More Than Just a Will–Why Estate Planning Isn't Just for a Select Few

RetireAdvisers℠ of Pension Consultants, Inc.
Apr 20
8 min read

Key Takeaways:

Estate planning isn’t just for the wealthy. It applies to anyone with assets or loved ones.
Regardless of size, your estate includes everything you own, and having a plan in place helps provide clarity around how it is handled.
Without a plan, decisions may be handled through default legal processes.
Assets may be distributed based on state rules rather than personal preferences, which can create delays, added costs, and uncertainty.
Getting started doesn’t have to be complex. It often begins with a few foundational steps.
Reviewing beneficiaries, identifying decision-makers, and putting basic documents in place can help bring structure to your overall plan.

A recent survey from Trust & Will found that 56% of adults in the United States do not have any estate planning documents in place, a number that has increased by one percent since last year (2025) [1]. But did you know that everyone has an estate? It’s true!

Your estate includes everything you own. This can range from your home and financial accounts to personal belongings and insurance policies. Regardless of size, it represents the collection of assets that will eventually need to be handled and distributed. The challenge is that these decisions are often delayed, and it often comes down to how estate planning is perceived. It is commonly associated with wealth, complexity, or something to address later in life. As a result, many individuals delay taking action or assume it does not apply to their situation. However, without a plan in place, those decisions may be handled based on default rules rather than personal preferences.

At its core, estate planning is about taking time to outline how your assets are handled, who is responsible for decisions, and how different pieces come together. It can also include considerations for situations where you may be unable to make decisions during your lifetime.

Rather than being a one-time task, estate planning is an ongoing process that can evolve as your life, finances, and priorities change.

Estate planning is not limited to a specific group. It is a way to bring clarity to how decisions are handled and how assets are passed along, regardless of the size of an estate.

Why Assumptions Can Create Gaps

A common belief is that assets will naturally go where they are intended. In practice, that is not always the case.

Without documented direction, financial accounts, property, and personal assets may be handled according to legal processes and default rules. These processes are designed to provide structure, but they may not reflect individual preferences or family dynamics.

This can lead to:

Delays in accessing funds
Additional administrative steps
Costs associated with legal proceedings
Uncertainty for family members

When no plan is in place, decisions are not avoided. Instead, they are handled through legal processes that are designed to apply broadly rather than reflect individual preferences. If someone becomes unable to manage their affairs, a court may need to appoint a person to make financial or personal decisions on their behalf. This process can involve additional time, oversight, and administrative steps, and it may not always align with what the individual would have chosen.

At death, assets that are held individually and do not have designated beneficiaries are typically distributed according to state laws. These rules determine who receives what, often based on predefined structures rather than personal intent. In some cases, this can lead to outcomes that differ from what someone may have expected, particularly for families with more complex dynamics. Planning ahead provides the opportunity to outline these decisions in advance rather than relying on a standard process.

Why Estate Planning Is Often Delayed

Many people recognize the importance of planning but still postpone it. This is often driven by a few common misconceptions. Some believe their financial situation is not complex enough to require a plan. Others assume that family members will be able to sort things out without formal documentation. There is also a tendency to rely solely on beneficiary designations without considering how all pieces fit together.

These assumptions can create gaps because estate planning involves more than a single document or account designation. It is a collection of decisions that work together to provide a clearer picture of how things are handled.

Estate Planning vs. A Will: What’s the Difference?

A will is often the most familiar part of estate planning, but it is only one piece of a broader framework. A will typically outlines how certain assets are distributed and may include instructions for personal matters, such as guardianship. It provides direction, but it does not address every aspect of how decisions are handled.

An estate plan takes a more comprehensive view. It considers how assets are transferred, who is responsible for making decisions, and how different scenarios may be handled over time. Rather than relying on a single document, it brings together multiple components to create a more complete picture.

Building an Estate Plan: Where to Start

One of the first considerations is identifying who would step in to make decisions if needed. This includes both financial and medical situations where you may not be able to act on your own. These roles are often filled by a spouse or close family member, but it is also common to name a secondary option.

It is also important to think about who would be responsible for carrying out your wishes. This may involve overseeing the distribution of assets or handling certain responsibilities on behalf of others. The role can vary depending on the situation, which makes it worth considering carefully.

From there, it becomes important to look at how assets are structured and how they may be transferred:

Beneficiary Designations

Reviewing and updating beneficiaries on financial accounts is often one of the most direct ways to influence how assets are passed along.

These designations typically take precedence over other documents, which makes them an important place to start. Keeping them current can help reduce uncertainty and simplify the process for those involved.

Living Will and Durable Power of Attorney

These documents address situations where an individual may not be able to make decisions independently.

A living will outlines preferences related to medical care, while a durable power of attorney designates someone to make financial or legal decisions on an individual’s behalf during their lifetime if needed. That authority generally ends at death. These documents are often overlooked but can play an important role in defining responsibility during unexpected circumstances.

A Basic Will

A will provides direction for assets that are not covered by beneficiary designations. This can include personal property or other items that do not have a predefined transfer structure.

There’s a common saying, “where there’s a will, there’s a way.” While it’s often used in a different context, it applies here in a practical sense. Having a will in place can create a clearer path for how certain decisions are handled.

Considering a Trust

In some situations, a trust may offer additional flexibility in how assets are managed and distributed. This is more commonly considered for individuals with more complex situations, but it can also be used to outline specific preferences over time rather than distributing assets all at once. This becomes especially relevant when thinking about how an inheritance may be handled after it is received.

Over the next several decades, a significant amount of wealth is expected to pass from one generation to the next. Some estimates suggest this could involve more than $80 trillion in assets changing hands [2]. At the same time, many individuals report feeling unprepared to manage a large financial windfall. In one survey, over 70% of respondents said they were not confident in their ability to handle an inheritance, and also reported uncertainty about where to turn for guidance [2].

Without a structure in place, assets that are inherited outright are typically received all at once, with no direction on how they should be used, managed, or preserved over time. In some cases, that can lead to decisions that may not align with long-term intentions.

A trust can provide a different approach by allowing assets to be distributed over time or according to specific guidelines. This can be helpful in situations where there is a desire to provide ongoing support, maintain a level of oversight, or create more structure around how assets are used.

This type of planning is not necessary for everyone, but it may be worth considering depending on your goals, family dynamics, and overall situation.

Life Events That Can Shape a Plan

Estate planning is not a one-time decision. It often evolves based on life events and changing circumstances. For example, the arrival of children can introduce new considerations, such as naming a guardian or thinking through how assets may be managed on their behalf.

As financial situations change over time, additional factors may come into play, including career changes, home ownership, or shifts in long-term goals. Rather than being tied to a specific age or milestone, estate planning tends to develop alongside life itself.

How Assets Are Actually Transferred

Not all assets are handled the same way, and understanding this can be an important part of the planning process. Some accounts, such as retirement plans or life insurance, may pass directly to named beneficiaries. In many cases, these designations guide how those assets are distributed. Other assets may be handled through instructions outlined in a will, while some may follow legal processes depending on how they are structured.

What Happens to My 401(k) If I Die?

When you enrolled in your retirement plan, you were likely asked to name a beneficiary. Your beneficiary is who would receive your retirement account if you were to pass away. Simple as that, right?

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Planning for the Unexpected

Estate planning is often associated with what happens later in life, but it also includes situations that may arise along the way. If someone becomes unable to make decisions independently, having the appropriate documents in place can help define who is able to step in and how decisions are handled.

This is where documents like a power of attorney or healthcare directive can play an important role. These are not always top of mind, but they can be a meaningful part of a broader plan.

Additional Considerations

Families with unique dynamics, such as blended families, may need to think more carefully about how assets are distributed. Others may want to consider how assets are managed for younger beneficiaries or individuals who may need additional support. In some cases, individuals may also choose to incorporate charitable giving into their plans, depending on their goals and priorities.

These decisions are highly personal and depend on individual circumstances.

How Estate Planning Connects to Retirement

Estate planning is often discussed separately from retirement planning, but the two are closely related. Retirement planning focuses on how assets are accumulated and used over time. Estate planning addresses how those same assets are handled later on.

Decisions around savings, investment strategies, and income distribution all contribute to what remains and how it is passed along. Understanding how your assets may be used throughout retirement can also provide helpful context for what may be left to distribute. This is where tools like an Income Needs Analysis can play a role. By evaluating income sources, spending needs, and how savings may be drawn over time, it can help illustrate how different decisions may impact long-term outcomes.

While it is not an estate planning tool, it can be a useful way to better understand how your retirement strategy and overall plan fit together. If you’re interested in understanding how your current plan aligns with your retirement goals, our team can walk through this analysis with you.

Next On Your Agenda: Estate Planning

Estate planning does not require everything to be completed at once. It can begin with small, manageable steps and evolve over time. Even simple actions, such as reviewing account information or identifying key decision-makers, can contribute to a more organized approach.

It is also not limited by wealth, and it is not defined by complexity. At its core, it is about providing direction and reducing uncertainty. Taking time to review and organize these elements can help create a more complete picture of how decisions may be handled in the future. If you would like to learn more about how estate planning fits into your retirement plan, you can connect with a RetireAdvisers℠ consultant.

The concepts expressed herein represent the views and opinions of Pension Consultants, Inc., and are not intended as legal, tax, or investment advice for any specific individual, account, or plan.

Sources:

[1] LoCastro, Mark. “Trust & Will 2026 Estate Planning Report.” Trust & Will, 26 Mar. 2026, trustandwill.com/learn/estate-planning-report-2026.

[2] “Most Americans Aren’t Ready for the “Great Wealth Transfer.”” Citizens, 2024, www.citizensbank.com/learning/great-wealth-transfer-survey.aspx.