Estate planning basics: what every adult should have

Estate planning is the legal framework for what happens to your money, your stuff, and your medical care if you can't make decisions for yourself or after you die. Most adults need it. Most adults don't have it. The reason is usually 'I'll get to it later' — which works until it doesn't.

The five basic documents

1. Will — directs who gets your stuff and who cares for minor children. Without one, the state decides.
2. Durable power of attorney — names someone to handle your finances if you become incapacitated.
3. Healthcare proxy (or healthcare power of attorney) — names someone to make medical decisions if you can't.
4. Living will (or advance directive) — your written preferences for end-of-life medical care.
5. HIPAA authorization — lets named people access your medical records and talk to your doctors.

Beneficiary designations matter more than your will

Retirement accounts (401(k), IRA), life insurance policies, and many bank accounts pass directly to whoever is named as beneficiary — overriding anything in your will. If you got divorced and never updated the beneficiary on your 401(k), your ex still inherits it. Check these every few years.

How to actually do this

• DIY services (LegalZoom, Trust & Will, Rocket Lawyer) — $100-300, fine for simple situations
• Estate planning attorney — $500-2,500, recommended if you have significant assets, blended families, special needs dependents, or business interests
• Free options — many states have free will templates; some employers offer free legal services as a benefit

When to revisit

• Marriage, divorce, or remarriage
• Birth or adoption of a child
• Significant changes in assets
• Move to a different state (estate laws vary)
• Death of a named beneficiary or executor
• Every 3-5 years even without a major change