Section 6 of 7
Estate Planning
Estate planning is not about being wealthy or old, it is about being responsible. Without these documents in place, courts and strangers make decisions about your money, your medical care, and your digital life. Every adult over 18 needs at least the basics. This section tells you exactly what those basics are and how to get them done.
Estate Planning Readiness Checklist
Six items that form a complete foundation. Check each off as you complete it.
Most young adults have none of these in place, and most older adults are missing at least two. This is the full checklist of what a basic but complete estate plan looks like. Each item below links to a tool or explanation elsewhere in this section. Work through them in order if you are starting from scratch.
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Items completed
Check off each item as you complete it.
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Last Will & Testament
Most critical if you have minor children — a will is the only way to legally designate a guardian. Also important if you have significant assets, specific wishes, or a pet. If you are a young adult with only bank and retirement accounts and current beneficiary designations, those designations handle most asset transfers without a will, but a will is still recommended for the protection it provides.
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2
Durable Power of Attorney (Financial)
This document names someone to manage your financial affairs, paying bills, accessing accounts, filing taxes, if you become incapacitated. Without it, even a spouse may need to go to court to access your accounts. "Durable" means it stays in effect even if you are incapacitated.
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3
Healthcare Proxy / Medical Power of Attorney
Names someone to make medical decisions on your behalf if you cannot make them yourself, due to accident, surgery, or illness. This is a different document from the financial DPOA. Many states have free standardized forms for this. Every adult needs one.
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4
Living Will / Advance Directive
Documents your specific wishes about medical treatment if you are in a terminal condition or persistent vegetative state, including your wishes about life support, resuscitation, and organ donation. This removes an enormous burden from your family during an impossible moment.
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5
Beneficiary Designations Reviewed and Updated
Beneficiary designations on retirement accounts, life insurance, and bank accounts override whatever your will says. A will cannot redirect a 401(k) with an outdated beneficiary designation. Every account that allows a beneficiary designation should have one, with both a primary and a contingent.
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6
Digital Estate Plan in Place
Your digital life, email, social media, banking apps, crypto, subscriptions, cloud storage, needs a plan too. This means a password manager set up, a trusted person who knows how to access it, and decisions made about what happens to your online accounts after you die.
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Beneficiary Designations Audit
The most overlooked estate planning task, and the one that matters most for most people under 50.
Beneficiary designations are the legal instructions attached directly to each financial account telling the institution who receives the money when you die. They are legally binding and completely bypass probate court. They also override your will, so an outdated designation naming an ex-partner or deceased family member cannot be undone by a will that says something different. Check and update each type of account below.
Primary vs. Contingent Beneficiaries: Name a primary beneficiary (first in line) and a contingent beneficiary (backup if the primary predeceases you or disclaims the inheritance). Skipping the contingent means the account falls into your estate and goes through probate if the primary cannot inherit.
Retirement Accounts
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401(k) or 403(b), primary and contingent beneficiary named
Log in to your plan provider (Fidelity, Vanguard, Schwab, etc.) and review under Account Settings or Beneficiaries. Your spouse must be primary beneficiary unless they sign a waiver.
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Traditional IRA, primary and contingent beneficiary named
If you have multiple IRAs, check each one separately, designations do not carry over between accounts. A named beneficiary avoids the 10-year forced distribution rule in some cases.
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Roth IRA, primary and contingent beneficiary named
A Roth IRA inherited by a spouse has unique flexibility, they can treat it as their own. Non-spouse beneficiaries must follow the 10-year rule under SECURE 2.0.
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HSA (Health Savings Account), beneficiary named
If your spouse is the beneficiary, they inherit the HSA as their own tax-free. Any other beneficiary receives it as taxable income. A named beneficiary avoids probate.
Insurance
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Life insurance policy, primary and contingent beneficiary named
Contact your insurer or log into your policy portal. If you have employer-provided group life insurance, the designation is separate from any private policy you hold.
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Employer group life insurance, beneficiary updated with HR
Many people set this up on their first day of work and never revisit it. After any major life change (marriage, divorce, death of a named beneficiary), update this immediately.
Bank and Brokerage Accounts
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Checking and savings accounts, POD (Payable on Death) beneficiary added
Ask your bank to add a POD designation to your accounts. This is free, takes 10 minutes, and lets the funds transfer directly to your beneficiary without probate.
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Taxable brokerage account, TOD (Transfer on Death) beneficiary added
Most major brokerage firms (Fidelity, Schwab, Vanguard, Robinhood, etc.) allow TOD designations. Call or log in to set it up. Inherited brokerage accounts receive a step-up in cost basis, which eliminates capital gains on unrealized growth at the time of death.
The Four Core Estate Planning Documents
What each document does, who it protects, and how to get it done.
A complete basic estate plan requires four documents. A will handles what happens after you die. The other three handle what happens if you are alive but incapacitated, which, statistically, is more likely at a young age. You can complete all four online through estate planning services, or with a local estate attorney for more complex situations.
When to Consider a Trust
A trust is not just for the wealthy — it may be right for you sooner than you think.
A revocable living trust goes beyond what a will can do. Assets held in a trust pass directly to your beneficiaries without going through probate court — which can be slow, public, and costly. A trust also gives you more control over how and when assets are distributed. If any of the following apply to you, it is worth having a conversation with an estate attorney about whether a trust makes sense.
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You own real estate
Real property passes through probate unless held in a trust or titled jointly. A trust keeps real estate transfers private and avoids the court process entirely.
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You have significant assets ($100,000–$200,000+)
At this level, the cost and delay of probate becomes meaningful. A trust lets your estate transfer efficiently — without court involvement — and keeps your financial affairs private.
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You have young children
A trust lets you specify exactly when and how your children receive assets — at age 25, in stages, for education only, and so on. A will alone cannot control timing of distributions to minors. Without a trust, a court-appointed custodian manages the money until age 18, with no restrictions on how it is spent after that.
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You have a pet
Pets cannot legally inherit assets, but a pet trust allows you to set aside funds for their care and name a caregiver. Without one, there is no enforceable legal mechanism to ensure your pet is cared for the way you would want.
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You have specific wishes for how your assets are used
If you want assets directed toward a specific purpose — a child's education, charitable giving, supporting a family member with special needs — a trust gives you the legal framework to make those wishes enforceable rather than simply expressed.
You may not need a trust right now if you are a young adult with primarily bank and retirement accounts, current beneficiary designations on every account, and no real estate or dependents. Your beneficiary designations handle most of the transfer work. Revisit this question as your assets grow, your family changes, and your wishes become more specific.
Digital Estate Planning Checklist
Your digital life needs a plan too, email, social, financial apps, cloud storage, crypto.
Most people's financial and personal lives exist almost entirely online. Without a digital estate plan, those accounts may be inaccessible forever, or worse, left open indefinitely with no one managing them. A solid digital estate plan has two parts: a secure way to pass on access, and documented decisions about what happens to each type of account.
Step 1, Set Up a Password Manager
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Choose and set up a reputable password manager (1Password, Bitwarden, Dashlane)
A password manager stores credentials for every account in one encrypted vault. Bitwarden is free and open-source. 1Password is $36/year. This is the single most important step in digital estate planning.
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Store your master password somewhere trusted loved ones can access, not digitally
Write your master password on paper and store it with your other estate documents (or in a fireproof safe). Some password managers also support emergency access, enable this feature for your designated contact.
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Add all critical accounts to your password manager
Start with: email, bank accounts, brokerage, retirement portals, insurance, utilities. You do not need every account, prioritize ones with financial or sentimental value.
Step 2, Document Decisions for Each Account Type
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Email, decide whether to delete or memorialize, tell your executor where to find credentials
Gmail offers Inactive Account Manager to automatically share or delete your account. Outlook has a next-of-kin request process. Your executor needs access to email to receive death certificate requests, cancel subscriptions, and notify institutions.
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Social media, set up legacy contacts or memorialization preferences
Facebook: set a Legacy Contact under Settings. Instagram: can be memorialized or removed via a request. LinkedIn: designate someone to request removal. Twitter/X: a next-of-kin request process exists. TikTok: account removal request only. Make your preference known in your letter of instruction.
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Financial accounts, ensure your executor can access statements and close accounts
Your executor needs the ability to notify financial institutions, transfer or close accounts, and cancel subscriptions. Access through your password manager plus copies of account statements is usually sufficient.
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Cryptocurrency, document wallet addresses, exchange accounts, and seed phrases securely
Crypto is lost forever if no one has access to it. Hardware wallet seed phrases should be written down (never stored digitally) and kept with your most secure estate documents. Even a small amount of crypto warrants explicit documentation.
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Cloud storage, note location of important files (photos, videos, creative work)
Google Photos, iCloud, Dropbox, OneDrive, document which services hold what. Some platforms allow sharing or transfer; others terminate the account and all contents. Irreplaceable files should be backed up to a physical drive as well.
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Subscriptions, leave a list so your executor can cancel recurring charges
Streaming, gym memberships, software subscriptions, and Amazon Prime can continue charging your estate for months. A list (or simply a review of your bank/credit card statements) makes cancellation straightforward.
Letter of Instruction
Not a legal document, but often the most useful thing you leave behind.
A letter of instruction is a plain-language guide for your loved ones and executor. It tells them where everything is, who to call, and what you wanted, without requiring them to decode legal documents under stress. It is not legally binding, which means it can be informal, updated easily, and as personal as you like. Fill in what you can and return to update it over time.
Privacy note: This information is saved only in your browser's local storage, it never leaves your device. When you are finished, use your browser's Print function (Ctrl/Cmd + P) to save or print a copy and store it with your estate documents. Do not include passwords here, use your password manager for those.
My Information
Key Documents, Where to Find Them
Financial Accounts
Key Contacts
Final Wishes and Personal Notes
Last updated: Not yet set · This document is not legally binding. For legal effect, consult a licensed estate attorney.
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Security reminder: Do not write your Social Security number, account passwords, PINs, or any sensitive credentials anywhere in this document. Record only locations and contact information. Store sensitive credentials in a password manager or locked safe — not in any printed document.