Estate Planning: Not Just for Billionaires

Key Takeaways

• The Reality: If you don't have a plan, the state has one for you. And it's expensive and slow.
• Will vs. Trust: A Will is a letter to a judge (Probate). A Trust is a private contract that avoids court.
• Power of Attorney: Who makes medical or financial decisions if you are in a coma? You need to designate this now.
• Beneficiaries: Check your 401k and Life Insurance beneficiaries. They override your Will.

Introduction

You Didnt Expect to Die Today

But it happens. And if you have assets and no plan, the state has a plan for you—and your family won't like it. Estate planning is not for the rich; it's for anyone who loves their family. It is the final gift you give them to ensure they aren't fighting in court while they should be grieving.

Deep Dive: The Essential Checklist

1. A Will

The basic document. It says who gets the house and, most importantly, who takes care of the minor children (Guardianship).

• Without it: A judge decides who raises your kids.

2. A Living Trust (Revocable Trust)

Better than a Will.

• The Problem with Wills: A Will goes through Probate. This is a public court process that takes 9-18 months and costs 3-5% of your estate in legal fees.
• The Solution: A Trust is a private contract. You transfer your assets into the Trust while you are alive. When you die, the "Successor Trustee" instantly manages them for your beneficiaries. No courts. No lawyers taking a cut. Immediate access to cash for funerals/bills.

3. Power of Attorney (POA)

Death isn't the only risk. Incapacity is real.

• Financial POA: If you are in a coma, who pays the mortgage? Who accesses your bank account?
• Medical POA (Healthcare Proxy): Who decides to pull the plug? Without these, your family has to sue you in court to get "Conservatorship" just to pay your bills.

Summary

Don't leave a mess. Spend the $1,000-$2,000 to get a Trust package done. The peace of mind is worth 10x that.