Estate planning is often misunderstood as something reserved for the wealthy or elderly, but in reality, it’s a crucial step for everyone. Whether you have substantial assets or just a few things you want to ensure are handled properly, an estate plan gives you control over your legacy and eases the burden on your loved ones.

Despite its importance, only 33% of Americans have an estate plan, according to LegalZoom. This leaves the majority unprepared for unexpected events, potentially causing confusion, stress, and financial strain for their families.

While most people are familiar with wills and trusts, there are many other aspects of estate planning that often go overlooked. This checklist covers the essentials and highlights the less obvious but equally important steps to ensure your estate plan is thorough and effective.

General Estate Planning Essentials

Before diving into the finer details, make sure your estate plan covers the basics:

1. Create a Will: A will is the cornerstone of any estate plan. It outlines how your assets will be distributed and who will care for minor children if applicable.
2. Establish a Trust (if needed): A trust can help avoid probate, provide more control over how and when your assets are distributed, and reduce estate taxes.
3. Name a Power of Attorney (POA): A POA designates someone to make financial or legal decisions on your behalf if you’re incapacitated.
4. Appoint a Healthcare Proxy: This individual will make medical decisions for you if you’re unable to do so.
5. Update Beneficiary Designations: Ensure that retirement accounts, life insurance policies, and other payable-on-death accounts have current and accurate beneficiaries.

Other Aspects of Estate Planning That Often Go Overlooked

1. Digital Assets

In today’s world, your digital footprint is just as important as your physical assets. Failing to plan for digital assets can leave loved ones unable to access important information or accounts.

What You Need to Do:

1. Inventory Your Digital Assets: Make a list of email accounts, social media profiles, cloud storage, subscription services, and digital wallets.
2. Document Login Information: Store usernames and passwords securely using a password manager or written document in a safe place.
3. Assign a Digital Executor: Some states allow you to name a digital executor in your will to handle your online accounts.
4. Specify Instructions: Decide whether accounts should be closed, transferred, or archived, and include these preferences in your plan.

Without a plan, your family could struggle to access these accounts or risk losing sentimental digital assets like photos and videos.

2. Letters of Instruction

A will outlines the legal distribution of your assets, but a letter of instruction provides personal guidance for handling your affairs. While not legally binding, it can be invaluable to your executor and family.

What to Include in a Letter of Instruction:

1. Contact information for key people, such as your attorney, financial advisor, and family members.
2. Detailed instructions for accessing important documents, safe deposit boxes, and online accounts.
3. Preferences for your funeral, burial, or memorial service.
4. Instructions for managing specific assets, such as heirlooms, artwork, or collectibles.

This document can help ensure nothing is overlooked and that your wishes are carried out smoothly.

3. Guardianship and Pet Care

If you have minor children or pets, planning for their care is one of the most important aspects of estate planning.

Steps to Take:

1. Name a Guardian for Your Children: Choose someone you trust and discuss your decision with them beforehand. Include a backup guardian in case your first choice is unable to fulfill the role.
2. Set Up a Pet Trust: Allocate funds and designate a caregiver for your pets. This ensures they’ll be cared for according to your wishes.
3. Provide Specific Instructions: Outline details such as education preferences for children or routines and dietary needs for pets.

Failing to plan for dependents can leave their care up to the court, which may not align with your preferences.

4. End-of-Life Planning

Discussing end-of-life decisions can be uncomfortable, but having a clear plan in place can reduce stress for your family during difficult times.

Documents to Prepare:

1. Advance Directive: Specify your medical care preferences, such as resuscitation, life support, and organ donation.
2. Do Not Resuscitate (DNR) Order: Indicates your wishes regarding resuscitation in emergencies.
3. Funeral Pre-Arrangements: Pre-paying or outlining your funeral preferences can ease financial and emotional burdens on your family.

These documents ensure that your wishes are honored and that loved ones aren’t left guessing about your preferences.

5. Regular Reviews and Updates

An estate plan is not a one-time task. Life events and legal changes can impact your plan, so regular reviews are essential to keep it relevant.

When to Review Your Plan:

1. After major life events, such as marriage, divorce, the birth of a child, or the death of a loved one.
2. If your financial situation changes significantly, such as receiving an inheritance or selling a business.
3. Every 3–5 years to ensure everything is up to date with current laws and your wishes.

Regular updates prevent outdated information from causing confusion or disputes.

6. Tax Implications

Estate taxes and other financial considerations can significantly impact your heirs. Proper planning can minimize these burdens.

Key Strategies:

1. Understand Current Estate Tax Exemptions: The Tax Cuts and Jobs Act (TCJA), enacted in 2017, significantly raised the federal estate tax exemption, which is now $13,990,000 for 2025. However, this higher exemption is set to expire at the end of 2025 unless Congress takes action to extend it, potentially reducing the exemption to pre-TCJA levels (around $5 million, adjusted for inflation). This uncertainty could affect estate plans for high-net-worth individuals.
2. Use Gifting Strategies: Take advantage of the annual gift tax exclusion, currently $17,000 per recipient, to reduce your taxable estate.
3. Consider Trusts: Trusts can help minimize estate taxes by allowing you to transfer assets outside of your taxable estate.
4. Plan for State Taxes: Some states impose their own estate or inheritance taxes with lower exemptions, so it’s important to account for local laws.

Without proper tax planning, your heirs may face unexpected costs that could reduce their inheritance.

Websites That Simplify Estate Planning

Estate planning can feel overwhelming, but several online platforms make the process more accessible and affordable. These services guide you through creating essential documents, ensuring your estate plan is legally valid and tailored to your needs. Here are some popular options:

LegalZoom

1. What It Offers: LegalZoom provides an easy way to create wills, trusts, and other estate planning documents. Their platform also offers consultations with licensed attorneys for personalized advice.
2. Why It’s Useful: Great for beginners and those who want professional assistance without high legal fees.
3. Visit LegalZoom

Trust & Will

1. What It Offers: Trust & Will specializes in creating modern, state-specific wills and trusts. They also help with healthcare proxies and power of attorney documents.
2. Why It’s Useful: The platform is intuitive, affordable, and designed to cater to both individuals and families.
3. Visit Trust & Will

Nolo

1. What It Offers: Nolo provides DIY legal forms for estate planning, including wills, living trusts, and advance directives. They also offer legal guides to help users understand their options.
2. Why It’s Useful: Ideal for those comfortable with a DIY approach and looking for cost-effective options.
3. Visit Nolo

Quicken WillMaker & Trust

1. What It Offers: Quicken WillMaker & Trust is a downloadable software that allows you to create wills, trusts, and healthcare directives from your computer.
2. Why It’s Useful: Perfect for those who want a one-time purchase with no ongoing subscription fees.
3. Visit Quicken WillMaker

Fabric by Gerber Life

1. What It Offers: Fabric offers free will creation and life insurance options, making it a good starting point for those new to estate planning.
2. Why It’s Useful: A simple and free solution for basic estate planning needs.
3. Visit Fabric

Closing Thoughts: Estate Planning is an Act of Love

Creating a comprehensive estate plan is about more than distributing assets—it’s about providing clarity and security for your loved ones. By addressing the basics and the often-overlooked details, you ensure that your wishes are honored and your family is supported during a challenging time.

Don’t let the complexity of estate planning deter you. Start with the essentials, then work through the less obvious aspects to create a plan that reflects your values and goals. And remember to revisit your plan regularly to keep it up to date.