Make things clearer for the people you love.

The four basics

Most people do not need a complicated plan. Most people do need these four things in place, and they are the ones families most often find missing.

1. A will

A will says who receives your property and who manages the estate. If you have minor children, it is also where you name the guardian you would want for them. Without a will, state law decides. Read how to make a will, or see what happens if you die without one.

2. A power of attorney

This names someone to handle your money and legal matters if you cannot. Without one, a family may have to ask a court for authority, which takes time and money. A power of attorney generally ends at death, so it does not replace a will. See what power of attorney is and the types.

3. A healthcare directive

A living will and a healthcare proxy record your medical wishes and name who speaks for you when you cannot. Names and forms differ by state. See what a living will is.

4. Up-to-date beneficiaries

Retirement accounts, life insurance, and many bank accounts pass to the person named on the account, not to the person named in your will. An out-of-date name, such as a former spouse, can undo an otherwise careful plan. See how beneficiary designations work.

Do you need a trust?

Not everyone does. A living trust can let property pass without probate and can keep details out of the public record, but it costs more to set up and needs to be funded to work. Whether it is worth it depends on your state, your property, and your family.

These articles compare the options:

• Will vs. living trust: which one do you actually need?
• What is a living trust?
• How to set up a living trust
• How to avoid probate

Starting the conversation with a parent

This is often the hardest part. Many parents worry that talking about a will means talking about dying, or that their children want their money. A few approaches tend to help:

• Start with your own plan. "I just updated my will and it made me think about yours" is easier to hear than a request.
• Ask where things are before asking what is in them. You can start with where the documents are kept and who their attorney is, without asking about amounts.
• Make it about reducing the burden. Explain that you want to follow their wishes and not guess.
• Accept a partial answer. A first conversation that only covers who has the documents is still progress.

Our guide to estate planning for aging parents goes through this in more detail, and Medicaid estate recovery explains one cost-of-care issue families often raise.

What it costs and who can help

Costs range widely depending on whether you use an online service or an attorney, and on how complicated your situation is. Our article on what estate planning costs compares the options, and how to make a will online covers the legal rules and risks of the do-it-yourself route.

Rules differ by state, including how wills are signed and witnessed. Check your state guide for specifics, and consider an attorney licensed in your state if you own a business, have a blended family, or care for a family member with special needs.