Why Estate Planning Should Be a Part of Your Financial Wellness Plan

20 August 2025

Let’s be honest. When you hear the words “estate planning,” what comes to mind? You’re probably thinking it’s something only millionaires or retirees need to worry about, right? Maybe something you’ll “get to later”? Well, I hate to break it to you—but later has a sneaky habit of turning into never.

Estate planning isn’t just some fancy legal jargon for the wealthy or the elderly. In reality, it’s a critical—and often overlooked—piece of your overall financial wellness puzzle. Yes, that includes you, even if you’re still building your career, raising kids, or just getting started with investing.

So grab a coffee and get comfy, because we’re about to dive into why estate planning absolutely deserves a spot in your financial wellness plan. And don’t worry—I’ll keep the legal mumbo jumbo to a minimum.

What Is Estate Planning, Anyway?

Let’s strip away the intimidating name. Estate planning is simply the process of deciding what happens to your stuff—your money, your home, your investments, even your pets—if something happens to you. That “something” could be death (yeah, sorry), but it could also be incapacity due to illness or an accident.

At its core, estate planning answers a few key questions:

- Who gets your assets?
- Who takes care of your kids or dependents?
- Who makes financial and medical decisions for you if you can’t?

It’s about making sure your voice is heard, even if you’re not able to speak for yourself.

Financial Wellness Isn’t Just About Saving and Investing

When people think of financial wellness, they tend to focus on budgeting, saving, paying off debt, and building investment portfolios. And yes, those are super important. But financial wellness is also about protection—protecting yourself, your family, and your assets from the unknown.

Estate planning acts like a seatbelt for your finances. You hope you never need it in an emergency, but if something goes sideways? You'll be really glad you buckled up.

Why You Need Estate Planning at Every Life Stage

You don’t need to wait until you own a mansion and have a yacht. Estate planning is relevant at every life stage. Let’s break it down:

In Your 20s & 30s

You might not have much in terms of assets yet, but you still have people who depend on you—maybe aging parents, or even a partner. You also have banking accounts, maybe a 401(k), and probably a digital life full of social media logins and online subscriptions.

Having a healthcare proxy and durable power of attorney is crucial. If something happens, who will make medical decisions for you? Who can access your accounts to pay bills or handle emergencies?

And guess what? Those student loans and credit cards don’t disappear on their own.

Married or Have Kids?

Planning for your family’s future becomes front and center. You’ll want to:

- Name guardians for your children (this is BIG).
- Set up a will or trust to distribute assets smoothly.
- Ensure your beneficiaries are updated (think life insurance and retirement accounts).

Having a plan in place means your loved ones aren’t left dealing with legal chaos while grieving.

In Your 50s & Beyond

This is prime time to evaluate your legacy. You may have accumulated more assets, and maybe even paid off your mortgage (bravo!).

Now is the time to think about:

- Tax planning
- Charitable giving
- Supporting grandchildren’s education
- Business succession if you're an entrepreneur

Bottom line: It’s not just about what you leave behind, but how you leave it.

Estate Planning Tools That Should Be in Your Arsenal

Okay, so what does estate planning actually look like? Here’s a quick cheat sheet of the common tools and documents you might need:

1. Will

The will is your voice after you're gone. It spells out who gets what, and it names guardians for minor children. Without it, your assets could be distributed based on state laws—not your wishes.

2. Trust

Trusts aren’t just for the ultra-rich. A living trust, for example, helps manage and distribute your assets without going through the time-consuming (and expensive) probate process. It also offers more privacy and control.

3. Power of Attorney (POA)

This document allows someone you trust to handle your financial matters if you're unable to. Think paying bills, managing investments, or accessing your bank accounts.

4. Healthcare Proxy / Advance Directive

These outline your medical preferences and appoint someone to make decisions on your behalf if you’re unable to communicate.

5. Beneficiary Designations

Did you know that certain assets—like life insurance, IRAs, and 401(k)s—get passed on outside of your will? Your named beneficiaries override anything else. So, make sure to keep them updated (especially after big life events like marriage or divorce).

The Emotional Side of Estate Planning

Let’s switch gears for a second. Estate planning isn’t just about money and paperwork; it’s also about emotions.

Imagine your family going through a painful loss... and on top of that, they’re dealing with court dates, frozen accounts, and arguments over who gets Nana’s antique ring. Not fun.

Estate planning gives your loved ones clear guidance. It reduces stress, prevents conflict, and provides peace of mind for everyone involved. It’s one of the most loving things you can do for your family.

Common Myths That Need Busting

Let’s tackle a few of the usual excuses people give for not prioritizing estate planning:

“I’m too young to worry about that stuff.”

Nope. Accidents and illness don’t care how old you are.

“I don’t have enough assets to make it worthwhile.”

Actually, estate planning is even more critical when you have limited assets—you want to make sure what you do have goes where it matters most.

“I already have a will—that’s enough, right?”

Not quite. A comprehensive plan includes more than just a will. Think POA, healthcare directives, and trusts.

The Financial Upsides of Estate Planning

Still need a little motivation? Estate planning isn't just about what happens after you’re gone—it can also help you while you’re still here.

Here’s how:

Tax Efficiency

Certain strategies in estate planning can minimize estate taxes, capital gains, and income taxes your heirs may face. That means more money stays in the family and less goes to Uncle Sam.

Asset Protection

Trusts and other legal tools can shield your assets from lawsuits, creditors, and even divorce settlements.

Smooth Business Transition

If you own a business, estate planning ensures a smooth transfer of leadership. Without it, your business could dissolve or end up in the wrong hands.

How to Get Started Without Overwhelm

If your head’s spinning, don’t worry—you’re not expected to figure it all out overnight. The key is simply to start.

Here are some baby steps to set you on the right path:

1. Take inventory. List out your accounts, properties, insurance, and digital assets.
2. Identify your goals. Who do you want to protect? What legacy do you want to leave?
3. Talk to your loved ones. Open up the conversation—yes, it might be awkward, but it’s necessary.
4. Work with professionals. An estate attorney and financial planner can help tailor a plan that fits your life and your budget.

Estate Planning = Financial Self-Care

Let’s circle back to the whole idea of financial wellness. Just like hitting the gym or eating vegetables, estate planning might not be your favorite task—but it’s one of those “adulting” moves that pays off big time.

Think of it as financial self-care. It’s one of the smartest, kindest, and most practical things you can do for both yourself and the people you love.

So whether you’re building your career, saving for your first home, or prepping for retirement, go ahead and make space for estate planning in your financial wellness plan. Your future self (and your family) will thank you.

Final Thoughts

Estate planning isn’t just for the wealthy or the elderly—it’s for everyone. And honestly, it’s not as scary or complicated as it sounds. With the right tools and guidance, you can build a plan that protects your hard work, honors your wishes, and gives you peace of mind.

So don’t wait until it’s "too late." Make estate planning a part of your financial wellness journey today. Think of it as writing the last chapter of your financial story—one where you’re in full control of the ending.