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Estate planning is about more than just deciding who inherits your property. It can also help you determine who manages your finances, cares for dependents and makes certain decisions if you become incapacitated. Yet according to Caring.com’s most recent Wills and Estate Planning Study, only 24% of respondents reported having a will. 1 The following seven tips can help you organize the information and documents you need to get started.
A financial advisor can help you coordinate investments, retirement accounts and other financial assets with your broader estate plan.
Why Is Estate Planning Important?
Estate planning isn’t just for wealthy households; an estate plan can help determine how certain assets are managed and transferred, who may make financial or medical decisions on your behalf, and who may care for minor children if you pass or become incapacitated.
A will is one of the most common estate planning documents. It can provide instructions for distributing property that passes through your probate estate, name an executor to administer the estate and nominate a guardian for minor children. However, requirements for creating and executing a valid will vary by state.
An estate plan can also involve setting up a trust to manage how certain assets are held and distributed. Depending on the type of trust, how it is structured and how assets are transferred into it, a trust may also help certain property avoid probate or accomplish specific tax-planning goals.
Other parts of an estate plan can include reviewing beneficiary designations, naming financial and healthcare agents through powers of attorney, establishing guardianship preferences and documenting end-of-life healthcare wishes. Some people may also include charitable gifts, funeral instructions or plans for managing a business or other complex assets.
If you die without a valid will, state intestacy laws generally determine who inherits property that passes through your probate estate. Assets with valid beneficiary designations, certain jointly owned property and property held in a trust may transfer outside of a will, depending on how they are structured. If you have minor children, a court may also need to appoint a guardian if no legally effective arrangement is in place.
Estate planning can help reduce these uncertainties by coordinating how different assets and decisions are handled, rather than relying on state default rules or solely on a will.
7 Tips to Kickstart Your Estate Plan
Building an estate plan starts with understanding what you own, what you owe and how different assets would transfer after your death. Here are seven steps that can help you kickstart your estate plan.
| Estate Planning Step | What to Review | Why It Matters |
|---|---|---|
| Itemize physical assets | Real estate, vehicles, jewelry, collectibles and other property | Helps establish what your estate owns and what may need to be transferred |
| Document financial and intangible assets | Bank and investment accounts, business interests and intellectual property | Identifies assets that may not be as obvious as physical property |
| List debts | Mortgages, loans, credit cards and other obligations | Helps your executor identify potential estate liabilities |
| Review retirement accounts | IRAs, 401(k)s and other retirement plans | Beneficiary designations can determine who receives these assets |
| Update life insurance | Policies and beneficiary designations | Helps ensure death benefits go to the intended recipients |
| Appoint and review beneficiaries | Primary and contingent beneficiaries across accounts | Helps coordinate asset transfers with the rest of your estate plan |
| Draft or update your will | Executor, property instructions and guardianship wishes | Establishes instructions for probate assets and other estate matters |
1. Itemize Your Physical Assets
Start by listing the physical property you own, including real estate, vehicles, jewelry, artwork, collectibles and other valuable personal property. For larger assets, record how the property is titled, an approximate value and whether it is subject to a mortgage, loan or other lien.
For example, suppose you own a home worth approximately $450,000 and a car worth $25,000. Your inventory could note each property’s estimated value, ownership and where the title or deed can be found. This gives your executor or other representative a starting point for identifying and eventually administering those assets.
2. Document Financial and Intangible Property
Your estate can also contain assets that aren’t physical property. These could include checking and savings accounts, brokerage accounts, ownership interests in a business and intellectual property such as patents, trademarks or copyrights. Some intangible assets may require a professional valuation, particularly when a business or intellectual property is involved.
For example, if you have a $75,000 savings account, you may be able to add a payable-on-death (POD) or transfer-on-death (TOD) designation naming a beneficiary. When you die, the remaining balance can generally transfer directly to that beneficiary rather than passing through your probate estate. Documenting the account and reviewing its beneficiary designation can help ensure it transfers according to your estate plan.
3. List All of Your Debts
An estate inventory should include liabilities as well as assets. Make a list of mortgages, credit cards, auto loans, personal loans and other outstanding obligations, along with information that can help your executor identify the creditor and account.
For example, imagine that you have a $220,000 mortgage, a $15,000 car loan and $8,000 in credit card balances when you die. Valid estate debts generally must be addressed as part of the estate administration process before remaining property can be distributed, although the treatment and priority of debts depend on applicable law and the type of obligation.
4. Review Your Retirement Accounts
Review the beneficiary designations on your retirement accounts, including IRAs, 401(k)s and other employer-sponsored plans. Retirement benefits are generally paid according to the beneficiary designation and terms of the account or plan, rather than instructions in a will. Certain employer plans also provide special protections for spouses.
For example, suppose your IRA still names your sister as beneficiary, even though your will says that you want your property divided among your children. Changing the will alone generally doesn’t update the IRA beneficiary. You would typically need to change the beneficiary designation with the financial institution holding the account.
5. Update Your Life Insurance
Your life insurance policy should also be reviewed periodically, particularly after marriage, divorce, the birth of a child or the death of a beneficiary. Life insurance proceeds generally go to the beneficiary named on the policy. A will typically does not change that designation unless the policy proceeds are payable to the estate.
For example, if your life insurance policy names your brother as beneficiary but your will leaves your estate to your spouse, the policy designation could still direct the insurance proceeds to your brother. Reviewing the policy alongside your other estate planning documents can help identify conflicts before they become a problem.
6. Appoint and Review Your Beneficiaries
Beneficiary designations can apply to more than retirement accounts and life insurance. Depending on the account and applicable state law, you may also be able to name beneficiaries for certain bank, brokerage and other financial accounts, as we’ve previously mentioned. Review both primary and contingent beneficiaries so there is a backup if your first choice dies before you.
For example, you might name your spouse as the primary beneficiary of an account and your two children as contingent beneficiaries. If your spouse dies before you, the contingent designation could determine who receives the account. Marriage, divorce, births and deaths are all good reasons to review beneficiary designations across your estate plan.
7. Draft an Official Will
A will establishes instructions for property that passes through your probate estate. Among other things, it can identify who should receive property, name an executor to administer the estate and nominate a guardian for minor children. Requirements for creating and executing a valid will vary by state, so an estate planning attorney can help with more complex situations.
For example, a parent with two children could use a will to name a sibling as executor, nominate a guardian for minor children and provide instructions for how probate property should be distributed. Without a valid will, state intestacy laws generally determine who inherits probate property rather than the deceased person’s unwritten wishes.
Bottom Line
Estate planning starts with understanding what you own, what you owe and how your assets would transfer if you die. Creating an inventory, reviewing debts and beneficiary designations and preparing a will can help establish the foundation of a broader estate plan. Trusts, powers of attorney and advance healthcare directives may also play a role depending on your assets, family and planning goals. A financial advisor can help you coordinate financial assets with your estate planning goals, while an estate planning attorney can help prepare legal documents that comply with applicable state law.
Tips for Estate Planning
- A financial advisor can help you create an estate plan that aligns with your goals. SmartAsset’s free tool matches you with vetted financial advisors who serve your area. You can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
- If you have a sizable estate, estate taxes at the state and federal levels could be hefty. One way to maximize inheritance for your beneficiaries is to gift portions of your estate in advance to them, or even set up a trust.
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Article Sources
All articles are reviewed and updated by SmartAsset’s fact-checkers for accuracy. Visit our Editorial Policy for more details on our overall journalistic standards.
- “2025 Wills and Estate Planning Study.” Caring: The Free Senior Living Advisors, Sept. 17, 2025, https://www.caring.com/resources/wills-survey. Accessed Sept. 23, 2026.