. It’s a full tool kit — a combination of documents that work together to protect your wishes and make things easier for your family.
Here’s what you need.
A Will
A will outlines how you want your assets distributed and who will oversee that process. It allows you to:
- Designate an executor.
- State who receives which assets.
- Name guardians for minor children.
Even a basic will can prevent confusion and conflict later.
Power of Attorney
A power of attorney authorizes someone you trust to handle financial and legal matters if you become incapacitated — things like paying bills, managing accounts or making insurance decisions.
“Quite frankly, everyone should have a power of attorney once they turn 18,” Sikorski says. “It gives clarity about who can make essential decisions on your behalf if you can’t.”
Living Will and Advance Healthcare Directive
These two documents work together:
Both ensure that your medical care aligns with your values and relieves loved ones from making difficult decisions under stress.
Beneficiary Designation
Beneficiary forms on retirement accounts, pensions, annuities and life insurance override your will — a fact many people don’t realize.
This makes it essential to regularly update beneficiaries after major life changes like marriage, divorce or loss of a loved one.
Digital Assets Management System
Your digital life is part of your estate. A clear digital assets plan should include:
- Financial accounts: online banking, cryptocurrency, digital wallets
- Business assets: tax software, domain names, client files
- Personal records: emails, photos, medical portals, loyalty accounts
- Social profiles: social media accounts, memorial instructions
It should also include:
- Sign in credentials
- Instructions on access
- Legal permissions for your heirs
Bishop recommends keeping an updated list in an “In Case of Emergency” binder or using a password manager that allows legacy access for a trusted contact.
Different Types of Trusts
Trusts can help you (or a chosen trustee) manage and distribute your assets efficiently — and in some cases, avoid probate entirely.
Here are the major types:
- Revocable living trust: You can change it anytime. Assets remain legally yours while you’re alive, but they transfer smoothly to beneficiaries without probate when you pass.
- Irrevocable trust: Once established, it generally cannot be changed. The assets inside are no longer considered your property, which can offer protection from creditors and lawsuits.
- Living trust: This includes any trust created while you’re alive, rather than by your will.
- Testamentary trust: This is created through your will and activated only after your death. It is always irrevocable.
READ MORE: 6 Steps To Set Up a Simple Living Trust
How To Start Your Estate Plan (Without Breaking the Bank)
Most people delay estate planning because they assume it’s expensive or overwhelming. But getting started can be surprisingly simple — and often free.
Try these low-key steps:
- Check your beneficiaries. It costs nothing and takes minutes.
- Work on your digital assets plan. Start a simple list and refine it over time.
- Inventory your assets. “Write down what you have and where it is,” Sikorski says. “Then ask yourself: ‘If something happened to me tomorrow, what would someone need to know?’” An accounting of your assets can give you the confidence you need to get started on the more detailed paperwork.
- Review online templates. Free or low-cost templates can help you understand what you need before speaking with an attorney.
- Get referrals. Don’t assume you have to work with the first attorney you contact. Gather referrals, take advantage of free consultations and come prepared with your questions.
READ MORE: 8-Step Checklist To Help Organize Your Finances as You Age
The Estate Planning Gap: Why So Many Americans Delay It
Estate planning isn’t just avoided. It’s actively put off. Not because people don’t care, but because the emotional weight of the topic makes it easy to postpone.
In the 2025 Wills and Estate Planning Study, procrastination overwhelmingly topped the list of reasons people haven’t created a will or trust.
For many, that avoidance stems from fear. Sikorski recalls asking a friend if she’d started her estate planning. “She said she went online to do some research and got scared,” Sikorski says. “But that fear is exactly why planning matters — I’ve seen too many heartbreaking situations where families are left in chaos because someone put this off.”
On the other hand, certain life events can snap people into action, bringing urgency to the process. These include:
Moments like these highlight how quickly circumstances can shift — and why having a plan before you need it can reduce stress, protect your assets and simplify decisions later.
Next Steps: Building Confidence That Lasts
It’s easy to let estate planning fall by the wayside while you’re busy making other plans. But getting your estate plan in place is an act of radical self-care and love for your family that can help you feel calm, confident and in control.
“Once you’ve gone through this process, you feel like an adult,” Bishop says. “You feel like a real provider.”
To keep the momentum going and establish even more peace of mind, consider:
- Scheduling annual beneficiary reviews
- Updating your digital assets list quarterly
- Revisiting your will or trust every 3–5 years
- Communicating your wishes with family
- Keeping copies of documents in one secure, accessible place
Small, proactive steps make a big difference. And the sooner you begin, the sooner you’ll feel the relief of knowing your wishes — and the people who matter to you most — are protected.
READ MORE: How To Discuss Your Estate Plan With Adult Children
Estate Planning FAQ:
Q: What happens if I die without a will?
A: Your assets go through intestate succession, meaning the state decides how they’re distributed.
Q: Is probate always a bad thing?
A: Not necessarily. Probate is a normal legal process that may be required regardless of whether you have a will. In some cases, it can take a long time and be costly, but a well-crafted estate plan (including updated beneficiaries and trusts) can minimize how much of your estate goes through probate.
Q: Do I need a lawyer to create a will or trust?
A: No. Online templates can help you get the basics in place. But if you have property in multiple states, a blended family, a small business or specific inheritance wishes, speaking with an attorney can be a smart investment.
Q: What if I don’t have someone I trust to act as my executor or agent?
A: You can appoint a professional fiduciary, an attorney or a trusted advisor instead. These individuals can legally serve in roles where a family member or friend may not be the right fit.