The estate attorney who says simple estates aren’t actually simple — and why you should care

• An estate plan should include financial, medical, and legal documents, according to estate planning attorney Kerri Koen.
• Be realistic about family dynamics, and don't forget your digital assets, she says.
• This article is part of "The Great Transfer," a series that highlights the mechanics of wealth transfer and the human priorities behind them.

If you've ever thought that you're too young or too broke to worry about estate planning, Kerri Koen would like you to think again.

"It's really important that we're all proactive and have these documents in place before we need them," says Koen, partner at Modern Legacy Law Group. "You're the only person who can make these decisions on your own behalf."

Although it may be unpleasant to think about death or incapacitation, doing so can help you make decisions that align with your values and help your loved ones avoid an arduous court process after your death, Koen says.

As an estate planning attorney, Koen helps clients — mostly in their 30s, 40s, and 50s — create estate plans to bring peace of mind and security after a tragedy. Here's how you can do the same.

Know that even simple estates aren't simple

Leaving your assets in a meaningful way isn't just for the rich. In fact, "I would argue it's actually more beneficial to those who aren't multimillionaires," Koen says.

She often sees people come in saying they just have a simple estate — a home, a retirement account, and some cash, for example.

"They're saying it's very simple, but the problem is that the laws that apply aren't always simple," she says. Proper planning can help you avoid costly court processes and minimize how your estate is taxed, she adds.

Recognize that an estate plan involves more than just a will

A will is the "driving document" of an estate plan, Koen says. This legal document, which can be five pages or 100, depending on the complexity, outlines how your assets will be divided in the event of your death. It also covers important legal decisions, like who should take custody of your kids or pets.

However, it's not the only important paperwork.

Your estate plan should also include a power of attorney (a legal document that designates who can make legal and financial decisions on your behalf if you're unable to) and advanced care directives to express your medical wishes.

These documents vary by state, and work together to address issues like who can access your medical records and whether you want to be kept on life support.

Consider a trust, even if you're not rich

A trust is a legal structure in which one person transfers assets to another person or entity, for the benefit of a third party. That sounds complicated, and it can be, but many people can benefit from a trust, even if they're not wealthy, Koen says.

"If we want to avoid probate processes, or protect assets from Medicaid and creditors, that's where we see trust planning come into place," she says.

Trusts can be particularly important if you have minor children, since they allow the people raising your children to access assets without owning them. That can help when life gets messy: say, your sister takes custody of your children upon your death, so you leave her all your assets. However, if she gets sued, any assets she owns — even if they were intended for your kids — can be taken.

Trusts avoid this by giving guardians "the access, without giving them the actual assets," Koen says.

Think about disability, not just death

Effective estate planning accounts for not just death, but disability as well, Koen says. Plan for not only what would happen if you become disabled (by appointing a power of attorney), but also for if an heir becomes disabled.

In that case, leaving them assets directly could compromise their access to government-funded services. Whereas setting up a trust can give them access to funds to supplement their care without disqualifying them from services like Medicaid, Koen says.

Be specific

Clients often say things like "I'd want my spouse to take care of my sister if I died." That's a nice sentiment, but it can mean different things to different people.

"Put a number to that," Koen says. Doing this can take some reflection, she adds. First, think about what "take care of" means to you; then, work with your attorney to reach a specific amount of funds you'd like allocated for the given purpose. Your attorney can also help you make sure you have the assets within your estate to support that gift or inheritance.

Another way to be specific: name backups for key roles, like your power of attorney or guardian of your children. That way if your first choice isn't able to step up, you still have someone you trust, Koen says.

Be realistic about family dynamics

Koen once worked with a family where the two adult children were named to administer a trust together. Come to find out, the siblings weren't speaking.

"We have this wishful thinking," that family feuds will resolve, Koen says, but that isn't always the case.

Instead of hoping for the unrealistic, create a plan that you're certain will work with current family dynamics and minimize conflict—like leaving separate gifts to siblings who have a tense relationship.

Don't forget your digital assets

Too often, digital assets fall through the cracks of estate planning, Koen says. This can include financial assets, like cryptocurrency, as well as personal legacies, including social media, digital photos, and even access to your phone.

While digital inheritance isn't well-regulated, there's been a lot of progress over the past five years, Koen says.

For example, Apple, Google, and Meta all allow users to appoint a legacy contact who can access your accounts if you die. There are also less formal decisions to consider, like whether to leave your social media active if you die or become disabled. This is especially important if you generate income from these accounts.

Get it done

It's tempting to put off making decisions about estate planning, but Koen says almost all her clients are happy once it's done.

Although you should review your estate plan every three to five years (and after major life events like a birth or divorce), there's relief in having a will and other important documents in place.

"The number one thing I hear is [that clients] thought this was going to be scary," Koen says, "but they're actually leaving the office with tremendous peace of mind."