Even if you don’t consider yourself “ultra-wealthy,” an estate plan protects your wishes, your family, and your legacy. And a will alone isn’t enough. A modern plan coordinates your documents, powers of attorney, health care directives, trusts, and beneficiary designations so people you trust—not the court—make decisions on your behalf. Reviewing your plan regularly can also help manage taxes, streamline transfers, and avoid unintended consequences. Your estate plan ensures your wishes, and not default state law, drive what happens next.

Do I need an estate plan?

Many people assume estate planning is only for the ultra‑wealthy. In reality, the core purpose of planning isn’t net worth—it’s control. You want clarity around who receives what, who steps in if you’re unable to act, and how smoothly your financial life transitions to the people and causes you care about. 

An estate plan can help you: 

• Name guardians for minor children
• Direct how and when heirs receive their inheritance
• Appoint the person who manages your estate (instead of letting a court decide)
• Reduce confusion, conflict, and delays
• Provide instructions for health care and financial decisions during incapacity
• Support charities in a tax‑aware way
• Coordinate complex family dynamics, including blended families 

Making these decisions ahead of time helps spare your loved ones from uncertainty during emotional moments. 

If I have a will, do I still need an estate plan? 

A will is important—but it’s only one piece of your estate plan. A will provides instructions for assets that pass through probate. But many significant assets—retirement accounts, life insurance policies, annuities, and certain jointly held accounts—transfer by beneficiary designation, not by will. 

A comprehensive estate plan typically includes: 

Core documents 

• Will – directs asset distribution and names guardians for minors
• Durable Power of Attorney – authorizes someone to make financial decisions if you’re unable
• Health Care Directive (living will) – outlines your medical and end‑of‑life preferences
• Health Care Power of Attorney – names someone to make medical decisions for you 

For more complex situations 

• Revocable trust – helps avoid probate, maintain privacy, and manage distribution timing
• Irrevocable trust – can support tax‑aware wealth transfer (with professional guidance)
• Life insurance – can create liquidity, equalize inheritances, and support charitable goals
• Updated beneficiary designations – essential for retirement plans and insurance policies 

The right combination depends on your tax situation, family structure, age, and goals. 

How can I reduce taxes for my heirs? 

Estate‑tax rules evolve, and high‑net‑worth families often face tax exposure they didn’t anticipate. While every situation is unique, several established strategies may help you transfer wealth more efficiently. 

1. Strategic gifting 

The IRS allows you to make gifts up to the annual gift tax exclusion each year, per recipient. In 2026, that amount is $19,000 per recipient, and married couples can generally combine exclusions to give $38,000 per recipient when they elect gift‑splitting. Gifting during your lifetime can reduce the size of your taxable estate while supporting loved ones now. 

The federal lifetime estate and gift tax exemption rises to $15 million per individual (or $30 million for many married couples) in 2026. 

2. Using trusts to shape and protect your legacy 

Irrevocable trusts—when appropriate—can help you: 

• Transfer assets outside your taxable estate
• Provide guardrails for heirs
• Support family members with special needs
• Create long‑term, multigenerational structure 

Because these trusts are permanent and remove day‑to‑day control, they require careful planning and coordination with an estate planning attorney. 

3. Life insurance as part of a tax‑aware strategy 

Life insurance can create tax‑free liquidity for heirs. It may also help replace wealth directed to charity or offset potential future estate taxes. 

4. Charitable giving with intention 

Leaving retirement accounts to nonprofit organizations can be highly tax‑efficient. These accounts are typically taxable to heirs but tax‑free to qualified charities. Life insurance or other assets can then be used to support loved ones more effectively. Find an in-depth discussion of charitable giving strategies in our article “Elevate Your Legacy: Charitable Giving in Wealth Transfer.”

How often should I review my estate plan? 

Review your plan every three to four years, at minimum. You should also revisit it whenever there’s a significant change in your: 

1. Family

• Births, adoptions, deaths
• Marriage or divorce
• Changes to guardians or personal representatives

2. Finances

• Receiving a large inheritance
• Changing your business structure or selling a business
• Significant changes in wealth or liquidity needs

3. Tax or estate laws

• Estate laws change, and those shifts can impact whether your plan still aligns with your goals. 

What happens if I don’t have a will or estate plan? 

Without an estate plan, state law determines: 

• Who receives your assets
• When assets are distributed
• Who becomes guardian of minor children
• Who manages your estate 

This often leads to: 

• Delays and higher probate costs
• Assets passing outright to children at 18 or 21
• A spouse receiving less than expected in blended families
• Relatives you may not have chosen receiving assets
• More potential tax exposure 

An estate plan isn’t just paperwork—it’s clarity. 

How we help you craft a coordinated estate plan 

At Wealth Enhancement, your advisor is supported by our Roundtable™ of specialists. Our tax, estate planning, retirement, and trust professionals collaborate to help ensure your plan is coordinated, comprehensive, and built to support your long‑term goals. 

Estate planning laws are complex, and no two families are alike. Our Team integrates estate planning into your broader financial life so that your intentions—and your legacy—are clear and actionable. 

Frequently Asked Questions (FAQ) 

Why do I need an estate plan if I’m not ultra‑wealthy? Estate planning is about control, clarity, and protecting the people and causes you care about. 

Is a will enough? A will is foundational, but it doesn’t replace the need for powers of attorney, health care documents, or coordinated beneficiary designations. 

How do I manage taxes for my heirs? Gifting, trusts, charitable strategies, and proper use of life insurance may help. Our advisors can help you explore these strategies. 

How often should I update my estate plan? Every three to four years, or sooner if your family, finances, or tax laws change. 

What happens if I die without a will? State law determines who receives your assets, who handles your estate, and when children inherit—outcomes that rarely reflect your wishes. 

Key takeaways 

• Estate planning is essential for anyone with people or causes they care about.
• A will is foundational, but it’s only one piece of a coordinated estate plan.
• Strategic planning—including gifting, trusts, and charitable strategies—may help manage taxes.
• Regular reviews ensure your plan keeps pace with your evolving life.
• Our advisors and the Roundtable™ work together to help you design a comprehensive estate plan. 

This information is not intended to provide individualized tax or legal advice. Discuss your specific situation with a qualified tax or legal professional.