The Gift of a good estate plan
Why the most caring thing you can do for your family isn't about money at all.
There is a tendency to put estate planning in the category of something you'll get around to eventually — probably after a major life event forces the conversation.
For most people, when they think of estate planning, their mind goes to what happens after death. And while planning for the transfer of your assets is important, it tells only half the story.
The other half? What happens while you're still alive, but unable to make decisions for yourself.
So, what is estate planning, exactly?
At its core, estate planning is the process of documenting and organizing your wishes, so the right people have the right authority to carry them out. Whether that means managing your healthcare in a medical emergency, overseeing your finances if you become incapacitated, or ultimately distributing your assets after you're gone according to your written wishes.
A foundational estate plan typically includes:
A Will
Directs how your assets are distributed after death and, critically, names a guardian for minor children.
Durable Power of Attorney
Designates individual(s) to manage your financial affairs if you are unable to do so.
Healthcare Directive
Outlines your medical wishes if you can no longer express them yourself.
Healthcare Proxy
Names individual(s) to make healthcare decisions on your behalf.
Beneficiary Designations
Govern how retirement accounts, life insurance, and bank accounts can pass entirely outside of your will.
Revocable Living Trust
Holds assets in title during your lifetime and directs their transfer after death, while you retain full control until incapacitation. Whether a revocable trust belongs in your plan depends upon a number of factors, including the state where you live.
What about an irrevocable trust?
For those with more complex situations — significant assets, blended families, or legacy goals — an irrevocable trust may also be part of the picture. As with all legal matters, we defer to the guidance and counsel of trusted estate attorney professionals.
Why does estate planning matter?
Estate planning is not a gift you give to yourself. It is a gift you give to the people who love you most.
Without a plan, the people closest to you are left making difficult decisions under stress, grief, and time pressure without clarity of knowing what you wanted. Courts may ultimately decide who manages your affairs or inherits your assets. And in situations where relationships and financial stakes are involved, that ambiguity can sadly do real damage.
This is because money is deeply emotional, and a poorly structured estate plan, or no plan at all, can fracture dynamics between those you love the most. A thoughtful one can do the opposite.
This is especially true in complex family situations. If you have a blended family, a beneficiary with special needs, a history of substance abuse in the family, or a spendthrift in the mix, an off-the-shelf solution will not meet your loved one's needs adequately. Your estate plan should be tailored to the specific people and dynamics in your life.
And if you have an inheritance of your own, it is worth thinking carefully about how those fit within your broader estate plan to ensure they are protected regardless of what life throws your way.
Why your estate plan should go beyond the documents
Estate documents are the foundation. But truly comprehensive estate planning can also extend into a multi-generational tax strategy.
One of the more overlooked aspects of estate planning is around strategic beneficiary designations. Most people name their children or a spouse as equal beneficiaries on all retirement accounts and move on. But the tax implications of who inherits which assets can be significant.
Here's a simple example worth sitting with: a Roth IRA and a traditional IRA may carry identical balances on paper, but they are not the same asset.
Traditional IRA
Comes with a deferred tax liability, meaning every dollar a beneficiary withdraws is taxable as ordinary income to them.
Roth IRA
Inherited and withdrawn entirely tax-free.
For most non-spouse beneficiaries, the SECURE Act introduced a 10-year rule, which generally requires that inherited retirement accounts be fully distributed within ten years of the original owner's death. For a beneficiary in a high-earning phase of their career, ten years of required distributions from a large traditional IRA can mean a significant, and largely unavoidable, tax burden. That same balance inherited as a Roth can all be distributed tax-free in year ten, maximizing tax-free growth along the way. For this reason, it can be highly beneficial to get strategic about which assets are left to which heirs based on their own tax situation, to maximize the amount they each inherit.
And, if you have a charitable legacy intent, consider this: Naming a qualified charity as the beneficiary of your IRA and directing more tax-efficient assets like a Roth IRA or taxable brokerage account to your individual heirs can be a highly impactful strategy. This is because, unlike your heirs, charities pay no income tax.
The bottom line? Who you name as a beneficiary, and where, matters enormously. It deserves intentional thought, not a default choice made years ago that's on set-it-and-forget-it mode.
The power of a family meeting
There is one conversation that can do more good in a family than almost any other planning exercise: an honest, proactive family meeting.
Sharing the broad strokes of your estate plan with your family — including who holds your power of attorney, where your documents are stored, how accounts and assets are organized — can spare your loved ones an enormous amount of confusion and conflict down the line. It also gives them the opportunity to ask questions and understand your reasoning while you are here to explain it.
These conversations are sometimes uncomfortable, especially if money is not typically discussed around the table. But the families who have them are far better equipped, both emotionally and logistically, when a transition eventually comes.
How often should you revisit your estate plan?
Estate planning is not a one-and-done exercise. Life changes, and your plan should keep pace.
Every 3–5 years — Even if nothing has changed, to ensure your documents still reflect your wishes and any updates to applicable law.
After a major life event — Marriage, divorce, the birth of a child or grandchild, a death, a significant change in assets, or a move to a new state. It's also worth revisiting your plan after receiving an inheritance, starting or selling a business, or entering retirement.
After a tax law change — Legislation can meaningfully affect estate tax thresholds, retirement account distribution rules, and charitable giving strategies.
The bottom line
Estate planning is one of those items that sits on the to-do list longer than it should, probably because it asks us to confront uncomfortable realities: our own mortality, the limits of our control, and the complexity of the relationships we hold most dear. But when done well, it is one of the most meaningful acts of intention you can extend to those in your inner circle.
Ready to take the next step in your estate plan?
Let's Connect →This material is intended for educational purposes only. You should always consult a financial, tax, or legal professional familiar with your unique circumstances before making any financial decisions. Nothing in this material constitutes a solicitation for the sale or purchase of any securities. Any mentioned rates of return are historical or hypothetical in nature and are not a guarantee of future returns. Past performance does not guarantee future performance. Future returns may be lower or higher. Investments involve risk. Investment values will fluctuate with market conditions, and security positions, when sold, may be worth less or more than their original cost. Advisory Services offered through Avise Financial Cooperative Inc, a Registered Investment Adviser with the SEC. Registration of an investment adviser does not imply a certain level of skill or training.
