Estate planning is not just for the wealthy. A will, a durable power of attorney, and a health care directive cover the basics, and beneficiary designations on accounts and life insurance often matter more than the will itself.
Account titling determines what happens at death: joint ownership passes to the survivor, payable-on-death designations pass directly to named beneficiaries, and trusts can control the timing and conditions of distributions.
Review designations after every major life event, marriage, divorce, a child's birth, a move to another state. Outdated designations are the most common, and most costly, estate planning mistake.
Key takeaways
- Beneficiary designations often override the will
- Titling determines how assets transfer at death
- Review documents after every major life event
