Estate planning isn’t just for the ultra-wealthy. It’s about keeping control, minimizing hassle, and making things easier for your loved ones. The goal of this post is to help you understand the components of a solid estate plan in retirement.
Of the hundreds of financial plans we’ve created at Together Planning, estate documents are often the most overlooked. It’s easy to let this part of your plan slip through the cracks. If you haven’t reviewed or updated your estate documents recently, read on to learn what you need and why it matters.
What is Estate Planning?
Estate planning is the process of deciding what happens to your assets if you die or become disabled.
The best time to make those decisions is now, while you still have full mental and physical capacity. One of the most thoughtful gifts you can leave behind is clarity. That clarity removes confusion and stress during a time when your loved ones will be grieving.
Everyone needs an estate plan. No exceptions. Whether you’re 18 or 87, there are key documents that protect your independence and your family’s well-being.
If you have a high net worth, estate planning can also help reduce potential taxes and ensure more of your money goes to the people and causes you care about.
Keep in mind, estate planning laws vary by state. This post is a general overview, and it’s important to consult with a local estate attorney to create a plan that meets your needs.
Core Estate Planning Documents
Here are five essential legal documents most retirees should have:
- Will – Explains how most of your assets should be distributed when you die (there are exceptions– retirement accounts, life insurance proceeds, and anything titled to a trust are not governed by your will).
- Durable Power of Attorney – Allows someone to manage your finances if you’re incapacitated.
- Healthcare Power of Attorney – Names someone to make medical decisions on your behalf.
- Living Will or Advance Directive – Specifies your end-of-life preferences.
- HIPAA Authorization – Lets your healthcare agent access your medical records.
These documents aren’t about wealth. They’re about staying in control and protecting the people you care about.
It's Not Just About Death
A common misconception is that estate planning only matters after you die. That’s only part of the picture.
Estate planning also covers what happens if you become incapacitated. Without a power of attorney or healthcare directive, your loved ones may need to go to court just to manage your finances or make medical decisions.
Even young adults should have these basic documents in place. If your child is over 18, consider helping them with a young adult estate package from an online provider. It’s a small step that can save enormous stress down the line. These documents are important to ensure that you can access their health and financial information and make decisions for them if they are ill or injured and can’t communicate.
Putting the right documents in place now protects your independence and gives your family the ability to step in if needed.
Beneficiary Designations and Account Titling
As mentioned above, some of your most valuable assets may not be controlled by your will. Retirement accounts, life insurance, and even regular bank accounts usually transfer directly to whoever is listed as your beneficiary.
These designations take priority over your will, so it’s essential to:
- Review them regularly
- Update them after big life events
- Check that account titling still matches your intentions
- Consider using Transfer-on-Death (TOD) or Payable-on-Death (POD) designations on non-retirement accounts to simplify things for your heirs
Wills vs. Trusts
One of the most common questions we hear is, “Do I need a trust?”
The answer depends on your situation. For many retirees, a simple will is enough. It’s easier and less expensive to create, but wills do go through probate court and become public record.
A revocable living trust, by contrast, avoids probate and offers greater privacy and control.
Reasons to consider a trust:
- You own property in multiple states
- You want to make things easier for your loved ones
- You want to control how and when your heirs receive money
Trusts aren’t only for the wealthy. They can be a helpful tool for anyone with a more complex estate or family situation.
Other Helpful Tools
Guardianship Provisions
If you have minor dependents, your will should name a guardian. This is essential to ensure your children are cared for by someone you trust.
Letter of Instruction
This is an informal document where you explain personal wishes, list your financial accounts, and provide login credentials. It’s not legally binding but can be extremely helpful.
To make this easier, consider using a password manager like Apple Passwords or 1Password. These tools allow you to securely store login credentials and designate emergency access to a loved one.
If you’re healthy and want flexibility, a traditional policy plus additional savings may give you more buying power. However, hybrid policies are often easier to qualify for and can offer peace of mind. Many people choose hybrid policies so that they or their family are sure to receive something for their premiums eventually– either in payments toward care or in a death benefit or to avoid the risk of rising premiums in a traditional plan.
Common Estate Planning Mistakes
Here are some of the most common mistakes we see:
- Forgetting to update beneficiaries, especially after divorce
- Not retitling accounts or assets placed into a trust
- Failing to create power of attorney documents
- Assuming everything automatically passes to your spouse
- Overlooking digital assets or online accounts
Avoiding these mistakes can save your family significant time and money.
What about Estate Taxes?
Estate taxes can sound intimidating, but very few retirees will owe them.
As of 2025, the federal estate tax only applies to estates over $13.99 million for individuals or $27.98 million for married couples. These higher exemption levels were permanently extended by the One Big Beautiful Bill (OBBB), which removed the 2026 sunset provision.
If your estate exceeds those thresholds or may do so in the future, you may want to explore strategies like:
- Irrevocable life insurance trusts (ILITs)
- Charitable trusts or donor-advised funds
- Gifting strategies
- Family limited partnerships
Keep in mind, some states have their own estate or inheritance taxes with lower thresholds. If you live in one of those states, work with a local attorney to plan accordingly.
Even if you aren’t affected now, it’s a good idea to keep an eye on tax law changes over time.
When to Review Your Plan
Estate planning, like financial planning, is not a one-time task. Review your plan:
- After major life events (marriage, divorce, birth, death, or a move)
- If tax laws or estate rules change
- Every three to five years at a minimum
You should also check your beneficiaries and account titling at least once per year.
Final Thoughts
Estate planning isn’t just about your money. It’s about protecting your family and ensuring your wishes are followed.
When you take the time to get these documents in place, you are doing something incredibly kind for your loved ones. You are making their lives easier in the moments that will matter most.
Want to make sure your estate plan is aligned with your financial goals?
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Together Planning is a registered investment advisor. The information presented is for educational purposes only. It should not be considered specific investment advice, does not take into consideration your specific situation, and does not intend to make an offer or solicitation for the sale or purchase of any securities or investment strategies. Together Planning has a reasonable belief that this marketing does not include any false or material misleading information statements or omissions of facts regarding services, investments, or client experiences. Together Planning has a reasonable belief that the content will not cause an untrue or misleading implication regarding the adviser’s services, investments, or client experiences. Be sure to consult with a qualified financial advisor and/or tax professional before implementing any strategy discussed herein.