Estate Planning Isn't Just for the Ultra-Wealthy

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When people hear the phrase "estate planning," they often think it's something reserved for the extremely wealthy — high-net-worth individuals with multiple properties, complex portfolios or family businesses.

But in my experience working with clients across West Michigan, estate planning is valuable for almost everyone, regardless of their net worth.

Many of my clients have built their wealth over time through consistent saving, steady careers and practical financial decisions. While they might not consider themselves "wealthy," their assets — a paid-off home, retirement accounts and life insurance — can easily add up to seven figures.

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And yet, a common theme I hear is, "We probably don't have enough to need an estate plan." The reality is that estate planning is less about the size of your estate and more about creating structure and clarity for the future.

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The author of this article is a participant in Kiplinger's Adviser Intel program, a curated network of trusted financial professionals who share expert insights on wealth building and preservation. Contributors, including fiduciary financial planners, wealth managers, CEOs and attorneys, provide actionable advice about retirement planning, estate planning, tax strategies and more. Experts are invited to contribute and do not pay to be included, so you can trust their advice is honest and valuable.

Why it matters for everyday families

Estate planning provides a clear outline for how your affairs will be managed — during your lifetime and after. Without it, the process of settling your estate can become more complicated for your family.

At a minimum, it's a good idea to have:

A will to document how you would like your assets to be distributed
Powers of attorney to authorize someone you trust to make financial and health-care decisions on your behalf, if needed
Updated beneficiary designations on retirement accounts and insurance policies, as these take precedence over a will
Clear communication with family members or designated representatives about where key documents are located

For many households, a revocable living trust can also be an effective tool. While trusts are often associated with high-net-worth families, they can provide benefits such as potentially avoiding probate and maintaining privacy, depending on your circumstances.

Considering the tax implications

Even if your estate isn't large enough to trigger federal estate taxes, other tax considerations can still apply. Inherited IRAs, capital gains on appreciated assets or state-level taxes can impact what beneficiaries ultimately receive.

Working with financial and tax professionals can help you explore strategies, such as Roth conversions, charitable giving or other tax-efficient transfers, that align with your goals.

A practical approach to planning

In the Midwest, many people are humble about what they've achieved. They focus on working hard, saving consistently and caring for their families. That modesty, however, can lead some to underestimate the importance of having a clear plan.

If you've built assets over time — whether through your home, retirement savings or other investments — you have an estate. Taking time to organize how those assets will be managed and transferred can help your loved ones handle future decisions more smoothly.

Final thoughts

Estate planning isn't just for the ultra-wealthy. It's a foundational part of a sound financial strategy — one that allows you to make informed choices about how your assets are managed and distributed.

By addressing these details now, you create a more transparent and efficient process for those who may handle your affairs later.

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Disclaimer

This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

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As founder and president of Michigan-based Thatcher Wealth Management, William Thatcher helps his clients create successful retirement plans tailored to their specific needs. He passed the Series 65 securities exam and is a Registered Investment Adviser Representative (RIAR). He is licensed in life and health insurance and has earned the National Social Security Association's National Social Security Adviser designation.