Estate Planning Checklist: 17 Things to Prepare Before Death

An in-depth estate plan prevents hardship for your loved ones and helps guarantee your personal wishes get fulfilled.

I walk you through step-by-step to build an estate planning checklist addressing your family, financial, medical, and legal needs.

What are the most important documents for estate planning?

These estate planning documents are essential to include in your binder to clearly address end-of-life care and distribution of your assets to beneficiaries:

• Advance directive: Legal documents including a living will, healthcare power of attorney, do-not-resuscitate (DNR) orders, and physician orders for life-sustaining treatment (POLST).
• Beneficiary designation: Be sure to list beneficiaries for your retirement accounts, financial accounts, and life insurance policies. The corresponding death benefit goes to the primary and contingent beneficiaries.     
• Durable power of attorney: Name a trustworthy person to make financial, legal, or medical decisions if incapacitated or deceased.
• Guardianship designation: Parents of young children should appoint legal guardians, such as a relative, friend, or godparent. This step can avoid a stressful court process that may result in naming a guardian not in your child’s best interest.
• Revocable living trust: This document helps avoid probate which can become pricey and time-consuming. You can place property and money in the trust and continue using these assets. 
• Will: Also known as a last will and testament, you define how to distribute your assets upon death and name beneficiaries. Notarizing your will brings more validity if a beneficiary or hopeful heir contests your wishes in court. 

The above documents are a good start for making an estate plan to tailor to your circumstances.

It’s also not too early to start and you can update your estate plan as your household and financial situation changes.

For example, I drafted my first plan after the birth of our first child and have made adjustments now that we have several children.

In the future, I will consider adding grandchildren as beneficiaries and update my asset inventory.   

As nobody is promised tomorrow, now is the best time to start. A well-crafted estate plan stops you and your spouse from dying intestate.

Your plan can prevent family feuds and expensive court proceedings while respecting your final wishes.

Estate Planning Checklist

This step-by-step checklist helps you organize your estate plan and avoid overlooking financial, legal, and medical conflicts.

1. Take inventory of most important assets.

Compiling a list of your physical valuables, financial accounts, and life insurance policies is the best starting point. 

Assets worth tracking include:

• Annuities
• Antiques and collectibles (books, flatware, trading cards, etc.)
• Art
• Bank accounts (savings, checking, money market, CDs)
• Bonds
• Business interests
• Cryptocurrency
• Digital assets (domains, travel loyalty points, royalty rights, video channels)
• Family heirlooms 
• Fine jewelry (earrings, necklaces, rings, watches)
• Health savings accounts (HSAs)
• Life insurance 
• Investment accounts
• Personal property
• Precious metals (gold, silver, platinum, and palladium)
• Real estate
• Retirement plans (401(k), IRAs, TSPs, pensions, etc.)
• Safe deposit boxes

Consider keeping a paper copy, digital spreadsheet, or both in a secure area.

Estate planners call this detailed inventory log a treasure map. Yours may look similar to this one.

Asset Type	Asset Description	Estimated Value	Debt/Liability	Owner/Beneficiary	Account or Serial Number
Primary Residence	House at 123 Oak St.	$750,000	$0	Jointly owned with spouse	Tax Parcel 32-6789
Investment Property	House at 953 Elm St.	$550,000	$0	Jointly owned with spouse	Tax Parcel 56-4321
401(k)	Acme Co. 401(k)	$1,000,000	$0	Jane Doe	Acct No. 38935
Life Insurance	20-year term life insurance expiring in 2038	$500,000	$35/month	Jane Doe	Acct No. 14973

Further, inform your spouse or estate executor to know where you keep your inventory catalog. 

When possible, list any additional owners, the designated beneficiary, account number, and login details such as passwords or keys.

For example, my wife’s grandfather recently passed and he kept an accurate log of his collectibles and their approximate worth.

His record keeping saved much time for his heirs to appraise his estate accurately. 

I personally recommend using Kubera to store digital copies of your inventory, estate planning guide and notes.

This powerful personal finance app also tracks your net worth. Your financial advisor and beneficiaries have read-only access to view everything in one place.

2. Create a last will and testament.

A last will and testament, simply known as a will. This should be the first legal document you draft since it lays the foundations for how your estate executor, survivors, and probate administrator distribute your assets.

There are two common misconceptions regarding wills:

1. Wills are automatically legally binding: Realistically, most states require two signatures and potentially a notary before becoming legally binding. Check your state law to see your specific requirements.
2. Legally-binding wills avoid probate: States still require many wills to endure some degree of probate to distribute certain asset types and determine the document’s legal validity. Small estates, jointly held assets, and living trusts are more likely to bypass probate. 

Shockingly, a 2021 Gallup poll finds that only 46% of Americans have drafted a will. The good news is that 64% of respondents age 65 or older or 61% of households with annual incomes exceeding $100,000 have a will and estate plan in place. 

You can make a will online or hire a local estate planning attorney and make it legally binding by following your state’s procedures. 

While an invalid non-legal will doesn’t offer as much protection for your personal desires, it can still provide helpful directions during probate.

3. Designate your beneficiaries.

Naming beneficiaries for your financial accounts, physical assets, and in your will makes the distribution process more transparent.

Be sure to complete the beneficiary designation form when opening new accounts and periodically updating your existing ones.

There are two different types of beneficiaries:

• Primary beneficiary: The first person or entity to receive the assets and death benefits. It’s possible to list multiple co-beneficiaries.
• Contingent beneficiary: Secondary people and entities to receive benefits if the primary beneficiary is unable or unwilling to collect benefits. 

It’s common to list your spouse, children, grandchildren, siblings, friends, and favorite charities as beneficiaries. 

You can designate a certain percentage or divide the payout proportionally for equal distribution. So, one child hypothetically gets 60% and the other gets 40% or each receives 50%.

There are additional minute differences between beneficiaries that apply to specific assets.

Beneficiary Type	How It Works
Revocable beneficiary	The policyholder can change the primary and contingent designations at any time without input from the named heir.
Irrevocable beneficiary	The designee must usually grant permission to change the named beneficiaries and corresponding benefit share.
Payable-on-death beneficiary	Liquid assets such as bank accounts, CDs, and life insurance with a cash payout.
Transfer-on-death beneficiary	Investment accounts such as IRAs, 401(k)s, and brokerage accounts transfer the shares in kind to prevent immediate liquidation.

Failing to name a proper beneficiary prevents a direct transfer. Instead, it can result in the asset going to the estate and potentially probate administration.

Here’s another personal example. My wife is a music teacher and inherited several instruments as the named beneficiary was an out-of-business music school.

So, the probate judge instructed the executor to bequeath the equipment to another studio.

4. Compile a list of all your debts and obligations.

Listing your monthly bills and outstanding loans goes beyond basic budgeting and paying off debt.

This exercise ensures your survivors and estate executors won’t miss any critical payments, such as:

• Auto loans
• Business loans
• Credit cards
• Family loans
• Home loans
• Insurance premiums
• Lines of credit
• Medical debt
• Personal loans
• Student loans
• Utilities (electric, gas, water, cable, internet, phone)

Compiling recent statements provides the most accurate account details and minimum monthly payment. You may also note which accounts are frequently used and where you keep your unused credit cards.    

5. Research a good estate executor.

You will want to choose an ethical and capable executor for your estate who’s of legal age and not legally incapacitated.

They might be your child, family member, or a close friend who may or may not be an estate beneficiary. 

You can also hire a professional executor whose pay is a percentage of the estate value. Sometimes, a neutral party or a qualified non-relative or friend is ideal.

Executor fees vary by state and usually won’t exceed 5% or a reasonable hourly rate for miscellaneous tasks. 

Prevalent estate executor duties include:

• Reading of the will
• Navigating probate
• Disbursing inheritance to beneficiaries
• Paying bills
• Negotiating with hospitals, insurance companies, and bill collectors
• Managing financial accounts and estate-related legal and tax matters
• Locating assets and personal belongings

It’s possible to name two executors to fulfill different roles. For instance, I have an acquaintance who is an executor where the husband and wife are on their second marriage.

He’s from the father’s side and the financial executor but the wife’s son is her medical executor.

Your named executor must agree to the position, and can decline later on even if they are named in the will.

For instance, they may not have the time to handle affairs or become estranged from the family.

The probate court will name an appropriate executor if you cannot find one. It can be a family member or a professional executor for hire.

6. Choose which directives you want to include.

Financial, legal, and medical advance directives prepare you and your executor for end-of-life and hardship scenarios.

These are uncomfortable topics to confront, but being proactive respects your final wishes and removes the moral burden from family and physicians.  

No two estate plans are alike and you must weigh which directives you need in place in case you become incapacitated or mentally unfit to continue making decisions.

Sadly, overlooking end-of-life care wishes is one of the most common estate planning mistakes.

Some of the most common directives include:

• Advance healthcare directive (ACHD): End-of-life care and medical treatment preferences for severe conditions such as dementia, stroke, or coma.
• Do-not-intubate (DNI) order: Instructs the medical staff not to intubate under certain circumstances.
• Do-not-resuscitate (DNR) order: Prohibits medical professionals from using cardiopulmonary resuscitation or an automated external defibrillator. 
• Durable medical power of attorney: For making financial decisions on your behalf.
• Living will: Emphasizes your wishes for handling a terminal illness. This is one form of an advanced directive. 
• Medical power of attorney: For making medical decisions on your behalf. This role goes by several names, including health care proxy.
• Physician orders for life-sustaining treatment (POLST): Similar to a medical prescription, this directive contains doctors’ orders for treating a serious illness when you’re in a hospital or nursing home. 

Some directives have state-specific requirements and you can add advance care planning forms to address palliative care, organ donation, and other wishes.

What happens when you don’t have advance directives or a living will?

It depends, but your spouse or children can usually serve as your proxy and make decisions on your behalf.

However, states may have another family member, physician, or legal expert manage the situation to fulfill your best interests.

7. List memberships or associations you belong to.

Listing your membership status with alumni associations, professional organizations, and affinity groups can help transfer any potential perks and discounts to your surviving spouse. 

Most membership groups offer insurance discounts to save money in retirement. A select few may even provide death benefits.

Periodically review your benefits guide to see what you’re eligible for. 

You may also consider including these groups in your estate planning guide to leave a final donation of cash, investments, or property.

One option is through a donor-advised fund (DAF).

8. Create a living trust.

A living trust has several advantages. Specifically, it’s easier to avoid probate and keep your estate private as probate proceedings and last wills go into the public record. 

There are two different types of living trusts to be aware of: 

• Revocable trust: The most common living trust, you (the grantor) can change or revoke its status without beneficiary consent as long as you are deemed mentally competent.
• Irrevocable trust: Beneficiaries must agree to all change requests. This setup is less common but has more tax and legal protections. High-litigation professions such as doctors or lawyers can reap the most benefits.

Other differences exist between each trust and you can establish sub-trusts for asset protection, insurance benefits, dependents, and estate tax minimization.

Your estate lawyer or financial advisor can help you compare your options.  

You don’t have to be ultra-rich to establish a trust. It can be worth making a trust when you have several valuable assets.

Depending on the complexity of your estate, initial setup costs from $100 to $3,000 to set up your trust and small ongoing administrative expenses usually apply.

I have several family and friends with different net worths and career stages that have trusts. One such friend is in their early 30s with young children but owns property and investments.

Another common misconception is that living trusts automatically avoid probate.

You can most likely bypass probate when transferring all of your ownership titles to the trust and immediately title new acquisitions into the trust instead of your name.

9. Research your state laws.

State-specific estate planning laws govern which estate planning documents you need for an iron-clad trust or will.

These policies impact wills and trusts.

There are also regulations addressing topics such as: 

• Asset distribution
• End-of-life decisions
• Power of attorney capacity
• Estate and inheritance taxes
• Out-of-state executors
• Property titling

Online and local services can design state-specific forms to comply with the various laws and codes.

They proceed through an estate planning checklist step-by-step to avoid coverage gaps.

10. Make copies of all your lists.

You will want to make at least one duplicate of your legal forms and inventory lists for safekeeping.

It’s also wise to keep paper copies of digital documents if you lose access to the storage host.

One suggestion is to have three copies:

1. Original copy: Give to your estate administrator
2. Second copy: Your spouse or another primary beneficiary
3. Third copy: Store in a home safe, safe deposit box, or another secure location

Tell your estate executor, trust administrator, and trusted loved ones to know where to look if you cannot provide documentation when needed.

11. Choose a power of attorney.

Selecting a power of attorney (POA) permits an individual or agent to make financial, legal, or medical decisions on your behalf.

You want to entrust this responsibility to somebody with your best interest at heart for these duties:

• Making property and money-related decisions
• Paying bills
• Signing documents

A spouse, family member, or best friend is the most frequent choice for this role.

You are the principal, and the power of attorney can make decisions on your behalf when you’re incapacitated or mentally unable to  

There are four different types of power of attorney designations.

Type of POA	Level of Authority
Durable power of attorney	The most common type with a general or limited scope. Power can go into effect immediately and can remain effective after the principal becomes incapacitated.
Springing power of attorney	Becomes effective upon triggering certain events or conditions, such as mental incapacitation.
Limited power of attorney	Have authority for specific transactions for a predetermined time period.
General power of attorney	Broad financial abilities such as signing checks, buying or selling property, and managing bank accounts with fiduciary duty.

The POA document should clearly define your level of authority and how long it lasts.

That’s been my experience when I have signed paperwork to serve as a financial and medical power of attorney.

12. Research law firm or use Trust & Will.

Compare several online and local estate planners to find the best services and customer ratings for your needs. 

Many households can draft their estate plans using Trust & Will.

The final product is personalizable and state-specific to protect your household and beneficiaries. 

Online wills start at $199 and trusts from $499. Either plan offers complimentary updates for the first year and then $19 annually for wills and $39 for trusts. 

You can spend notably less than with a lawyer and easily update your forms with 24/7 access.

Compared to Trust & Will, a local law firm can cost between $200 and $500 per hour for a total potential cost between $1,000 and $4,000 for an estate planning package.

So far, I have a simple situation and have been able to create an online will in less than an hour a couple of times after comparing different platforms. 

Complex estates will benefit from using a local law firm to draft their estate plan to avoid overlooking critical elements.

Interview several estate lawyers to gauge their experience level and personability. You want to confidently develop a long-term relationship with trusty counsel.

A local lawyer is also the better option when you have complicated family dynamics or need hands-on guidance.

They may also have a clearer understanding of which local legal strategies are producing the best estate plans right now.

13. Review your retirement accounts.

Ensure your beneficiary designations for your various retirement plans correspond with your personal wishes and estate plans.

These accounts pay out benefits directly to the named heirs, bypassing probate and estate plan execution. 

If there’s a conflict, the beneficiary designation on file with the plan custodian takes precedence over your estate planning documents. 

For example, an estranged relative will receive their assigned share when you write them out of your will but forget to update the beneficiary designation form for your 401(k) or IRA.

Your retirement accounts enter probate if you don’t name eligible beneficiaries or your estate to inherit the remaining funds. 

14. Prepare taxes for estate obligations.

Your estate can be subject to several federal and state taxes when transferring assets:

• Federal estate tax: The IRS collects an estate tax kicks in for estate values above $13.61 million in 2024. This threshold applies to estates nationwide.
• State taxes: A handful of states collect an inheritance tax. Additionally, 12 states and the District of Columbia require a state-level estate tax. Exemptions differ by state.
• Inherited investment taxes: Inherited IRAs and tax-deferred retirement accounts have tax-reportable distributions at the beneficiary’s ordinary tax rate. Additionally, federal law may require beneficiaries to liquidate the entire account within 10 years of inheriting.   

Estate planners and tax lawyers can optimize your federal and state tax situation so your beneficiaries inherit a larger sum.

I also recommend being proactive so they won’t encounter a surprise tax bill that can be challenging to afford. 

For example, advice-only financial planner Sean Mullaney recommends giving your Roth IRA and 401(k) to your loved ones so they can make tax-free withdrawals.

Subsequently, your tax-deferred traditional accounts can go towards non-profit causes that don’t pay income tax. 

If you can afford it, you may also decide to withdraw from your tax-deferred accounts first so you pay the taxes instead of your heirs.

This can mean tapping more than your required minimum distribution (RMD) for the year instead of resorting to your Roth accounts.

15. Update insurance policies and annuities.

You also want to verify that your insurance policies and annuity plans have current beneficiaries.

They may need these funds to help cover your final medical expenses, funeral and burial costs, or replace your income if you’re not retired yet.

Utilize this exercise to make sure you have adequate coverage for these policy types:

• Disability insurance
• Life insurance
• Long-term care
• Short-term care

You may also consider adding “riders,” also known as endorsements or amendments, to receive a portion of your benefits before death under certain conditions.

For instance, you may have a terminal illness or need long-term care.

I have child riders on my term life policy providing a small death benefit if my children perish during the coverage term.

This rider only increases my monthly premium by a few dollars in exchange for several thousand in coverage if the worst happens.  

Insurance riders are optional and can provide valuable benefits when you struggle to pay the bills. As a reminder, determine if the extra cost is worth the potential benefit. 

16. Authorize “Transfer on Death” designations.

Transfer on death (TOD) legal arrangements for bank accounts, investment accounts, and physical assets help the beneficiary skip the probate process.

They are easy to sign and update electronically.

You can revoke the TOD deed anytime and it doesn’t become effective until you die.

Be sure to include all designations with your estate plan lists so the executor is fully aware of how to transfer your assets to the appropriate beneficiary.

17. Review your documents regularly.

Scheduling periodic reviews of your various estate planning documents makes sure your estate plan remains current and accurately reflects your wishes.

An annual review is usually sufficient to determine if you need any updates.

Start out by focusing on these categories:

• Update beneficiaries due to birth, death, marriage, and divorce
• Record buying and selling of assets
• Reappraise asset values and remaining debts

Your review sessions may prompt you to appoint new beneficiaries and guardians, modify your will and directives, and pursue a different estate tax strategy.

Outdated documents can delay distributing your assets if you outlive the named beneficiaries. It also opens the door to family disputes and increases the need for a probate judge to step in and reach a verdict.

In short, your estate encounters delays and unplanned legal expenses.

Next Steps

Drafting a thorough estate planning checklist listing your assets, beneficiaries, and final wishes is worth the effort to provide peace of mind for your family.

The clear-cut instructions make it substantially easier for your executor and heirs to proceed and cherish your legacy.