When you think about estate planning, what comes to mind?
A thick stack of legal papers? Confusing terms like “per stirpes” or “trustee”? Maybe even a fear of probate court?
You’re not alone.
At True Blue Financial, we believe that estate planning is about far more than documents and even finances. It’s about values, clarity, and stewardship across generations. Whether you want to leave a gift to your grandchildren, protect your spouse’s financial future, or avoid common mistakes that cause confusion or delays, our team can work with you and your estate planning attorney to help determine your needs and goals.
Let’s break down what estate planning really involves and how to make it a tool for confidence, not a source of stress.
Why Estate Planning Matters Even If You’re Not “Rich”
If you’ve worked hard, saved diligently, and want to protect your family’s future, estate planning is for you. It’s not just for the ultra-wealthy. In fact, many of the most critical estate planning mistakes happen in middle-class households, especially those with property, retirement accounts, and kids or grandkids to care for.
Estate planning answers questions like:
- Who will receive your assets — and how?
- Who will manage your affairs if you can’t?
- How can you reduce taxes or avoid delays?
- How will your family handle sensitive issues like guardianship or business succession?
So you can see why it’s vital to have an estate plan even if you assume they’re only for those with a high net worth. Think of an estate plan as a roadmap for your loved ones to follow after you pass away.
The Elements of an Estate Plan
Before we jump into common questions and considerations regarding estate plans and wealth transfer, let’s break down what actually goes into an estate plan. In general, an estate plan or strategy has eight parts.
1. Will
In a 2024 survey, Caring.com found that only 32% of Americans have a will. A will is the cornerstone of your estate. This legal document is crucial for proving what you own, how you want to distribute your assets, and who cares for any dependents you have at the time of your death. A will can also help business owners successfully and efficiently transition their assets. If you don’t have a will in place, then any questions connected to your estate will get resolved through the courts’ probate process. (This isn’t always a bad thing—more on probate later.)
Wills can be contested. Unfortunately, as important as they are, wills have shortcomings. Even though they are a legally binding document, people can challenge them in court. In fact, the probate court will send out notice of the will to anyone who might have grounds to contest it. And if someone steps forward, the potential arises for a lengthy battle in probate court. Once estates go to probate, all details become public record, meaning anyone can find out how much you left and to whom. This is where a trust might be beneficial. We’ll talk more about trusts later in the blog.
2. Letter of Intent
With your will in place, another document that can help guide your estate is a letter of intent. While a will provides legal directives, you can provide a more personal voice by giving additional written instructions. Your letter is not an official legal document, nor can it override your will. However, the letter can work in tandem with your other estate documents. You’ll want to update your letter of intent several times a year to reflect any details that have changed since your last check-in. Also, the more people involved in your estate that have copies of the letter, the better. Consider giving copies to your spouse, children, closest friends, and executor.
Common details to include in a letter of intent:
- Complete list of all assets
- Estimates of your assets’ current market values
- Wishes for passing down heirlooms
- Instructions for funeral or memorial desires
- Location of titles/deeds for real estate
- Charities you want to support
While they are not legal directives, letters of intent are extremely helpful:
- Letters of intent can help inform probate judges: This personal letter can help clarify to the judge what your intentions are should questions arise.
- They can back up invalid wills. Sometimes, courts can find wills to be invalid. Should this happen, a letter of intent could help inform how you want to distribute your assets.
- They can help in a medical emergency. Should an accident or emergency leave you unable to express your wishes, your letter of intent can speak for you.
3. Power of Attorney (POA)
Typically, a power of attorney document authorizes someone to handle financial and some legal decisions when you become incapacitated. The person you designate as a power of attorney doesn’t have to be an attorney. Anyone you trust, such as a family member or friend, can serve in this role for you. You can even designate more than one person, assigning different responsibilities to each. The power of attorney can go into effect immediately or upon your incapacity or any other trigger event you specify. A power of attorney does not need to go through any additional legal proceedings. Individual states can have various power of attorney laws. So, consider becoming familiar with your state’s specific regulations in order to make a more informed decision.
There are a few different types of power of attorney designations:
- General power of attorney: An agent under this agreement can serve any and all needs, as your state allows. They can do things like sign checks, sell property, and more.
- Limited power of attorney: You can designate an agent under this agreement to support specific legal needs for limited timeframes. For example, you may choose to designate a loved one to manage only your retirement accounts for a few years.
4. Health Care Directives
- A living will: provides specific instructions about your medical care if you become incapacitated and unable to communicate. It goes into effect immediately upon your incapacity and doesn’t need to go through any additional legal proceedings.
- Durable medical power of attorney: authorizes someone to make medical decisions on your behalf. And, like the living will and the power of attorney, it does not need to go through any additional legal proceedings.
- HIPAA release clause: The federal Health Insurance Portability and Accountability Act (HIPAA) of 1996 protects the confidentiality of your medical information. By signing a release approval, you’ll permit hospitals and medical facilities to release your details to your designated health care proxy, such as your durable medical power of attorney agent.
Medical emergencies can and do happen, but when you have health care directives in your estate strategy, it can provide both you and your loved ones peace of mind for the future. To include medical care planning in your estate strategies, start by organizing a variety of legal needs and documents, including:
5. Provisions for 2nd and 3rd Marriages
Forty percent of new marriages in the U.S. include a spouse who’s been married at least once before. As a result, a large swath of Americans must plan for 2nd (and 3rd) marriages in their estate strategies.
Whereas a 1st marriage typically builds a new foundation for your estate needs, subsequent marriages create additional layers of complexity. You may have children from your 1st or 2nd marriage and new assets to manage. Not building the estate strategies you need to protect your family and estate could leave you in a legal bind should something happen.
Here are common estate needs to consider when remarrying:
- Prenuptial agreements: Prenuptial agreements may get a bad rap, but these legal documents are actually a critical estate strategy for remarriages. In fact, they are the only way you can prove who owns certain assets within a marriage. A prenuptial agreement can also help you put financial protections in place for your children, should a spouse die. State laws can vary on how to address prenuptial agreements, so be sure to check your own state’s requirements.
- Updated legal documents: Once you remarry, your estate documents may need updating to align with your new life stage. You’ll want to look over your will, powers of attorney, trusts, and health care directives, and revise them to include your new spouse, as needed.
- Beneficiary considerations: You may need to update your beneficiary listings for your accounts to include your new spouse, if you want them to inherit the assets. Just note: Your beneficiaries can also list their own beneficiaries after you die. This detail could mean excluding your children if your spouse designates other people — even if you told your children otherwise. So, you may want to consider this detail carefully as you create strategies that reflect your estate wishes.
6. Guardianship Designations
Having children means including their needs in your estate strategies. One common area people should prepare for is legally naming guardians for their children. If something happened and you and your spouse could no longer care for them, a guardianship designation helps ensure you can choose who raises your children. You may also want to consider naming a back-up.
The difference between a guardian and a trustee: While a guardian and trustee can both help provide care for your children, they aren’t one and the same. A guardian specifically serves in a custodial role, providing the ongoing care and guidance for them, such as where they go to school and what they eat for dinner. Meanwhile, a trustee is their financial guardian who helps them with money matters, like receiving their beneficiary payments and paying any bills for them. These do not need to be the same person.
7. Trusts
Trusts can be another powerful estate management tool. A trust is a legal entity that can own property. Properly structured trusts can completely avoid probate and avoid the delays and expenses that often accompany probate. Trusts are not a matter of public record; they’re a tool for maintaining privacy. Trusts can provide very effective management of your assets and their distribution to your heirs. And, even after your death, trusts can provide some measure of control over how assets distribute to children and other beneficiaries. In addition, trusts are much more difficult to contest than a will. Using a trust involves a complex set of tax rules and regulations. Before moving forward with a trust, consider working with a professional who is familiar with these dynamics.
8. List of Accounts and Passwords
If you were to pass away suddenly, do your executor and loved ones know how to access all your accounts? Do they even know all the accounts you own? Chances are, probably not. Considering that 86% of Americans store their online passwords in their heads, the vast majority of people aren’t preparing their executors to access their account details.
Consider tracking the following accounts:
- Employment benefits: If you receive health care or retirement accounts through your employer, then you’ll want to capture these details for your estate executor. Also, include your HR contact for this benefit.
- Financial accounts: Gather all the account details that connect to your assets. This information could include investment accounts, credit cards, safety deposit boxes, and other financial items.
- Online accounts: Your life online may need management from your executor and loved ones in order to settle your estate. Be sure to list your account login credentials for everything, from your social media accounts to online streaming channels and more.
Now that we’ve covered the basics of what goes into an estate plan, let’s explore some of the nuances and points of confusion.
Common Estate Planning Questions (and Straight Answers)
“Do I really need a trust?”
It depends.
Trusts are powerful tools for avoiding probate, controlling how and when assets are distributed, protecting privacy, and reducing taxes. But not everyone needs one. In some cases, especially for simpler estates, a well-drafted will and proper beneficiary coordination may be enough.
We help clients decide whether a trust fits their goals or if a more straightforward approach might be better.
True Blue Insight: Be wary of one-size-fits-all advice from the internet. Many articles are written by attorneys who default to recommending a trust whether it’s necessary or not.
“How do I avoid probate?”
Probate isn’t always the villain it’s made out to be. Yes, it can be time-consuming and public, but it may still be a reasonable path depending on your assets, family dynamics, and planning goals.
That said, many people choose to minimize or avoid probate by:
- Titling property jointly (with rights of survivorship)
- Using transfer-on-death (TOD) or payable-on-death (POD) designations
- Creating and funding a revocable living trust
- Keeping beneficiary designations updated and aligned with your wishes
- Filing a ladybird deed, if your state allows, for property transfer
The Most Commonly Overlooked Assets
Even when people have a solid estate plan, we often discover two areas that fall through the cracks:
- Bank Accounts: Not properly titled or lacking TOD/POD designations
- Property: Homes, cottages, or land not titled in the name of a trust, joint ownership or a ladybird deed
A quick review of your accounts and deeds can save your loved ones a major headache.
Wills, Trusts, and the Roles That Come With Them
The terminology alone can be a hurdle. Here’s a quick breakdown on the roles within wills and trusts:
- Executor (also called a Personal Representative): The person who carries out your will after your death
- Trustee: The person who manages the assets in your trust, either during your lifetime (if you become incapacitated) or after your death
- Power of Attorney (POA): A person you appoint to make financial or medical decisions on your behalf while you’re alive but unable to act after your death.
- Beneficiaries (or heirs): Those who benefit from or inherit assets in your estate (lands, items, money, etc.)
Choosing someone trustworthy and capable is more important than choosing someone close to you. Many people choose a loved one to be their POA or the executor of their estate. However, we advise caution in these situations, as those close to you may not be as objective as a professional.
A Word About Beneficiaries (That Most People Miss)
One of the biggest estate planning misconceptions is that your will controls everything.
It doesn’t.
Any asset with a named beneficiary, like an IRA, 401(k), life insurance, or annuity, will go directly to that person, no matter what your will says.
This can cause problems if:
- You forgot to update the beneficiary (like an ex-spouse still listed)
- You name a minor child (who can’t legally inherit directly)
- You choose “per stirpes” vs. “pro-rata” and don’t understand the difference
What’s “per stirpes” vs. “pro-rata”?
- Per stirpes (Latin for “by roots” or “by branch,” as in a family tree): If a beneficiary dies before you, their descendants (children or grandchildren) receive their share
- Pro-rata (“in equal proportions): If a beneficiary dies before you, the remaining beneficiaries split the share evenly
We help you clarify your intentions so there’s no confusion for your loved ones down the road.
Who Will Care for Your Kids or Grandkids?
If you have minor children, dependents (like a child with special needs), or plan to leave assets to minors, your plan should address:
- Guardianship: Who will raise them or be responsible for their care?
- Asset management: Who will oversee the money until they’re adults?
A trust can be especially helpful here, but every situation is unique. When you’re working on your estate plan, our team is happy to work with you and your attorney to answer your questions.
Estate Planning with True Blue Financial: Simplifying the Complex
At True Blue, we work alongside you and your attorney to take estate planning out of the legal weeds and bring it into real life. When you have a team of professionals working together, you can create a clear plan that honors your values, protects your loved ones, and gives you confidence.
We help you:
- Get your documents and accounts aligned
- Decide if a trust is right for your goals
- Coordinate with your attorney and tax professionals
- Create a legacy plan that’s tax-efficient and intentional
- Avoid common pitfalls and confusion
Let’s Make Sure Your Legacy Reflects Your Life
If you don’t have an estate plan, now is always the right time to get started.
A few simple updates today can save your family months of stress — and help you leave behind more than money: you’ll leave clarity, care, and a lasting sense of purpose.
Want to get started?
Schedule a conversation with a True Blue advisor today. We’d be happy to work with you and your estate planning attorney, and our first consultation is always complimentary.
Securities offered through LPL Financial Member FINRA/SIPC. Neither True Blue Financial nor the named broker/dealer gives tax or legal advice.
This information is not intended to be a substitute for specific individualized tax or legal advice. We suggest that you discuss your specific situation with a qualified tax or legal advisor.
