The one-minute version
Estate planning isn't about being wealthy — it's about control: who makes decisions if you can't, who receives what, and how to spare your family the cost, delay, and conflict of sorting it out in court. A complete plan covers two situations people often forget are separate: what happens if you become incapacitated, and what happens when you pass away.
Wills
A will states who inherits your property, names an executor to carry out your wishes, and — critically for parents — names a guardian for minor children. Without one, you die "intestate," and your state's default formula decides who gets what, which may be nothing like what you'd have chosen. A will alone still goes through probate, the court process for settling an estate.
Trusts
A revocable living trust can hold assets during life and generally pass properly titled trust assets without probate at death. Funding the trust and keeping asset titles current are essential; it can also provide management continuity if you become incapacitated. You stay in full control while living and can change it anytime. An irrevocable trust limits your control and may offer asset-protection or tax benefits depending on its terms, funding, and applicable law. These benefits are not automatic, and this type of trust fits narrower situations. Not everyone needs a trust, but for many families it's the cleanest way to avoid court.
It depends on your assets, your goals, and whether avoiding probate matters to you.
Powers of attorney & health directives
These cover the gap most people overlook — what happens if you're alive but can't make decisions:
- Financial power of attorney: names who can manage money and pay bills for you.
- Health care power of attorney (proxy): names who makes medical decisions if you can't.
- Living will / advance directive: states your wishes for end-of-life care so loved ones aren't left guessing.
Without these, your family may have to go to court for guardianship at the worst possible moment. They're inexpensive to set up and arguably the most important documents you'll sign.
Beneficiaries & probate
Here's what surprises people most: beneficiary designations override your will. Retirement accounts, life insurance, and "transfer on death" accounts pass directly to whoever you named — regardless of what your will says. An out-of-date beneficiary (an ex-spouse, a deceased relative) is one of the most common and avoidable estate mistakes. Reviewing these is often the highest-value 20 minutes in your whole plan.
An outdated designation can quietly override your entire will. We'll help you review them.
Estate tax in 2026 — who actually owes it
For the vast majority of families, federal estate tax is no longer the concern it once was. The 2025 tax law made the exemption permanent and raised it: in 2026 you can pass $15 million per person — up to $30 million for a married couple with proper planning — before federal estate tax generally applies. Prior taxable gifts can reduce the available exemption, and preserving a deceased spouse's unused exemption may require a timely portability election on Form 706. Above that, the rate is 40%.
You can also give up to $19,000 per recipient per year (the annual gift exclusion) to as many people as you like without touching that lifetime amount. Because so few estates owe federal tax now, for most families the real priorities are avoiding probate, keeping beneficiaries current, securing the step-up in basis, and having incapacity documents in place — plus any state estate or inheritance tax, which can apply at far lower thresholds than the federal one. (Utah, for what it's worth, has no state estate or inheritance tax.)
For most families the bigger issues aren't federal tax at all — let's look at yours.
Will your estate owe federal estate tax?
In 2026 the federal estate-tax exemption is $15 million per person ($30 million for a married couple with proper planning). The large majority of families owe nothing. Enter your estimated total estate value.
2026 numbers at a glance
Reflects the federal exemption made permanent under the 2025 tax law (One Big Beautiful Bill Act), effective 2026. State rules vary. Educational only; not legal or tax advice. Last reviewed: 2026.
Your employees keep asking you this, don't they?
These aren't questions HR should have to field. We teach this exact material to your team onsite or virtually — as a genuine employee benefit.
Free guidebook
Estate Planning Guidebook
Your plain-English guide to wills, trusts, beneficiaries, and the documents every family should have in place.
Sources & review
These figures come from official government sources and are reviewed regularly. Figures are subject to change.
Last reviewed: June 2026 · Figures are subject to change. This page is educational only and is not personalized investment, tax, legal, or Medicare advice.