Do I Need an Estate Plan? (2026 Guide by Net Worth & Life Stage)
Estate planning is often framed as something only the rich need. It isn’t. A basic plan — a will, powers of attorney, and beneficiary designations — protects almost every adult with assets, children, or a home. Federal estate tax only hits estates above $15 million in 2026, but incapacity, probate, and state taxes affect far more families.
What an estate plan includes
A will names guardians for minor children and directs how assets pass. Financial and healthcare powers of attorney let someone act for you if you are incapacitated. A healthcare directive states your medical wishes. Beneficiary designations on retirement accounts and life insurance pass outside the will. Trusts can avoid probate and, for larger estates, reduce tax.
Who needs one
If you have a child, a home, a bank or brokerage account, or anyone who depends on you, you should have at least a will and powers of attorney. Without them, the state decides who inherits and who makes medical and financial decisions for you.
When federal estate tax is the real concern
Federal estate tax applies only above the 2026 exemption of $15 million per person ($30 million married with portability). If your taxable estate approaches that, strategies like portability, trusts, and lifetime gifting matter. Check your exposure with our Federal Estate Tax Calculator.
When state tax is the concern
If you live in one of the 13 estate-tax states or 5 inheritance-tax states, much smaller estates can owe state tax. Oregon’s exemption is just $1 million. See the thresholds in our Compare by State tool and learn how relocating can help.
Common mistakes
Relying on a will alone (it goes through probate), forgetting to update beneficiaries, titling assets inconsistently with the plan, and assuming “I’m not rich enough to need a plan.” For estates near the exemption, missing the portability election on Form 706 can waste millions of exemption.