Understanding what your estate includes

Your estate includes more than your home and bank accounts. It may include:

• Retirement plans
• Life insurance
• Investments
• Real estate
• Business interests
• Annuities
• Personal property
• Instructions related to healthcare decisions and guardianship

The essential elements of an estate plan

Wills

A will outlines who should receive your property. It can also name a guardian for minor children and the person who will manage your affairs after you pass away (your executor).

Trusts

Trusts can add control and privacy to your plan. They can spell out when and how assets pass to beneficiaries and, in some cases, help your family avoid probate, the court process used to validate a will.

• More control over when beneficiaries receive assets
• Potentially faster settlement
• Often more privacy than probate

Powers of Attorney

A financial power of attorney names someone you trust to handle financial matters if you can’t. A healthcare power of attorney or medical directive names someone to make medical decisions for you if you’re unable to.

Beneficiary designations

Some assets generally pass based on the beneficiary designations you’ve named. Examples include:

• Retirement accounts
• Life insurance
• Many annuities

Where annuities fit into estate planning

Annuities may support an estate plan in several ways. They can help provide retirement income during your lifetime and, depending on the contract, may provide a death benefit to beneficiaries if you pass away before annuitization.

• Create retirement income
• Provide a death benefit to beneficiaries, depending on the contract
• Potentially pass proceeds outside of probate

Annuities can also support specific goals. For example, some people use them to provide ongoing income for a spouse. Others use them to distribute assets to children or grandchildren over time rather than as a lump sum.

Gifting strategies and tax considerations

Gifting can help you share assets during your lifetime. In some cases, it may also reduce the size of your taxable estate. Here are key federal limits for 2026:

• Up to $19,000 per person, per year, without filing a federal gift tax return
• Up to $38,000 per recipient for married couples who combine their exclusions
• $15,000,000 lifetime exemption per individual (gifts above the annual limit may apply)

These limits can change over time, and tax rules may evolve. A financial professional or tax advisor can help you understand how gifting may fit into your broader plan.

Probate and why many people try to avoid it

Probate is the legal process used to settle an estate. When required, it can take time, create additional costs, and in some cases become part of the public record.

In many situations, planning ahead can help reduce probate. Depending on your situation, that may include:

• Trusts
• Beneficiary designations
• Certain ownership arrangements
• Some annuities

Estate planning is an ongoing process

Estate planning isn’t a one-time task. Major life events can change your needs, including:

• Marriage or divorce
• The birth of a child
• The loss of a loved one
• A significant change in your finances

Peace of mind comes from preparation

Estate planning is about taking care of the people and priorities that matter most to you. A clear plan can help:

• Reduce confusion
• Help protect your loved ones
• Make it easier to carry out your wishes

With the right plan in place, you can feel more confident today and help make things simpler for the people you love in the future.