Do You Actually Have an Estate Plan? Or Just a Will?
Life gets busy, and getting my affairs in order is one of those things that's easy to keep pushing to next year. But the older we get – and the more unpredictable the world feels – the more that to-do item deserves to move up the list.
So what does an estate plan actually cover?
At its core, an estate plan does two things: it spells out how your assets get distributed if you pass away, and it names who's allowed to make medical and financial decisions for you if you're still alive but unable to make them yourself.
More than just a will
A lot of people assume estate planning starts and ends with a will. A will is essential, but on its own it's not the whole picture. Here's what a complete plan typically includes:
A will. This is the document that spells out how your assets get divided when you're gone. Just as important, it names a guardian for any minor children – something you really don't want left to a judge who's never met your family. Worth noting: even if you set up a trust, you still need a will. It's called a "pour-over will," and its job is simply to catch anything that never made it into the trust.
A medical power of attorney. This names someone to make medical decisions on your behalf if you can't make them yourself. It also lets you name a conservator in case of mental incapacity.
A living will. Don't confuse this with a last will and testament – a living will covers decisions made while you're still alive, specifically around end-of-life care. This is where things like do-not-resuscitate and do-not-intubate wishes get spelled out, so your family isn't left guessing during an already painful moment.
A financial power of attorney. Similar idea, but for your finances – someone authorized to manage your money if you're unable to. There are two flavors: a durable power of attorney kicks in the moment it's signed, while a springing power of attorney only takes effect once you're incapacitated.
A revocable living trust. This one's more involved. A trust is essentially a container for your assets – it does nothing until you actually move things into it. For people with more complex estates or multiple beneficiaries, a trust can make managing everything simpler, and assets held inside it skip probate entirely. You still control everything in it while you're alive; you're the trustee.
Why bother now
None of this is fun to think about – nobody wakes up excited to plan for their own incapacity or death. But putting this in place, or updating a plan that's gotten stale, is one of the more thoughtful things you can do for the people you love. It removes guesswork, prevents family conflict, and gives you real peace of mind knowing things are handled no matter what comes.
If you'd like help thinking through your own plan, feel free to reach out – happy to talk it through.
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John Piershale, CFP®, AEP®
Fee-Only and Fiduciary Advisor
NAPFA-Registered Financial Advisor
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