Estate planning is one of the most important financial steps you can take for your family, yet more than half of Americans have no plan in place. Many people assume that estate planning is only for the very wealthy, especially now that the federal estate tax exemption sits at $13.99 million per individual for 2025, rising to $15 million in 2026 under the One Big Beautiful Bill Act. That assumption is wrong, and it could cost your family dearly.
While fewer families face estate taxes at these high exemption levels, taxes are only one piece of the puzzle. Estate planning addresses a range of non-tax issues that affect families at every income level: who inherits your property, who raises your children, and who makes medical decisions on your behalf if you cannot. According to the IRS estate and gift tax guidance, the exclusion amount changes over time, but the personal and family questions a plan answers remain constant.
Do you actually need a will?
Various studies estimate that more than half of all Americans do not have a will. Some people reason that their financial affairs will sort themselves out. In certain cases that logic holds: if you and your spouse own your home, bank accounts, and brokerage accounts as “joint tenants with right of survivorship,” the surviving spouse automatically becomes the sole owner. Retirement plans and life insurance policies also pass directly to named beneficiaries, bypassing the will entirely.
But joint ownership and beneficiary designations do not cover everything you own. Consider your ownership interest in a business or professional practice, your vehicles, furniture, jewelry, and collectibles. If you die intestate, the legal term for dying without a will, the laws of your state of residence determine who receives these assets. The outcome may surprise you.
Most state intestacy laws do not give everything to a surviving spouse. Instead, they split the inheritance between the surviving spouse and the surviving children. If you want to control who receives your assets, you need to put your wishes in writing by working with an attorney to draft a will.
A business interest deserves special attention. If you own a stake in a company, partnership, or professional practice, the absence of a will or a clear succession arrangement can stall operations, trigger disputes among partners, and depress the value your heirs eventually receive. Coordinating your personal estate plan with a buy-sell agreement and a current business valuation is essential, and our transaction advisory team regularly helps owners structure those transfers before they become urgent.
What happens when your estate goes through probate
Even with a valid will, the probate court in your state must approve the distribution of assets that pass under it. Probate is a public process, meaning your friends, neighbors, and anyone else can read your will and review a list of your assets. For some families, this transparency is uncomfortable.
Probate also carries costs. The court and any administrators it appoints charge fees, and those fees tend to rise with the size of the estate. The larger your asset base, the more you pay in administrative expenses before your heirs receive their share. Probate can also take months or longer, during which heirs may have limited access to the assets they are set to inherit.
These concerns lead some people to use a revocable living trust as a substitute for, or supplement to, a traditional will. A revocable living trust allows assets to transfer to beneficiaries outside of the probate process, maintaining privacy and often reducing costs. Your estate planning attorney can help you evaluate whether a trust makes sense for your situation.
Why naming a guardian belongs on your estate planning checklist
For parents with minor children, naming a guardian may be the single most important reason to complete an estate plan. If both parents die in a common disaster without a will naming a guardian, the probate court decides who raises the children. That decision is made by a judge who does not know your family, your values, or your preferences.
Naming a guardian in your will gives you control over one of the most consequential decisions a parent can make. It ensures that the person you trust most, not a court, steps into that role.
You can also name a separate person to manage any money or property the children inherit, which is often handled through a trust. Pairing a guardian with a financial trustee keeps caregiving decisions and money management in the hands of the people you judge best suited to each role.
Essential estate planning documents beyond a will
A complete estate plan involves more than a will. Two additional documents deserve immediate attention.
Advance healthcare directive (living will). This document specifies the medical actions you want taken if you become unable to make decisions due to illness or incapacity. Without it, family members may face agonizing choices with no guidance about your wishes.
Power of attorney. A power of attorney authorizes a trusted person to act on your behalf in business and financial matters. If you become incapacitated without this document in place, your family may need to petition a court for the authority to manage your finances, a slow and expensive process.
Together, these estate planning documents form a safety net that protects both you and your family during the most difficult circumstances. They take effect during your lifetime, not just after death, which is precisely why they matter as much as the will itself.
When to review and update your estate plan
Completing your estate plan is not a one-time event. Life changes such as births, deaths, marriages, divorces, and retirement can alter your circumstances in ways that make an existing plan outdated or even counterproductive.
As a general rule, review your estate planning documents after any major life event, or at minimum once every five years. Tax law changes are another reason to revisit your plan, since the federal exclusion amount and other rules shift over time, as the IRS estate tax overview shows. During each review, focus on these areas:
- Executor and guardian designations. Are the people you named still willing and able to serve? Have your relationships or their circumstances changed?
- Retirement plan beneficiaries. Beneficiary designations on 401(k)s, IRAs, and other retirement accounts override what your will says. Confirm they reflect your current wishes.
- Life insurance beneficiaries. If a primary purpose of your life insurance is to fund the care and education of minor children, verify that your estate plan channels those funds to the right people. A policy that names a deceased ex-spouse as beneficiary, for example, creates a serious problem.
Failing to update these designations is one of the most common estate planning mistakes, and it is entirely preventable with periodic reviews. A coordinated review with your attorney and your accountant helps confirm that the documents, the beneficiary forms, and your tax position all point in the same direction.
How a CPA fits into your estate planning team
Estate planning is usually a team effort. An attorney drafts the legal documents, but a CPA brings the financial and tax perspective that ties the plan to your actual balance sheet. The two roles work best together rather than in isolation.
An accountant helps quantify the value of your estate, model the tax consequences of different transfer strategies, and keep beneficiary designations aligned with the rest of your financial picture. For business owners, that includes valuation and succession planning, areas where Pease Bell’s tax advisory services and broader accounting services can support both you and your attorney.
Bringing financial advisors into the conversation early also reduces the risk of surprises after death. A plan that looks sound on paper can still produce unintended tax bills or liquidity shortfalls if no one has run the numbers, which is exactly the work a CPA is positioned to do.
The real cost of skipping estate planning
People avoid estate planning for many reasons. They think it is too expensive, too complicated, or only necessary for the wealthy. In reality, dying without a plan imposes far greater costs on the people you leave behind. Intestacy proceedings, contested estates, and unresolved guardianship questions create financial and emotional burdens that a basic estate plan would have prevented.
Estate planning is not about taxes or wealth. It is about making decisions now so your family does not have to make them during a crisis. Whether your estate is worth $50,000 or $5 million, the people who depend on you deserve a clear plan.
Frequently Asked Questions
Do I need estate planning if I’m not wealthy?
Yes. Estate planning is not primarily about minimizing taxes. It determines who inherits your property, who raises your minor children, and who makes medical and financial decisions on your behalf. These issues affect families at every income level, not just those with large estates.
What happens if you die without a will?
If you die without a will (intestate), your state’s intestacy laws determine who inherits your assets. In most states, the estate is split between your surviving spouse and children, which may not match your wishes. The probate court also decides who serves as guardian for minor children.
What is the difference between a will and a revocable living trust?
A will is a legal document that directs how your assets are distributed after death, but it must go through probate. A revocable living trust transfers assets outside of probate, offering more privacy and potentially lower administrative costs. Many estate plans use both documents together.
What estate planning documents do I need?
At minimum, most adults need three documents: a will, an advance healthcare directive (living will), and a durable power of attorney. Depending on your circumstances, you may also benefit from a revocable living trust, beneficiary designations on retirement accounts, and life insurance policies with updated beneficiaries.
How often should I update my estate plan?
Review your estate plan after any major life event such as marriage, divorce, the birth of a child, a death in the family, or retirement. Even without a triggering event, review all documents at least once every five years to confirm that executor designations, beneficiary forms, and guardian appointments still reflect your wishes.
Why is probate something to avoid?
Probate is a court-supervised process that can be slow, expensive, and public. Court fees and administrator costs reduce the value of the estate, and the public nature of probate means anyone can access your will and asset information. A revocable living trust is one common tool for keeping assets out of probate.
