Estate Planning in 2026: The 5 Documents You Need
Calculate potential estate tax with our [Estate Tax Calculator](/calculators/finance/estate-tax-calculator).
The 5 Core Documents
1. Last Will and Testament
Specifies who gets your assets, names guardians for minor children. Without it: state intestacy laws decide — often not what you would choose.
Cost: $150-$500 with attorney, or free with LegalZoom or Trust and Will.
2. Revocable Living Trust
Assets in a trust avoid probate — the expensive, public, slow court process. Estimate probate cost with our [Estate Probate Calculator](/calculators/finance/estate-probate-calculator).
When you need one: large estate, multiple properties, blended families, minor beneficiaries.
3. Durable Power of Attorney (Financial)
Names someone to manage your finances if incapacitated. Without it, family must go to court for guardianship.
4. Healthcare Proxy / Medical Power of Attorney
Names someone to make medical decisions if you cannot.
5. Living Will (Advance Directive)
Specifies medical wishes for end-of-life care. Prevents family conflict.
2026 Estate Tax Exemption Warning
Current federal exemption: $13.61 million per person ($27.22M married) under TCJA.
TCJA provisions were set to expire December 31, 2025 — the exemption may revert to ~$7M single / $14M married. For estates near these levels, 2026 action is critical.
Beneficiary Designations: More Important Than Your Will
Your will does NOT override beneficiary designations on retirement accounts and life insurance. The named beneficiary wins regardless of your will.
Check and update immediately:
- All 401k, IRA, and 403b beneficiaries
- Life insurance policies
- Update after every major life event (marriage, divorce, birth, death)
An ex-spouse still named on a $500,000 IRA overrides your current spouse in most states.
Assets That Avoid Probate Automatically
- Life insurance with named beneficiary
- Retirement accounts (IRA, 401k) with beneficiary designation
- Joint tenancy property
- Payable-on-death bank accounts
- Trust-held assets
Related Tools
- [Term vs Whole Life Calculator](/calculators/finance/term-vs-whole-life-calculator) — Life insurance in your estate plan
- [Retirement Calculator](/calculators/finance/retirement-calculator) — Coordinate estate with retirement plan