Estate Planning Checklist: 12 Tips and Advice

Estate planning is the process of organizing and arranging your assets to help ensure they’re transferred according to your wishes upon your death or incapacitation. Creating a comprehensive estate plan can help protect your loved ones and your assets — and give you peace of mind.

Estate plans are an essential part of your end-of-life plan, but the process can be complex — especially if you have a large number of assets and/or complicated wishes for their distribution.

We created this estate planning basics guide to help make the process simpler. Read on for tips on how to create an estate plan like a pro. 

Estate planning guide and tips 

There's no one-size-fits-all method for creating an estate plan. The specifics will depend on your individual circumstances. But these steps can help you get organized and begin the estate planning process.

Understanding the estate planning checklist

Your estate plan helps protect your loved ones. Rather than putting off estate planning, reference the estate planning checklist below to help prepare for each step of the process.

1. Assemble a team

Prioritize assembling an experienced team to help you create your estate plan. Some of the professionals you may want to include on this team are a financial advisor, a tax professional, and an estate planning attorney to map out a complete, customized estate plan. 

Each person on the team plays a critical role in the process and can provide invaluable legal and financial advice. Most importantly, you and your team will create a plan that helps ensure your assets are distributed to the people and organizations you choose with as little confusion as possible.  

2. Incorporate advanced directives into your estate plan, as well as a will

You might think an estate plan only requires a will, but there are other documents that help make sure your wishes are carried out. It’s important that your estate plan clearly outlines everything regarding your assets and dependents. Without an estate plan, a judge could make those decisions for you in probate court. 

Consider including the following estate planning documents in your end-of-life strategy:  

• Advanced healthcare directive: Also known as an advanced directive, this legal document offers guidance on your medical decisions and healthcare services, should you become incapacitated. An advance healthcare directive often contains two documents: a living will and healthcare power of attorney (POA).  
  
• A living will: Also called a medical care directive, a living will outlines the medical treatments you do and don’t want to accept at the end of your life. A healthcare Power of Attorney (POA) document — also known as a medical POA or healthcare proxy — assigns an individual of your choosing the power to make healthcare decisions for you if you can’t make them yourself.
• A healthcare power of attorney (POA) document: Also known as a medical POA or healthcare proxy, a healthcare POA  assigns an individual of your choosing the power to make healthcare decisions for you if you can’t make them yourself.   
• Financial durable power of attorney: A financial durable power of attorney (DPOA) gives you the ability to make financial decisions in your name and on your behalf if you’re unable to do so yourself.  
• Last will and testament: A last will and testament is a legal document that includes your wishes for your possessions and dependents following your death. In this document, you can name beneficiaries, designate guardians for minor children, and identify an executor for your estate — this person will be responsible for carrying out your wishes according to your will. 
  

Pro tip: Don’t confuse will preparation with an estate plan. A will is an important part of your estate plan, but an estate plan provides an overarching strategy for your end-of-life healthcare directives and asset distribution.   

3. Think carefully about choosing your power of attorney and healthcare proxy

Be sure you carefully consider whom you want to name as your agent in your estate planning documents, as they will be carrying out your wishes when you are unable to do so, or have passed.

Discuss your plans with your prospective agent or agents to make sure they are on board with performing their duties. You should also consider naming successor agents in case your primary agents cannot perform the tasks.¹ 

4. Plan for minors and guardianship 

Whom would you like to care for your dependents (if any) at the time of your death? These may include minor children, a loved one with special needs, or aging parents under your care. If no guardians are named in your estate plan, a probate court a may appoint guardianship for you.

Before you name a guardian, make sure you talk to them ahead of time to get their consent. In addition, remember that they don’t have to be the person managing a child’s inheritance. You can name a third party, such as a trustee, to oversee money or assets until the child is old enough to manage their inheritance themselves.  Also, know that naming a couple as co-guardians could get tricky if they divorce. Discuss this situation with your estate attorney and consider naming a backup guardian for your dependents.  

5. Consider trusts

A trust is a legal container that’s designed to hold money and other assets for your heirs. When you create a trust, you decide what goes into it, who gets what, and how it’s distributed. A properly structured trust can help ensure your plan is executed exactly the way you intended. It may also protect your estate from entering probate.  

Working with an attorney who specializes in estate planning and trusts is critical to ensuring you’re choosing the right trust for your needs and that it’s structured according to your wishes.  

Some of the most common types of trusts are:  

• Revocable living trusts: A revocable living trust allows you to revise or end the trust at any point before your death. Once you pass away, your revocable trust will become irrevocable.
• Irrevocable trusts: An irrevocable trust can’t be changed or terminated once you’ve created it. While an irrevocable trust lacks the flexibility of a revocable trust, it offers an added layer of protection against lawsuits, creditors, and taxes. 
• Charitable trusts: A charitable trust lets you donate assets or money to a charitable organization. Assets included in a charitable trust are no longer considered your personal property, which means they may pass to your beneficiaries without being subject to taxes or lawsuits. 
  

6. Plan for navigating estate taxes and use strategies to minimize them

Estate taxes are federal taxes on assets, such as cash, real estate, stocks, and other valuable belongings. Your beneficiaries pay estate taxes after they receive their inheritance, which are typically due within nine months of your death. Many smaller, simpler estates won’t garner estate tax — the threshold for having to pay estate tax is $13,610,000 in 2024.²

In addition, states have their own rules regarding estate and inheritance taxes. Some do not impose either, while others have one of both. Some states require you to pay more taxes the bigger the estate is, while others have a flat tax rate no matter how much assets your estate has.³

Remember that estate and inheritance taxes are two different things:¹

• Estate tax is what is paid to the federal government (and possibly some states) on the assets being passed on in your estate.
• Inheritance tax is what the beneficiaries pay to the state on the assets they gain from an estate, if the state requires it.

There are preventive measures you can take to plan for or minimize estate taxes, such as placing assets in an irrevocable trust or giving gifts to family members, or donating to charity. Talk to a tax professional who can work with your attorney and financial advisor to determine which estate tax planning strategies may be best for your situation. 

7. Avoid probate     

Probate is the legal process of verifying your will through the courts. It can be a slow, costly, and extremely public process — since probate cases are a matter of public record. In addition, a probate judge may make decisions you would disagree with if you haven’t outlined them in your estate plan. 

Fortunately, you may be able to prevent your estate from going through the probate process. Tactics like writing and maintaining a will, designating an executor for your estate, and establishing a trustee to manage assets in a trust can reduce the risk of probate.  

For more information, discuss probate laws with your attorney and develop a plan to protect your loved ones from undergoing public court proceedings. In the event probate can’t be avoided, consider hiring a probate lawyer to help navigate the process. 

8. Prepare for long-term care

Work with your financial advisor to prepare for potential long-term care needs. Most of us will need care at some point in our lives, often after a medical emergency, or due to aging.⁴  You may also want to consider options like long-term care insurance, a type of insurance that helps pay for care while preserving your assets. 

There are a few basic options for long-term care to consider:⁴

Home-based care

Of course, family members or friends often provide informal care if needed. But you may also require the help of professionals, such as nurses, health aids, or therapists. So you’ll want to plan ahead to see how you will pay for these services.

Community center care

If you are able to get around, senior centers or adult day care places can provide activities or personal care that you may need. Often, these services are free.

Residential care

An assisted living facility or nursing home can provide as little or as much care as you need, depending on the facility. For instance, an assisted living facility may just provide housekeeping, while a nursing home can offer round-the-clock medical care. Your savings, government programs, and long-term care insurance can help pay for residential care.

Be sure to discuss your options and come up with several plans in case your health needs change.

9. Consider income in respect of a decedent (IRD) taxes 

Federal Estate Tax is not the only tax you need to be aware of. A little-known tax that hits people who inherit certain types of money is called Income in Respect of a Decedent, or IRD. If you die and you have income that hasn’t been taxed, your estate or your beneficiaries will have to pay income taxes on that money.

Examples of IRD-taxable income include: 

• Savings bond income
• Individual retirement account payouts
• Sales commissions 
• Other types of income you would have received had you lived
  

Consult with your tax professional to ensure you have a complete estate plan that covers all tax scenarios.

10. Keep your beneficiaries up to date

During the estate planning and will preparation process, you’ll have the opportunity to name your beneficiaries. It’s important to look out for a major loophole, though. Any money you have in accounts with named beneficiaries will go to those individuals, even if your estate plan says otherwise.

These accounts include but aren’t limited to:

• Retirement plans (401ks, IRAs)
• Life insurance policies
• Bank accounts
• Payable-on-death and transfer-on-death accounts   
  

Keep your beneficiary designations aligned with your estate plan to help ensure there are no conflicts.

11. Consider your digital assets in estate planning

More than likely, you’ve thought of your physical belongings and money during the estate planning process. But don’t forget about your digital assets.  

You may have treasured photos and important documents saved in social media accounts and/or digital file storage services. And if your accounts are password-protected, they may be inaccessible to others.  

Service providers often won’t disclose a deceased person’s passwords, and there are few laws to help in this situation. To reduce the risk of loved ones losing access to treasured memories or important documents, designate a “digital fiduciary” in your estate plan. This person will have the right to access your digital information, including login names and passwords. You can also work with an attorney to shut down your online presence — if that’s your preference. 

12. Once you’ve created your estate plan, keep it up to date

This checklist gives you a fairly thorough plan for setting up an estate plan that will carry out your wishes for your assets after you’re gone. But an estate plan isn’t a “set it and forget it” kind of thing.

There are many reasons why you may want to update your estate plan:

• You experience a significant shift in your net worth
• A life event like a marriage, divorce, or birth of a child
• Your chosen executor, trustee, or POA passes away or is otherwise unable to fulfill their role
• The laws around estate tax change

If a change in your life makes you rethink how you may want to distribute your assets, or it’s just been a while since you looked over your estate plan, it’s a good time to review your documents to make sure they still reflect your wishes.

How legal insurance can help you create an estate plan

Legal insurance gives you access to a network of qualified lawyers who specialize in estate planning and other legal matters. These legal experts can help you set up a will, trust, and POA. They can also help you review and revise your estate plan as your needs and circumstances change. 

A legal plan may be a cost-efficient alternative to hiring a lawyer. With legal insurance, you pay a monthly premium that’s typically a fraction of the cost you’d pay in attorney fees. Additionally, legal insurance doesn't have claim forms, retainer fees, deductibles, or copays. So your out-of-pocket expenses are typically lower.

Talk with your employer to learn if they offer legal insurance as part of their employee benefits, and then sign up during open enrollment.