Estate Planning Worksheet

Calculate your estate value, assess potential taxes, and evaluate your estate planning readiness.

Estate Planning Essentials

1Why Estate Planning Matters

Estate planning isn't just for the wealthy. It's about protecting your family, minimizing taxes, and ensuring your wishes are honored.

✓Avoid probate: Save time, money, and privacy
✓Protect minor children: Name guardians in a will
✓Minimize taxes: Strategic planning can save hundreds of thousands
✓Healthcare decisions: Ensure your wishes are followed

📊 Key Statistics

• 67% of Americans don't have a will
• Average probate cost: 3-7% of estate value
• Probate timeline: 6 months to 2+ years
• Federal exemption 2024: $13.61M individual / $27.22M married

2Essential Estate Planning Documents

📜 Last Will & Testament

• Names executor to manage your estate
• Designates guardians for minor children
• Specifies asset distribution
• Must go through probate court

🏠 Revocable Living Trust

• Avoids probate entirely
• Provides privacy (not public record)
• Can include incapacity provisions
• More control over distributions

⚖️ Durable Power of Attorney

• Authorizes someone to handle finances if incapacitated
• "Durable" means it continues if you're incapacitated
• Can be immediate or "springing"

🏥 Healthcare Directive

• Living will: medical treatment preferences
• Healthcare proxy: designates decision-maker
• HIPAA authorization: allows access to records

3Federal Estate Tax (2024)

Individual Exemption: $13,610,000

Estates under this amount pay no federal estate tax

Married Couple: $27,220,000

Portability allows unused exemption to transfer to spouse

Tax Rate: 40%

On amounts exceeding exemption

⚠️ Important: The exemption is scheduled to drop to ~$7M in 2026 if Congress doesn't act. Plan accordingly.

4State Estate & Inheritance Taxes

12 states + DC have their own estate taxes with lower thresholds:

• Oregon: $1M

• Massachusetts: $2M

• Minnesota: $3M

• Illinois: $4M

• Maryland: $5M

• Hawaii: $5.49M

6 states have inheritance taxes (paid by beneficiaries):

Iowa, Kentucky, Maryland, Nebraska, New Jersey, Pennsylvania

💡 Estate Planning Strategies

• Annual gift exclusion: $18,000/person/year (2024) tax-free
• 529 superfunding: 5 years of gifts at once ($90K/person)
• Charitable giving: Reduce estate and get income tax deduction
• ILIT: Life insurance outside estate
• GRAT: Transfer appreciation tax-free

• Family LLC: Valuation discounts on family assets
• QPRT: Residence at discounted value
• Spousal Lifetime Access Trust (SLAT): Use exemption while retaining access
• Dynasty Trust: Multi-generational wealth transfer
• Charitable Remainder Trust: Income now, charity later

Download Excel Template

Estate Planning FAQs

A will only takes effect after death and must go through probate court (public, costly, time-consuming). A revocable living trust takes effect immediately, avoids probate, provides privacy, and can include provisions for incapacity. Most financial planners recommend having both: a trust for major assets and a 'pour-over' will to catch anything not titled in the trust.