Five Tips to Get Your Estate Plan In Order Now
We're more than halfway through the year. Do you know how your estate plan is? If not, here are some tips to get it done in 2025.
Estate planning is a must for most Americans, yet it often falls on the need-to-do but never-get-around-to list.
As it stands, 55% of Americans don’t have any estate documents, and only 31% have a basic will, according to a recent survey by estate planning firm Trust & Will. That’s worse than the 46% who had a will back in 2021 when Gallup surveyed American adults.
While lots of people blow it off, estate planning is important, even if you don’t have millions of dollars you want to leave to your heirs. Without one, your assets could end up in probate, go to the wrong person, cause family strife, create an unnecessary tax burden, or all of the above.
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The good news is it doesn't have to be an arduous process or break the bank. Whether you have a plan or need to create one, here are five estate planning tips for 2025.
1. Create a will if you don’t already have one
There are lots of reasons people don’t have an estate plan. They don’t have the time, they don’t think anything will happen to them or they think they don’t have enough assets to warrant one.
But an estate plan that includes a last will and testament, a financial power of attorney, and an advance healthcare directive or living will is important for everyone.
The last will and testament spells out how to distribute your assets when you die, allows you to name guardians for your children, and names an executor to manage your estate. Without it, your heirs could end up in probate court for years.
A financial power of attorney names who will take care of your finances, pay your bills and make financial decisions for you if you become incapacitated.
An advanced healthcare directive/living will is similar to a financial power of attorney, but enables you to lay out the type of medical treatment you want if you cannot speak for yourself. It also enables you to designate someone to make any medical decisions.
“The biggest red flag is not having any estate plan whatsoever,” says Douglas Boneparth, a CFP and president of Bone Fide Wealth. “It's not great when you have kids, assets, and people you love and are responsible for.”
To create a will and estate plan, you have two options: work with a trust and estate attorney to draft the documents, or you can leverage technology to DIY. Several websites will help you create these legal documents.
2. Plan for your digital footprint
Whether it's your online presence on social media sites like Facebook and Instagram, your digital subscriptions to Netflix or Spotify, or your online investment and bank accounts, these days everyone has some form of a digital footprint that you may want to protect in the event of your death.
A law, known as the Revised Uniform Fiduciary Access to Digital Assets Act (RUFADDA), which passed in 2015, addresses that. It creates a legal framework pertaining to how executors, trustees and other fiduciaries can access and manage the digital assets of a deceased person.
Under the law, digital assets are to be handled the same way as physical assets. At last count, 47 states follow this law. The only three that don’t are Louisiana, Massachusetts and Oklahoma.
To make it easy on your loved ones when you pass, Maggi Keating, a CFP at FBB Capital Partners, says it's important to designate a digital executor.
“It's not just in regards to your crypto holdings, it's all your online presence, from social media accounts to online subscriptions," says Keating. “These things need to be dealt with in a legal way.”
When creating a digital executor, you can also dictate what you want to happen with your online accounts, whether it’s passing your Netflix subscription on to your spouse or requiring Facebook to delete your account to protect your privacy. “It's a very 2025 estate planning topic,” she says.
You don’t need to hire an attorney for this one, but you can. Boneparth says you can write everything down in what he calls a death note and store it in your safe or put it in an email. If you have an extensive digital footprint, you may want to hire an attorney to craft one for you.
For DIYers, follow these steps:
- Take inventory of all your digital assets
- Store all your passwords and logins somewhere secure
- Assign someone to handle your digital accounts when you pass
3. Consider taking advantage of exemptions even if they are permanent for now
The Big Beautiful Bill made the provisions of the Tax Cuts and Jobs Act, passed in late 2017, permanent. It also did one better, setting the lifetime exclusion for gifts and estates at $15 million per individual ($30 million per married couple), with additional inflation adjustments in 2027 and subsequent years. Previously, it was $13.99 million annually.
While the tax provisions are permanent, that doesn't stop a future Congress from lowering the exemption amounts. That's why, if you are wealthy and already plan to give money to your heirs, now may be a good time to amp up your giving to save on taxes.
If you’re uncomfortable giving your children that much money, you can create an irrevocable trust that can benefit your children, grandchildren and great-grandchildren.
An irrevocable trust takes the money out of your estate and also creates protections for your heirs.
4. Gift more while the markets are down
The markets have been volatile in 2025. While you may be bemoaning the down days, don't. Instead, take advantage of declines in your retirement account to give your heirs more stock, which could eventually appreciate.
Let’s say you have 10,000 shares of a stock worth $100 per share. That amounts to $1 million. If the price of that stock has declined, you can give more shares to get to the $1 million threshold. If and when that appreciates, your heir has more money.
“Sometimes market turbulence provides opportunities,” says Ringham.
5. Don’t procrastinate
Whether you need to make sure your estate plan matches your current wants and needs or you haven't taken the time to create one, now is the time to act.
Nobody likes to think about death or disability, but procrastinating could harm your loved ones in the event of your death.
“Get it done,” says Boneparth. “I fully understand how morbid and depressing the topic of death and disability is. But the sooner you get it done, the sooner you’ll sleep well at night.”
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