Estate Planning Guide: How to Provide for Your Loved Ones

Editor's note: This post was originally published July 31, 2023, and has been updated for accuracy, comprehensiveness and freshness on July 9, 2025.

Estate planning isn't just for the wealthy, it's essential for anyone who wants to protect their loved ones and ensure their wishes are honored. Whether you own a home, have savings, or simply want to make healthcare decisions clear, having an estate plan provides peace of mind and prevents legal confusion after death.  

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This estate planning guidance will walk you through different types of estate planning documents, common mistakes to avoid, and practical tips for getting started. That’s our goal today! By following this estate planning checklist, you'll have the foundation to create a plan that truly protects what matters most.

What is estate planning?  

Estate planning is the process of deciding who gets what and when and making sure your loved ones are protected if something happens to you. Your estate includes everything you own: your home, car, bank accounts, investments, personal belongings, and even digital assets.  

But estate planning goes far beyond just writing a Will. It's about creating an estate plan that includes:  

• Asset distribution after your death  

• Healthcare directives for medical decisions  

• Financial powers of attorney for managing your affairs  

• Guardianship arrangements for minor children  

A complete estate plan addresses both end-of-life wishes and incapacity planning, ensuring you're protected in any situation.  

Types of Estate Planning documents

There are different types of documents that you can create for estate planning. However, the specific documents you will need will vary depending on your unique circumstances and goals. You should seek advice and assistance from an estate planning attorney.

Last Will and Testament  

Your Last Will and Testament is the cornerstone document that outlines who receives your property after death. It also allows you to:  

• Name an executor to manage your estate  

• Designate guardians for minor children  

• Specify how debts and taxes should be paid  

While Wills must go through probate court, they're essential for asset distribution and provide legal clarity for your family.  

Revocable Living Trust  

A revocable Living Trust allows your assets to transfer to beneficiaries without going through probate, saving time and money. Trusts are especially valuable for:  

• Larger estates that may face lengthy probate  

• Complex family situations requiring specific distribution rules  

• Privacy protection since trusts aren't public record  

Financial Power of Attorney  

A Financial Power of Attorney grants someone you trust the legal authority to make financial decisions if you become incapacitated. This document can cover:  

• Bank account management  

• Bill payments and financial obligations  

• Investment decisions  

• Real estate transactions  

Without this document, your family may need to go to court to gain access to your finances during a medical emergency. A durable power of attorney remains in effect when you are unable to make decisions.

Healthcare Power of Attorney

A Healthcare Power of Attorney lets you choose someone to make medical decisions on your behalf if you can’t make them for yourself. It is important to pick someone you trust and who understands your wishes for medical treatment.

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Healthcare Directive (Living Will)  

A Healthcare Directive or Living Will communicates your wishes for end-of-life medical treatment  when you can't speak for yourself. This document typically addresses:

• Life-sustaining treatment preferences  

• Organ donation decisions  

• End-of-life care instructions  

Pairing this with a Healthcare Power of Attorney ensures someone can make medical decisions on your behalf while following your stated preferences.  

Common estate planning mistakes to avoid  

Even well-intentioned people make critical errors that can undermine their estate plans. Here are some of the most practical estate planning suggestions to help you avoid costly mistakes:  

• ‍Not having any plan at all is the biggest mistake. Without proper documents, state laws determine how your assets are distributed—which may not align with your wishes. Consult a lawyer to make sure you have all the right paperwork.  
• ‍Forgetting to update beneficiary designations on accounts can override your will entirely. Your 401(k) or life insurance policy will go to whoever is listed as the beneficiary, regardless of what your will says. Regularly review and update your estate planning documents as needed.  
• ‍Using DIY legal templates without understanding state-specific requirements often creates invalid or incomplete documents that don't hold up in court. It’s best to ask a lawyer for assistance in creating these legal documents.  
• ‍Failing to plan for disability or incapacity leaves your family without guidance if you can't make decisions. This oversight can force loved ones into expensive guardianship proceedings. Plan ahead by talking to family members, legal experts, financial advisors and other professionals.

How to start estate planning  

Wondering how to start estate planning? Follow these practical steps to build your plan systematically:  

1. Create a comprehensive asset inventory.

Make a detailed list of assets for estate planning including:  

• Real estate properties  

• Bank and investment accounts  

• Retirement accounts (401k, IRA)  

• Life insurance policies  

• Business interests  

• Personal property of significant value  

• Digital assets and accounts  

2. Choose trusted people for key roles.

Select reliable individuals to serve as:  

• Executor of your Will  

• Trustee for any Trusts  

• Power of Attorney agents  

• Healthcare proxy or medical decision-maker

3. Consult with an estate planning attorney

You want to ensure your documents comply with state laws and address your specific situation. An experienced attorney can provide personalized estate planning guidance that generic templates can't offer.  

4. Review and update regularly.

Life changes like marriage, divorce, births, deaths, or significant financial changes should trigger a review of your estate plan.  

Estate planning checklist: What to include  

Use this estate planning checklist to ensure you haven't missed any critical elements:  

1. Gather essential personal information.

• ‍Full legal names and addresses of all family members  

• Social Security numbers for yourself and beneficiaries  

• Birth certificates and marriage/divorce decrees  

• Military service records if applicable

2. Collect important financial documents.

• Bank account statements and information  

• Investment portfolios and brokerage accounts  

• Retirement account details (401k, IRA, pensions)  

• Life insurance policies and beneficiary designations  

• Property deeds and mortgage information  

• Business ownership documents  

3. List your healthcare considerations.

• Current healthcare providers and medical history  

• Health insurance information  

• Long-term care preferences and insurance  

• Mental health treatment wishes  

4. Make critical family beneficiary decisions.

• Beneficiary selections for all accounts and policies  

• Guardianship preferences for minor children  

• Pet care arrangements if applicable  

• Charitable giving intentions  

This estate planning organizer approach ensures you gather everything needed before meeting with an attorney, streamlining the process and reducing costs.  

Resources for estate planning help  

Finding the right estate planning resources can make the difference between a comprehensive plan and costly oversights:

• ‍Estate planning attorneys provide personalized guidance and ensure your documents comply with state laws. Look for attorneys who practice in estate planning and have experience with situations similar to yours.  
• Government resources provide forms for basic documents like advance directives.  
• Educational materials including estate planning guides, checklists, and online resources help you understand the process before meeting with professionals.  
• Legal services like LegalShield offer affordable access to estate planning assistance through membership plans, making professional help more accessible.  

Plan now to protect what matters most  

Don't wait for the "perfect" time to begin your estate planning journey. Reach out to qualified professionals who can help you create a plan tailored to your specific needs and circumstances.  

How LegalShield can help with your estate planning needs  

LegalShield makes estate planning accessible and affordable for families at every income level. As a LegalShield Member, you get access to experienced estate planning attorneys who can guide you through the entire process.  

What's included in your membership:  

• Lawyer-drafted Will, Living Will, and Power of Attorney at no additional cost  

• Document review and consultation with provider attorneys  

• Annual updates to your basic estate planning documents  

• Legal consultation on estate planning questions  

• Affordable rates starting at $26.95/month for individuals and family  

LegalShield's provider lawyers can help you understand what documents you need, review existing estate plans, and create an estate plan  for your family. With professional legal guidance just a phone call away, you can move forward with confidence knowing your estate plan meets your state's requirements and protects what matters most.  

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Written by Elyse Dillard, Content Specialist at LegalShield. Elyse creates educational resources about legal and identity theft protection services. She works to make complex legal concepts more accessible to readers and has contributed to numerous articles on the LegalShield blog.

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