Estate planning is not just for the wealthy. Probate costs 3-7% of estate value — that is $7,500-$17,500 on a $250,000 estate — and the process takes 6-18 months during which assets are frozen. Caring.com 2025 data shows 67% of Americans have no estate plan at all, leaving families to navigate intestacy laws that rarely match their wishes.
The four essential documents form a complete basic estate plan: a last will and testament (executor designation, asset distribution, guardianship for minors), durable financial power of attorney (agent selection for financial decisions if incapacitated), healthcare directive with HIPAA authorization (end-of-life preferences, medical decision-making), and a beneficiary audit (401k, IRA, life insurance designations that bypass probate regardless of what a will says).
A revocable living trust becomes worthwhile at approximately $500K net worth or when owning real estate in multiple states. Federal estate tax exemption is $13.61M in 2024, but state-level estate taxes apply as low as $1M in states like Oregon and Massachusetts.
Originally published on WealthWise OS.