If you’re 65 or older and haven’t created an estate plan yet, you’re not alone—but now is the time to take action.

Estate planning can sound intimidating, but at its core, it’s simple: getting what you have to who you want, under your terms and conditions. That means ensuring your spouse, children, grandchildren, or other loved ones receive what you intend—without unnecessary taxes, delays, or conflicts.

In this post, we’ll break down estate planning in plain language, share real-life client examples, and explain how you can use tools like life insurance and trusts to protect your family and your legacy.

Why Estate Planning Is About Love, Not Just Paperwork

We often tell our clients: you don’t do estate planning because you’re dying—you do it because you love your family. When you don’t plan, your loved ones may face avoidable stress, conflict, taxes, and legal messes during one of the hardest times in their lives.

Whether you have $200,000 or $2 million, estate planning is about making intentional decisions now so your assets go to the right people later.

Who Gets What — And How?

Most people want their assets to go to their spouse first and then to their children. But what happens if your children are minors? What if one has a history of poor financial decisions or is in a rocky marriage? What if one of your heirs passes away before you?

A solid estate plan lets you:

• Specify who receives what
• Set conditions for distributions (e.g., age or purpose)
• Avoid leaving large sums to young or financially irresponsible heirs
• Address blended families, special needs, or charitable goals
• Minimize family disputes after you’re gone

Real-Life Example: A Clean, Thoughtful Estate

We recently helped two adult children whose father had passed away. Though we hadn’t worked with him while he was alive, he had done proper planning—naming beneficiaries on annuities and IRAs, setting up property transfers, and communicating his intentions clearly.

As a result, his assets passed smoothly, outside of probate, with minimal confusion or conflict. Because of proper planning, the children avoided legal headaches and maintained peace among siblings—something their father clearly wanted.

Real-Life Example: A Spouse Protected by Planning

In another case, a retired physician with a disability had the foresight to purchase both a strong disability policy and sizable life insurance coverage. When he passed away, his wife’s income dropped significantly—but the life insurance provided a tax-free benefit that gave her financial breathing room.

This kind of preparation allowed her to cover funeral costs, pay off debts, and continue living comfortably—all because her husband made decisions ahead of time.

What About Taxes?

Here’s where it can get tricky. Even if you’ve named beneficiaries, inherited IRAs and annuities can carry big tax burdens—especially for children inheriting large accounts during their highest earning years.

We worked with a woman who inherited $1.7 million in her father’s retirement and annuity accounts. With no Roth accounts and a high income of her own, she was facing major tax consequences. Fortunately, we were able to guide her through a smarter distribution strategy to reduce the impact over time.

Tools That Can Help You Plan Wisely

There are several tools we use to help clients plan effectively:

 Wills and Beneficiary Designations

Ensure your wishes are clear and legally enforceable. These documents should be reviewed regularly.

 Trusts (including ILITs)

Irrevocable Life Insurance Trusts (ILITs) are powerful for keeping large life insurance death benefits out of your taxable estate.

 Survivorship Life Insurance

A cost-effective way to provide your heirs with tax-free cash after both spouses pass. This is especially helpful if your estate includes real estate or tax-deferred retirement accounts.

 Gifting Strategies

Annual tax-free gifts to children or trusts can reduce your taxable estate and help fund insurance premiums in a tax-smart way.

Estate Planning Is Personal — And It’s Never One-Size-Fits-All

No two families are alike. Whether you’re married, divorced, have children from a previous marriage, or want to leave money to a charity, your estate plan should reflect your unique values and relationships.

And don’t wait until something happens to start planning. The best time to act is now, while you still have the control and clarity to shape the outcome.

Ready to Get Started?

At Cardinal Advisors, we help people just like you—age 65+ and thinking about what’s next—create practical, tax-smart estate plans that reflect your values.

Schedule a free consultation today at www.cardinalguide.com