Estate Planning

Estate Planning Basics

Disclaimer: This skill provides general legal literacy and educational information to help you understand legal concepts and processes. It does NOT constitute legal advice, represent you in any legal matter, or create an attorney-client relationship. Laws vary by jurisdiction and change over time. Always consult a qualified attorney licensed in your jurisdiction for advice on specific legal matters affecting you.

When to Use

Use this skill when:

• User asks about estate planning
• User needs guidance on estate planning topics
• User wants a structured approach to estate planning

Do NOT use when:

• Request requires professional consultation beyond educational guidance
• User needs emergency assistance

Questions to Ask the User First

1. What life stage are you in? (single adult, newly married, new parent, mid-career, approaching retirement, retired, experienced a major life change)
2. Do you currently have any estate planning documents? (will, trust, power of attorney, healthcare directive)
3. What prompted you to think about estate planning? (new baby, marriage, divorce, death of loved one, accumulation of assets, health concern, general planning)
4. What state do you live in? (estate laws vary significantly)
5. Do you have minor children? (guardianship is critical)
6. Do you own real estate? If so, in how many states?
7. What is your approximate estate value? (determines complexity and potential estate tax exposure)
8. Do you have any special circumstances? (blended family, child with special needs, business ownership, significant debts, international assets)

Step 1: Core Estate Planning Documents

Every adult should have these documents regardless of age or wealth:

The Essential Four

Additional Documents to Consider

Step 2: Will Creation Considerations

What a Will Does

• Names an executor (personal representative) to manage your estate
• Directs who receives your assets (that are not controlled by beneficiary designations or trusts)
• Names guardians for minor children
• Can create testamentary trusts for minor beneficiaries
• Can specify funeral/burial wishes

What a Will Does NOT Do

• Control assets with named beneficiaries (life insurance, retirement accounts, POD/TOD accounts)
• Control jointly-owned property (passes to surviving owner)
• Control assets in a trust
• Avoid probate (a will goes through probate)
• Protect assets from creditors

Will Planning Worksheet

WILL PLANNING WORKSHEET

PERSONAL INFORMATION:
Full Legal Name: {{NAME}}
Date of Birth: {{DOB}}
State of Residence: {{STATE}}
Marital Status: {{STATUS}}

EXECUTOR (Personal Representative):
Primary: {{NAME}} -- Relationship: {{REL}} -- Location: {{CITY, STATE}}
Alternate: {{NAME}} -- Relationship: {{REL}} -- Location: {{CITY, STATE}}

GUARDIANS FOR MINOR CHILDREN (if applicable):
Primary: {{NAME}} -- Relationship: {{REL}} -- Location: {{CITY, STATE}}
Alternate: {{NAME}} -- Relationship: {{REL}} -- Location: {{CITY, STATE}}

Note: Discuss with proposed guardians BEFORE naming them.
Consider: values, parenting style, financial stability, location,
willingness, age, existing children.

BENEFICIARIES:
Primary beneficiaries:
1. {{NAME}} -- Relationship: {{REL}} -- Share: {{%}}
2. {{NAME}} -- Relationship: {{REL}} -- Share: {{%}}
3. {{NAME}} -- Relationship: {{REL}} -- Share: {{%}}

Contingent beneficiaries (if primary predeceases you):
1. {{NAME}} -- Relationship: {{REL}} -- Share: {{%}}

SPECIFIC BEQUESTS:
Item: {{DESCRIPTION}} -- To: {{BENEFICIARY}}
Item: {{DESCRIPTION}} -- To: {{BENEFICIARY}}
Item: {{DESCRIPTION}} -- To: {{BENEFICIARY}}

CHARITABLE BEQUESTS:
Organization: {{NAME}} -- Amount/Percentage: {{AMOUNT}}

RESIDUARY ESTATE (everything not specifically bequeathed):
To: {{BENEFICIARY}} -- Share: {{%}}

TRUSTS FOR MINORS:
[ ] Create trust for minor beneficiaries until age: {{AGE}}
    Trustee: {{NAME}}
    Alternate Trustee: {{NAME}}

SPECIAL INSTRUCTIONS:
- Funeral/burial wishes: {{INSTRUCTIONS}}
- Pet care: {{INSTRUCTIONS}}
- Digital assets: {{INSTRUCTIONS}}

Will Validity Requirements (General -- Verify in Your State)

GENERAL WILL REQUIREMENTS:
- Testator must be 18+ years old (varies slightly by state)
- Testator must be of sound mind
- Will must be in writing (typed; handwritten "holographic"
  wills accepted in some states)
- Signed by the testator
- Witnessed by 2 adults (3 in some states) who are not beneficiaries
- Some states require notarization
- Self-proving affidavit recommended (simplifies probate)

Step 3: Power of Attorney Types

Financial Power of Attorney

FINANCIAL POA PLANNING:

Types:
- DURABLE: Remains effective if you become incapacitated (RECOMMENDED)
- SPRINGING: Only takes effect upon incapacitation (harder to use in practice)
- LIMITED: Restricted to specific transactions or time periods
- GENERAL: Broad authority over all financial matters

Agent (Attorney-in-fact):
Primary: {{NAME}} -- Relationship: {{REL}}
Alternate: {{NAME}} -- Relationship: {{REL}}

Powers to consider granting:
[ ] Banking transactions (deposits, withdrawals, account management)
[ ] Real estate transactions (buying, selling, managing)
[ ] Investment management
[ ] Tax filing and IRS communications
[ ] Insurance claims and management
[ ] Business operations
[ ] Government benefits applications
[ ] Gift-making authority (important for tax planning)
[ ] Trust management
[ ] Digital account access

Powers to consider restricting:
[ ] Self-dealing (agent benefiting themselves)
[ ] Gifting limits
[ ] Real estate sales (require court approval?)
[ ] Changes to beneficiary designations

Healthcare Power of Attorney

HEALTHCARE POA PLANNING:

Healthcare Agent:
Primary: {{NAME}} -- Phone: {{PHONE}} -- Relationship: {{REL}}
Alternate: {{NAME}} -- Phone: {{PHONE}} -- Relationship: {{REL}}

Considerations for choosing an agent:
[ ] Will they follow YOUR wishes even if they disagree?
[ ] Are they emotionally capable of making difficult decisions?
[ ] Are they geographically accessible to your medical providers?
[ ] Do they understand your values regarding medical care?
[ ] Have you discussed your wishes with them in detail?

Powers to grant:
[ ] Consent to or refuse medical treatment
[ ] Access medical records (HIPAA authorization)
[ ] Choose healthcare providers and facilities
[ ] Make end-of-life decisions per your advance directive
[ ] Authorize organ donation
[ ] Authorize autopsy
[ ] Make mental health treatment decisions

Step 4: Healthcare Directives (Living Will)

Decisions to Address

ADVANCE DIRECTIVE DECISIONS:

Consider your wishes for each scenario:

IF TERMINALLY ILL (no reasonable expectation of recovery):
- Life-sustaining treatment: CONTINUE / WITHHOLD / WITHDRAW
- Artificial nutrition/hydration: YES / NO / TIME-LIMITED
- Mechanical ventilation: YES / NO / TIME-LIMITED
- CPR (resuscitation): YES / NO
- Dialysis: YES / NO / TIME-LIMITED

IF PERMANENTLY UNCONSCIOUS:
- Life-sustaining treatment: CONTINUE / WITHHOLD / WITHDRAW
- Artificial nutrition/hydration: YES / NO / TIME-LIMITED

GENERAL PREFERENCES:
- Pain management: PRIORITIZE COMFORT / PRIORITIZE CONSCIOUSNESS
- Organ donation: YES (all organs) / YES (specific organs) / NO
- Experimental treatments: OPEN TO / REFUSE
- Hospice/palliative care preference: YES / NO
- Preferred hospital/facility: {{NAME}}
- Religious/spiritual considerations: {{NOTES}}

ADDITIONAL WISHES:
{{PERSONAL_STATEMENT_ABOUT_VALUES_AND_QUALITY_OF_LIFE}}

Step 5: Beneficiary Designations

Critical Understanding

Beneficiary designations on accounts supersede your will. This is one of the most common estate planning mistakes.

Beneficiary Audit Worksheet

BENEFICIARY DESIGNATION AUDIT

Review and update beneficiaries on ALL of the following:

RETIREMENT ACCOUNTS:
[ ] 401(k) -- Provider: {{NAME}} -- Beneficiary: {{NAME}}
[ ] IRA -- Provider: {{NAME}} -- Beneficiary: {{NAME}}
[ ] Roth IRA -- Provider: {{NAME}} -- Beneficiary: {{NAME}}
[ ] Pension -- Provider: {{NAME}} -- Beneficiary: {{NAME}}
[ ] 403(b) -- Provider: {{NAME}} -- Beneficiary: {{NAME}}

INSURANCE:
[ ] Life insurance -- Company: {{NAME}} -- Beneficiary: {{NAME}}
[ ] Life insurance #2 -- Company: {{NAME}} -- Beneficiary: {{NAME}}

BANK ACCOUNTS:
[ ] POD (Payable on Death) -- Bank: {{NAME}} -- Beneficiary: {{NAME}}
[ ] TOD (Transfer on Death) -- Institution: {{NAME}} -- Beneficiary: {{NAME}}

INVESTMENT ACCOUNTS:
[ ] Brokerage TOD -- Firm: {{NAME}} -- Beneficiary: {{NAME}}

OTHER:
[ ] HSA -- Provider: {{NAME}} -- Beneficiary: {{NAME}}
[ ] Annuity -- Company: {{NAME}} -- Beneficiary: {{NAME}}

COMMON MISTAKES TO AVOID:
- Naming "my estate" as beneficiary (forces probate, loses tax benefits on retirement accounts)
- Failing to update after marriage, divorce, or death of beneficiary
- Not naming contingent beneficiaries
- Naming a minor as direct beneficiary (requires court-appointed conservator)
- skipping to update after moving to a community property state

Step 6: Basic Trust Concepts

Revocable Living Trust

When a Trust May Be Appropriate

• You own real estate (especially in multiple states)
• You want to avoid probate (saves time, cost, and publicity)
• You have minor children (trust can manage assets until they are older)
• You have a blended family (trust can protect both sets of children)
• You or a beneficiary has special needs
• You want privacy (probate is public)
• Your state has slow or expensive probate

When a Trust May NOT Be Necessary

• Small estate with few assets
• Assets are primarily in accounts with beneficiary designations
• You live in a state with simplified probate procedures
• Cost of creating and maintaining a trust outweighs benefits

Step 7: Digital Asset Planning

Digital Asset Inventory

DIGITAL ASSET INVENTORY

FINANCIAL ACCOUNTS:
- Online banking: {{INSTITUTION}} -- URL: {{URL}}
- Investment platforms: {{LIST}}
- Cryptocurrency: {{EXCHANGES_AND_WALLETS}}
- PayPal/Venmo: {{ACCOUNTS}}
- Revenue-generating websites: {{LIST}}

SOCIAL MEDIA:
- Facebook: {{USERNAME}} -- Preference: MEMORIALIZE / DELETE
- Instagram: {{USERNAME}} -- Preference: {{CHOICE}}
- Twitter/X: {{USERNAME}} -- Preference: {{CHOICE}}
- LinkedIn: {{USERNAME}} -- Preference: {{CHOICE}}
- Other: {{PLATFORM}} -- Preference: {{CHOICE}}

EMAIL ACCOUNTS:
- Personal: {{ADDRESS}} -- Provider: {{NAME}}
- Work: {{ADDRESS}} -- Provider: {{NAME}}

CLOUD STORAGE:
- Google Drive / iCloud / Dropbox / OneDrive: {{ACCOUNTS}}
- Important files stored there: {{DESCRIPTION}}

SUBSCRIPTIONS:
- {{SERVICE}} -- Cost: ${{MONTHLY}} -- Cancel upon death: YES / NO
- {{SERVICE}} -- Cost: ${{MONTHLY}} -- Cancel upon death: YES / NO

DIGITAL MEDIA:
- Purchased music, books, movies: {{PLATFORMS}}
- Note: Most digital media licenses are non-transferable

DOMAINS AND WEBSITES:
- {{DOMAIN}} -- Registrar: {{NAME}} -- Hosting: {{NAME}}

INTELLECTUAL PROPERTY:
- Published works: {{LIST}}
- Software/code: {{REPOSITORIES}}
- Creative works: {{LIST}}

ACCESS INFORMATION:
Location of password manager or master list: {{LOCATION}}
Digital estate planning tool used: {{IF_ANY}}

Digital Estate Planning Steps

1. Create an inventory of all digital assets (above)
2. Use a password manager and share master access with your trusted person
3. Designate legacy contacts where platforms allow (Google, Facebook, Apple)
4. Include digital assets in your power of attorney
5. Add digital asset provisions to your will or trust
6. Consider state law (Revised Uniform Fiduciary Access to Digital Assets Act -- adopted by most states)

Step 8: Estate Planning Checklist by Life Stage

Young Adult (18-30, single, no children)

[ ] Durable financial power of attorney
[ ] Healthcare power of attorney
[ ] Advance directive
[ ] HIPAA authorization
[ ] Basic will (even simple assets need direction)
[ ] Beneficiary designations on any retirement/insurance accounts
[ ] Digital asset plan

Newly Married

All of the above, PLUS:
[ ] Update all documents to reflect marriage
[ ] Review and update beneficiary designations
[ ] Consider joint ownership of major assets
[ ] Review life insurance needs
[ ] Discuss estate planning goals with spouse
[ ] Update emergency contacts

New Parents

All of the above, PLUS:
[ ] Name guardians for children in will (CRITICAL)
[ ] Discuss with proposed guardians
[ ] Consider life insurance (10-12x annual income as starting point)
[ ] Create testamentary trust or revocable trust for children
[ ] Set trust distribution ages (not all at 18)
[ ] Open 529 education savings accounts
[ ] Update all beneficiary designations

Mid-Career / Growing Assets

All of the above, PLUS:
[ ] Review estate tax exposure (federal exemption: $13.61M in 2024; check current)
[ ] Consider revocable living trust
[ ] Review and increase life insurance
[ ] Consider umbrella liability insurance
[ ] Business succession planning (if business owner)
[ ] Charitable giving strategy
[ ] Review all documents every 3-5 years

Approaching/In Retirement

All of the above, PLUS:
[ ] Review beneficiary designations on all retirement accounts (critical for tax planning)
[ ] Consider Roth conversions for estate planning
[ ] Long-term care insurance or planning
[ ] Review trust provisions
[ ] Downsize/simplify asset structure
[ ] Create detailed letter of intent
[ ] Organize all financial documents for executor
[ ] Discuss plans with adult children

After a Major Life Change

UPDATE AFTER:
[ ] Marriage or divorce
[ ] Birth or adoption of a child
[ ] Death of a spouse, beneficiary, or named agent
[ ] Significant change in financial situation
[ ] Move to a new state
[ ] Diagnosis of serious illness
[ ] Purchase or sale of major assets
[ ] Retirement
[ ] Starting or selling a business

Step 9: When to Hire an Attorney

You Should Hire an Estate Planning Attorney If:

• You have children (guardianship is too important to risk)
• Your estate exceeds $1 million (or lower if your state has estate tax)
• You own real property, especially in multiple states
• You have a blended family
• You own a business
• You have a beneficiary with special needs
• You want to create a trust
• You have been through a divorce
• You have complex assets (international, closely-held business, crypto)
• You want to minimize estate or gift taxes

How to Find an Estate Planning Attorney

1. State bar association referral service
2. American College of Trust and Estate Counsel (ACTEC) -- actec.org
3. National Academy of Elder Law Attorneys (NAELA) -- naela.org
4. Ask your financial advisor, CPA, or insurance agent for referrals
5. Verify credentials: licensed in your state, focuses on estate planning

Questions to Ask a Prospective Attorney

ATTORNEY INTERVIEW QUESTIONS:

1. What percentage of your practice is estate planning?
2. How many estate plans have you drafted?
3. What is your fee structure? (flat fee vs hourly)
4. What documents are included in a basic estate plan?
5. How long will the process take?
6. Do you provide ongoing updates when laws change?
7. What happens to my documents if you retire or leave the firm?
8. Do you work with my financial advisor and CPA?
9. What is the expected total cost for my situation?
10. Do you handle trust administration and probate as well?

Estate Planning Document Locator

DOCUMENT LOCATOR

Store this form in a safe but accessible place and share the
location with your executor and/or trusted family member.

Original will location: {{LOCATION}}
Trust document location: {{LOCATION}}
Power of attorney location: {{LOCATION}}
Healthcare directive location: {{LOCATION}}
Life insurance policies: {{LOCATION}}
Retirement account statements: {{LOCATION}}
Bank account information: {{LOCATION}}
Property deeds: {{LOCATION}}
Tax returns (last 3 years): {{LOCATION}}
Safe deposit box: {{BANK}} -- Key location: {{LOCATION}}
Password manager master access: {{INSTRUCTIONS}}
Financial advisor: {{NAME}} -- {{PHONE}}
Attorney: {{NAME}} -- {{PHONE}}
CPA/Accountant: {{NAME}} -- {{PHONE}}
Insurance agent: {{NAME}} -- {{PHONE}}

This skill provides general estate planning information. Estate planning documents have specific legal requirements that vary by state. Work with a licensed attorney to ensure your documents are valid and achieve your intended goals.

Output Format

ESTATE PLANNING OUTPUT
======================

Section 1: Assessment / Analysis
- Key findings
- Recommendations

Section 2: Action Plan
- Step-by-step guidance
- Timeline if applicable

Section 3: Resources
- Relevant references
- Next steps

Example

Input: "Help me get started with estate planning"

Output: A structured estate planning plan tailored to the user's specific situation, following the process outlined above.

Edge Cases

• Incomplete information: Ask clarifying questions before proceeding. Do not assume details the user has not provided.
• Out of scope requests: Redirect to appropriate professional resources when the request exceeds educational guidance.
• Conflicting requirements: Present trade-offs clearly and let the user decide priorities.