7 Estate Planning Basics Everyone Should Know

Estate planning isn’t just for the wealthy or those nearing retirement. Anyone who owns property, has savings, or wants to protect their family can benefit from having a plan in place.

An estate plan helps ensure your assets are distributed according to your wishes and that trusted individuals can make financial or healthcare decisions if you become unable to do so. Without a plan, state laws determine how your property is handled—which may not reflect your intentions.

Here are seven estate planning basics everyone should know.

1. Your Estate Includes More Than You Think

Your estate includes everything you own, including:

• Real estate
• Bank accounts
• Investments
• Retirement accounts
• Life insurance policies
• Personal belongings

If you want control over how these assets are handled in the future, estate planning is essential.

2. A Will Is the Foundation of an Estate Plan

35% of Americans experienced family conflict as a result of not having an estate plan.

A will outlines how your assets should be distributed and allows you to name an executor to manage your estate.

Parents can also designate guardians for minor children through a will. Without one, state laws determine how assets are distributed.

3. Trusts Can Help Simplify Asset Transfers

31% of people say leaving loved ones without enough money is the most damaging result of a poorly planned estate strategy

A trust allows assets to be managed during your lifetime and distributed efficiently after death.

Trusts may help:

• Avoid probate
• Provide financial protection for beneficiaries
• Offer more control over how assets are distributed

4. Power of Attorney Protects You During Incapacity

52% of Americans believe passing away without an estate plan would be irresponsible.

A power of attorney allows someone you trust to make financial decisions if you become unable to manage your affairs.

Without this document, family members may need court approval to act on your behalf.

5. Healthcare Directives Protect Your Medical Wishes

A healthcare directive outlines your medical preferences and designates someone to make healthcare decisions for you if necessary.

This document helps ensure your wishes are respected and reduces uncertainty for loved ones.

6. Estate Plans Should Be Updated Over Time

72% of Americans do not have an up to date will.

Your estate plan should evolve as your life changes. Major life events that may require updates include:

• Marriage or divorce
• Having children
• Buying a home
• Starting a business
• Receiving an inheritance

Experts recommend reviewing your estate plan every three to five years.

7. Many Families Aren’t Talking About Estate Planning

A major challenge with estate planning is simply a lack of awareness and communication. Studies show that only about 34% of people know their state’s estate tax or probate rules, and 18% are unfamiliar with basic documents like healthcare directives.

Estate planning is also rarely discussed within families—over 40% of younger adults have never talked about estate planning with anyone.

Closing the Gap

New technologies are helping make estate planning more accessible than ever.

Through our partnership with Wealth.com, BNA helps clients create and store essential estate planning documents—such as wills, trusts, powers of attorney, and healthcare directives—through a guided digital platform.

To learn more about how it works, see our blog onHow to Simplify Estate Planning with wealth.com for more information. You can also explore additional estate planning insights in our Resource Center, where we share helpful articles on wills, trusts, and planning strategies.

Contact BNA Today

If you’re a business owner looking for reliable financial guidance, we’re just a call away. Reach out to us at (803) 366-8371 or email us at success@bnacpa.com to see how we can support your goals.

BNA: Smarter Finances, Mastering Wealth Management