Estate Basics: Wills & Beneficiaries

🧠 Why it matters

An estate plan decides who gets what — and who makes decisions — if you die or can't act for yourself. The basics: a WILL states who inherits your things and, crucially, who would care for your kids. BENEFICIARY designations on accounts like your 401(k), IRA, and life insurance name who receives them — and these OVERRIDE your will, so keep them updated (an ex-spouse left on an old form can still inherit). A POWER OF ATTORNEY lets someone you trust handle your finances or health decisions if you're incapacitated. Without a plan, state law decides — often slowly, and not as you'd have wanted. You don't need to be wealthy or old; you just need to be an adult with anything, or anyone, you care about.

🌍 In the real world

💡 Beneficiary forms quietly beat wills: people who forget to update an old 401(k) or insurance form have had an ex inherit everything, despite a newer will saying otherwise. A five-minute update keeps your money going where you actually want it.

📌 Takeaways

• A will sets who inherits and who'd care for your kids
• Beneficiary designations override your will — keep them updated
• A power of attorney covers decisions if you're incapacitated

✅ Test yourself