Estate Planning: Why Everyone Needs One—Not Just the Wealthy

October 30, 2025

For many people, estate planning sits on the “someday” list—something they know they should do, but keep putting off. Maybe it feels complicated, maybe it seems unnecessary if you’re not ultra-wealthy, or maybe it’s simply uncomfortable to think about what happens when you’re gone.

Whatever the reason, the numbers tell the story: fewer than one-third of Americans have an estate plan in place. That means most families could face confusion, conflict, or costly delays if something unexpected happens.

But here’s the truth—estate planning isn’t about wealth. It’s about control, clarity, and care for the people you love most.

An estate plan ensures your wishes are honored—financially, medically, and personally—no matter what life brings. It can protect your family, simplify decisions during emotional times, and minimize taxes or legal complications. And with the right help, getting one in place is much easier than most people imagine.

Let’s take a look at what an estate plan really includes and five key steps to get started.

Step 1: Appoint a Power of Attorney

A power of attorney (POA) is one of the most important documents you can have. It allows someone you trust to make financial or medical decisions on your behalf if you’re unable to do so yourself.

There are two main types of powers of attorney:

●     Financial power of attorney – Gives your chosen person (often called an “agent” or “attorney-in-fact”) authority to manage your money and property. This can include paying bills, managing investments, filing taxes, or handling insurance claims.

●     Medical power of attorney (or health care proxy) – Allows someone to make health care decisions for you based on your instructions if you’re incapacitated.

Because these roles can require very different skills, many people choose different individuals for each one—for example, a financially savvy sibling to handle bills, and a spouse or adult child to oversee medical care.

Whoever you choose, make sure they’re willing to take on the responsibility and understand your wishes. Have an open conversation now about what you would want in a serious illness or emergency. That discussion will make things much easier later if the POA ever has to step in.

Note: A power of attorney ends when you pass away. After that point, your executor or trustee takes over to carry out the instructions in your will or trust.

Step 2: Create a Living Will

A living will—also known as an advance directive—spells out your preferences for end-of-life medical care. It answers questions your loved ones and doctors might face if you can’t communicate, such as:

●     Should doctors use life support, ventilators, or artificial hydration?

●     Do you want all possible treatments or comfort care only?

●     Are there specific pain management or palliative care preferences?

●     Do you want to be an organ donor?

Your living will can include as much detail as you’d like, and you can incorporate your religious or personal beliefs. Once it’s completed, share copies with your medical provider, your designated medical power of attorney, and close family members.

Having this document in place removes a heavy emotional burden from loved ones and gives clear direction to your health care team.

Step 3: Draft a Last Will and Testament

A last will and testament is the cornerstone of any estate plan. It details how your assets will be distributed and, if you have minor children, names a guardian to care for them. Without a will, state law determines how your estate is divided—and a judge decides who will raise your children.

Most people assume a will must be complicated or expensive, but it doesn’t have to be. With an experienced estate attorney, you can create a will that fits your situation and reflects your wishes. Many attorneys offer flat-fee arrangements for basic wills, while more complex estates may cost more depending on the assets involved.

Your will also names an executor—the person responsible for managing your estate after you pass. The executor’s duties may include filing court papers, paying debts and taxes, and distributing assets to beneficiaries. Choose someone responsible and organized, and confirm they’re willing to serve.

Your financial professional can play a key supporting role here as well, helping you take inventory of accounts, investments, insurance policies, and real estate so your attorney can build a complete and tax-efficient plan.

Step 4: Consider a Trust

For many families, a trust can be a powerful addition to a will. A trust gives you greater control over how and when your assets are distributed—and can also keep your estate private by avoiding the public probate process.

A well-structured trust can help you:

●     Reduce estate and income taxes for beneficiaries

●     Protect assets from creditors or lawsuits

●     Manage inheritance for minor children or loved ones with special needs

●     Set conditions for inheritance (for example, releasing funds for education or milestones)

Establishing a trust requires an upfront cost, often starting around $1,000 and increasing with complexity. You’ll also need to name a trustee, who is responsible for managing the assets and following the terms you’ve outlined. This can be a trusted family member, a friend, or a professional trustee—such as a bank or corporate fiduciary—especially for larger or more complex estates.

Think of your trustee as the person carrying out your financial wishes long after you’re gone. Choose someone who is reliable, fair-minded, and financially capable.

Step 5: Review and Update Regularly

Once your estate plan is in place, don’t let it gather dust. Life changes—marriages, divorces, new children or grandchildren, home purchases, business sales, or even shifts in tax law—can all affect your plan.

Most experts recommend reviewing your estate plan every 2 to 5 years, or immediately following any major life event.

This review should include:

●     Beneficiary designations: Double-check who’s listed on your retirement accounts, life insurance, and other financial accounts. These designations usually override what’s in your will.

●     Asset inventory: Make sure your attorney and executor know where key documents and account information are kept.

●     Guardians and trustees: Confirm that the people you’ve named are still the right fit and willing to serve.

●     Health care preferences: Review your medical directives periodically to ensure they still reflect your current wishes.

Procrastination is the biggest threat to effective estate planning. The sooner you have your documents in order, the sooner you can relax knowing your loved ones will be cared for and your wishes honored.

“A good estate plan isn’t just about transferring wealth—it’s about transferring wisdom, values, and clarity,” says Nathaniel Arnett, an estate planning specialist. “It gives your loved ones confidence during one of life’s most difficult moments.”

Getting Started

If you’re unsure where to begin, start by gathering a list of your accounts, assets, and insurance policies. Then schedule a meeting with a financial professional who can help you see the big picture and recommend trusted estate attorneys or online planning tools to match your needs.

Estate planning can seem intimidating at first, but once you begin, most people find it’s a straightforward process—and one of the most meaningful financial steps they’ll ever take.

Whether you’re a new parent wanting to name a guardian, an empty nester thinking about retirement, or simply someone who wants to take care of family “just in case,” now is the time to put your wishes in writing.

The Bottom Line

Estate planning isn’t just for the wealthy—it’s for anyone who wants to protect the people and values that matter most. A thoughtful plan can prevent confusion, minimize taxes, and ensure that your medical and financial preferences are honored exactly as you intend.

By creating (and updating) your will, power of attorney, living will, and—if appropriate—a trust, you’re giving your loved ones the gift of clarity and peace of mind.

You can’t control the future, but with a well-crafted estate plan, you can make sure your loved ones are cared for, your legacy is preserved, and your voice continues to be heard.

Sources: https://www.fidelity.com/viewpoints/wealth-management/estate-planning-made-easy

Disclosure:

This information is an overview and should not be considered as specific guidance or recommendations for any individual or business.

This material is provided as a courtesy and for educational purposes only.

These are the views of the author, not the named Representative or Advisory Services Network, LLC, and should not be construed as investment advice. Neither the named Representative nor Advisory Services Network, LLC gives tax or legal advice. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. Please consult your Financial Advisor for further information.