Estate Planning Isn’t Just for Rich People
The words “estate plan” conjure images of mansions and family trusts, which is exactly why most ordinary people never get one, despite genuinely needing basic protections.
The word “estate” does a lot of unhelpful marketing work against itself. It conjures images of sprawling properties, family fortunes, and lawyers in wood-paneled offices discussing trusts for people who have wings named after them in hospitals. This framing has convinced a huge number of ordinary people, with ordinary bank accounts and ordinary lives, that estate planning simply doesn’t apply to them — a genuinely costly misconception, since an estate, in the actual legal sense, is simply everything you own, however modest, and estate planning is simply deciding what happens to it, and to the people who depend on you, if something happens to you.
Let’s talk about what this actually requires at a normal income level, because it’s considerably less complicated, and considerably more urgent, than the mansion-and-trust imagery suggests.
The Document Almost Everyone Skips (And Genuinely Shouldn’t)
A will is the foundational document here, and a surprising number of adults, including many with children, dependents, or meaningful assets, simply don’t have one. Without a will, state law determines how your assets are distributed and, critically, who becomes the legal guardian of any minor children — decisions that might not match what you would have actually chosen, made by a court system rather than by you, during an already difficult time for the people you left behind.
For a relatively simple estate — no complex business holdings, no unusually complicated family situation — a basic will can often be created affordably through a reputable online service, though anyone with meaningful assets, blended family considerations, or genuine complexity is well served by an actual estate attorney, since the cost of getting this wrong considerably exceeds the cost of getting it done properly the first time.
A will isn’t a document for people who are dying. It’s a document for people who are living, specifically so the people they love aren’t left guessing during the worst week of their lives.
The Beneficiary Check That Takes Ten Minutes and Prevents Genuine Disasters
Here’s something that surprises a lot of people the first time they learn it: beneficiary designations on retirement accounts, life insurance policies, and certain other accounts generally override what your will says, which means an outdated beneficiary — an ex-spouse still listed on a 401(k) from years ago, a beneficiary who has since passed away — can create genuinely serious complications, regardless of how carefully your will was written.
This is exactly the same issue we touched on during the divorce and widowhood conversation on Day 28, and it deserves a periodic check even outside of a major life event — a simple annual habit of confirming every account's current beneficiary designation still matches your actual current wishes, since these designations tend to get set once during onboarding and then forgotten for years, sometimes decades.
Life Insurance: Not Just for People With Kids
Life insurance is most commonly discussed in the context of protecting dependent children, and that context absolutely matters — if anyone relies on your income, a term life insurance policy is one of the more straightforward, affordable ways to protect them, and worth securing well before you think you need it, since rates increase with age and health complications. But life insurance also matters for couples without children who’ve taken on shared debt, or for anyone whose absence would create a genuine financial burden for someone else, including covering funeral costs that can otherwise land unexpectedly on family members already dealing with loss.
Term life insurance, which covers a specific period rather than your entire life, is generally the most affordable and appropriate option for most people at this stage, considerably cheaper than permanent life insurance for the coverage amount most families actually need.
The Two Documents Almost Nobody Thinks About Until It’s Urgent
A healthcare power of attorney designates someone to make medical decisions on your behalf if you’re unable to, and a financial power of attorney does the same for financial decisions. These documents matter regardless of age or wealth level, since a sudden accident or medical emergency can affect anyone, and without these designations in place, family members can face genuinely difficult legal hurdles just to help you during a crisis, at exactly the moment help is needed most urgently.
These documents are frequently included as part of a basic estate planning package, and they’re considerably cheaper and simpler to establish in advance than to arrange during an actual emergency, when a family is already under significant stress and time pressure.
Check Your Beneficiaries Today
Log into every retirement, investment, and insurance account you have and confirm the current beneficiary designation actually reflects your current wishes. If you don't have a will and have dependents or meaningful assets, research a reputable service or attorney to start the process this month.
