Estate Planning Basics Every Retiree Needs (Even Without Millions)

The four essentials

1. Last will and testament — distributes anything that doesn't have a beneficiary.
2. Durable power of attorney — lets someone act on your finances if you're incapacitated.
3. Healthcare directive / medical POA — your medical wishes and proxy.
4. HIPAA authorization — lets doctors share information with your designated person.

Beneficiaries override the will

Retirement accounts, life insurance, and POD/TOD accounts pass via beneficiary designation, not your will. Review them every 3 years and after any life event.

When to add a trust

• You own real estate in multiple states (avoid multiple probates).
• You have a special-needs heir.
• Estate exceeds federal exemption (~$13.6M in 2026).
• You want privacy (wills become public, trusts don't).

DIY vs. attorney

• DIY (LegalZoom, Trust & Will) — fine for simple estates, married couple, single state.
• Attorney ($1,500–$5,000) — worth it if business interests, blended family, special-needs, real estate in multiple states.

Bottom line

Estate planning isn't for billionaires — it's for anyone whose family would suffer from disorganization if they died or became incapacitated. The basic package costs $200–$500 DIY or $1,500+ with an attorney, and it's the kindest gift you can leave behind.