Estate Planning 2026: The 4 Documents Every Adult Needs

A will is a legal document that directs how your assets are distributed after death. It must go through probate, a court process that can take 6–18 months, cost 3–8% of the estate in fees, and become a matter of public record. A will is essential, but it's a starting point, not the complete solution.

A revocable living trust owns your assets during your lifetime and passes them directly to beneficiaries after death, bypassing probate entirely. Key advantages:

• Probate avoidance: Assets transfer immediately to heirs without court involvement
• Privacy: Trusts are not public record; wills are
• Multi-state property: Without a trust, owning property in multiple states means probate in each state
• Incapacity planning: A successor trustee can manage assets if you become incapacitated
• Minor children: A trust can control how and when children receive assets (not all at 18)

When do you need a trust? If you own real estate, have minor children, hold significant investment accounts, own property in multiple states, or want to control the timing of wealth transfer. Cost: $1,500–$3,500 for an attorney to draft a complete trust package.

• Outdated beneficiary designations. Retirement accounts (401k, IRA) and life insurance pass directly to named beneficiaries, overriding your will entirely. An ex-spouse listed as beneficiary 15 years ago will inherit your IRA regardless of what your will says. Review beneficiaries after every major life event.
• No guardian named for minor children. If both parents die without a will naming a guardian, a court decides who raises your children.
• Failing to fund the trust. A revocable trust only controls assets "in" it. A trust that hasn't been funded (assets retitled into the trust's name) provides no probate protection.
• Joint ownership assumptions. "We own everything jointly, so it's fine" is true for the surviving spouse, but when the second spouse dies, the estate is still subject to probate.
• No power of attorney until it's too late. Once someone is incapacitated, a POA cannot be created. You need it before you need it.

Estate planning involves two professionals: an estate planning attorney (drafts the documents) and a financial advisor (coordinates the financial assets to match the plan). Your advisor ensures your accounts, beneficiaries, and titling align with the trust and will, and that the estate plan accounts for tax implications like the step-up in basis, Roth conversions, and charitable strategies.

Fee-only fiduciary advisors are particularly valuable here because they have no incentive to push certain products. They'll help you evaluate whether your assets are optimally structured for the transfer you intend, without selling you whole life insurance you don't need as a "solution."