top of page

What Is Estate Planning?

What is estate planning? It is a strategic and forward-thinking process designed to manage an individual's assets during their lifetime and ensure their seamless transfer to chosen beneficiaries upon death. It encompasses a comprehensive set of legal and financial strategies aimed at preserving and distributing wealth in alignment with the individual's wishes. Estate planning is not exclusive to the wealthy; it is a crucial endeavor for anyone with assets, regardless of size, who seeks to protect their legacy and provide for their loved ones.

At its core, estate planning involves making decisions about the distribution of assets, the management of financial affairs, and the care of dependents in the event of incapacity or death. The process extends beyond the creation of wills and trusts to encompass various tools and strategies tailored to individual needs, such as powers of attorney, healthcare directives, and tax planning.

Estate planning also involves addressing potential challenges and uncertainties, including minimizing tax liabilities, avoiding probate, and providing for family members with diverse needs. It is a dynamic process that can evolve with changes in personal circumstances, financial situations, and applicable laws.

The significance of estate planning goes beyond finances; it is about peace of mind, ensuring that one's wishes are respected, and loved ones are protected. Requiring careful consideration and meticulous documentation, estate planning offers individuals the opportunity to craft a legacy that extends far beyond their lifetime. With the guidance of seasoned professionals, such as those at Woodbury & Ybarra, estate planning becomes a comprehensive and customized strategy, empowering individuals to navigate the complexities of wealth management and legacy preservation with clarity and confidence.

do I need an estate plan

Who needs an estate plan?

Estate planning is a crucial endeavor for individuals of all walks of life, irrespective of their financial status. It goes beyond amassing substantial wealth and is important for anyone with assets of any size. The misconception that estate planning is solely for the affluent often leads to missed opportunities for protection, control, and the seamless transfer of assets.

Individuals who own property, have savings, or possess any form of assets can benefit significantly from estate planning. Without a comprehensive plan in place, the distribution of assets can become subject to the laws of intestacy, potentially resulting in unintended consequences and family disputes.

Parents, especially those with minor children, find estate planning imperative for securing their children's future. A well-crafted estate plan designates guardianship, ensuring the care and well-being of dependents if the unforeseen occurs.

Moreover, individuals with specific healthcare preferences or concerns about medical decisions during incapacity can use estate planning to establish advanced healthcare directives. These documents outline their wishes regarding medical treatments, organ donations, and end-of-life care.

Business owners, regardless of the scale of their enterprise, benefit from estate planning to ensure the smooth transition of business assets, maintain continuity, and minimize disruptions in the event of death or incapacitation.

Estate planning is not confined to the elderly; it is a proactive process that can evolve with life changes. Young professionals, newlyweds, and individuals in various stages of life can benefit from early planning to address their unique circumstances and provide a roadmap for the efficient transfer of assets.

Estate planning is not a luxury reserved for the wealthy elite; it is a practical and responsible strategy for anyone seeking to protect their assets, provide for their loved ones, and dictate the course of their legacy. Engaging in estate planning, with the guidance of experienced professionals, ensures that individuals can navigate the complexities of this process and secure their financial future with foresight and clarity.

estate planning documents

Estate plan documents

An estate plan includes a comprehensive set of legal documents designed to articulate an individual's wishes regarding the management and distribution of their assets in the event of death or incapacity. While the specifics may vary based on individual circumstances, certain fundamental estate plan documents are commonly included to ensure a thorough and effective plan.


A will is a foundational document that outlines how a person's assets should be distributed after their death. It allows individuals to appoint an executor, specify beneficiaries, and address other important matters like guardianship for minor children.


Trusts come in various forms, each serving unique purposes. Living trusts facilitate the immediate management and distribution of assets, avoiding probate. Irrevocable trusts provide asset protection and potential tax benefits. Special-purpose trusts, such as charitable or dynasty trusts, address specific goals.

Advance Healthcare Directives:

These documents outline an individual's medical preferences and appoint someone to make healthcare decisions on their behalf if they become incapacitated.

Power of Attorney:

A power of attorney designates someone to manage affairs on behalf of the individual if they are unable to do so themselves. This may include handling transactions, paying bills, and managing investments.

Beneficiary Designations:

Ensuring that beneficiary designations on accounts, life insurance policies, and retirement plans are up-to-date is crucial. These designations can supersede instructions in a will or trust.

Letter of Intent:

While not a legally binding document, a letter of intent can provide additional guidance to the executor or trustee. It can include details about specific bequests, funeral arrangements, or any other personal wishes.

Creating a comprehensive plan involves a thoughtful consideration of these estate plan documents, ensuring they collectively address an individual's unique circumstances and objectives. Professional guidance from experts like Woodbury & Ybarra can help individuals navigate the intricacies of estate planning and craft a set of documents that align with their specific needs and goals.

estate planning and taxes

Estate Planning and Taxes

Estate planning plays a pivotal role in mitigating the impact of taxes on one's assets, ensuring a more efficient and strategic distribution of wealth. Recognizing the intricate relationship between estate planning and taxes is important for individuals seeking to preserve their assets for future generations.

One primary consideration is the federal estate tax, which applies to the transfer of assets upon an individual's death. Proper estate planning can implement strategies to minimize or eliminate estate tax liabilities, allowing more of the estate to pass to intended beneficiaries. Utilizing tools such as trusts, which may remove certain assets from the taxable estate, can be instrumental in achieving this objective.

Additionally, the concept of the stepped-up basis is crucial in estate planning. When an individual inherits assets, the cost basis of these assets is adjusted to their fair market value at the time of the benefactor's death. This adjustment minimizes the potential capital gains taxes when the beneficiary decides to sell the inherited assets.

Estate planning also can delve into gift tax considerations, as individuals may make tax-free gifts up to a certain limit during their lifetime. Strategic gifting, whether through annual exclusions or more complex techniques can effectively reduce the overall taxable estate.

In essence, a well-crafted estate plan considers the nuances of various taxes, employing strategies that align with an individual's financial situation and long-term objectives. Seeking professional guidance, ensures a comprehensive understanding of the tax implications associated with estate planning, fostering strategic decisions that maximize wealth preservation and benefit future generations.

cost of estate plan

Estate plan cost

The cost to create an estate plan varies based on several factors, including the complexity of an individual's financial situation, the types of estate plan documents needed, and the geographic location of legal services. While it is challenging to provide an exact figure, understanding the components that contribute to the overall estate plan cost can offer insights into the investment required for this important financial planning process.

Estate planning involves drafting key documents such as a will, trust, power of attorney, healthcare directive, and beneficiary designations. For individuals with straightforward financial situations, the estate plan cost may be on the lower end of the spectrum. Depending on which estate plan documents an individual chooses to create, legal fees for estate planning could range from a few hundred to a few thousand dollars, depending on the attorney's hourly rates or flat fees.

For those with more complex estates, additional documents such tax planning strategies or business succession plans may be necessary. The inclusion of these elements often increases the overall estate plan cost.

Moreover, the geographic location can influence costs, with legal services generally being more expensive in urban areas or regions with a higher cost of living.

While some individuals may explore online tools or templates as a cost-effective alternative, these solutions often lack the customization and legal expertise necessary to address specific situations comprehensively. Investing in professional legal services, such as those offered by Woodbury & Ybarra, ensures that the estate plan is not only legally sound but also tailored to individual needs, providing peace of mind and safeguarding assets effectively.

Ultimately, the cost of creating an estate plan is an investment in the protection of one's financial legacy and the seamless transfer of assets to future generations. The personalized nature of estate planning allows individuals to choose services that align with their unique circumstances, ensuring a comprehensive and effective strategy for wealth management.

Help with estate plan

See how Woodbury & Ybarra can help you with your estate planning

Secure your legacy by partnering with Woodbury & Ybarra for comprehensive estate planning services. Our seasoned team of legal professionals is committed to guiding you through the intricacies of creating a robust and effective estate plan formed to fit your unique needs. Discover the peace of mind that comes with knowing your assets are protected, your wishes are clearly outlined, and your loved ones are provided for.

Take the first step toward securing your financial legacy. Schedule a consultation with Woodbury & Ybarra to explore how our experienced professionals can help you navigate the complexities of estate planning with confidence and clarity. Your peace of mind and the well-being of your loved ones are our priorities. Contact us today and embark on the path to a well-structured and secure financial future.


bottom of page