Estate planning basics

Estate planning isn't just for rich people. Every adult with any assets, relationships, or preferences about their own medical care needs the same small set of documents. If you die or become incapacitated without them, the state decides what happens next — and the state rarely picks the answer you would have.

The four essentials

1. Will — states who gets your assets, who's in charge of executing the distribution, and (critically) who becomes guardian of your minor children if you have them.
2. Durable Power of Attorney — names someone to handle your finances if you're alive but incapacitated.
3. Healthcare Power of Attorney — names someone to make medical decisions for you if you can't.
4. Living Will / Advance Directive — documents your preferences for end-of-life care so your family isn't guessing in a crisis.

Do you need a trust?

For most people with net worth under a few million dollars and uncomplicated family situations, a will is sufficient. Trusts become useful when: you have complex beneficiaries (special-needs children, blended families), you own real estate in multiple states, or your estate is large enough that probate costs matter. Not everyone needs a trust — most people don't.

Cost and effort

A straightforward will + power of attorney + healthcare directive can be done with an attorney for $300–1,000, or with a reputable online service for $100–200. It is cheaper than almost every other thing you buy in adulthood, and more consequential than most. The barrier is the emotional weight, not the price.