Do I Need an Estate Plan?

Many people assume that estate planning is only for the “wealthy” or those with complicated family situations. In reality, nearly everyone can benefit from an estate plan.

Regardless of your net worth or family structure, an estate strategy helps ensure that decisions about your children, assets, and health care are made according to your wishes—not by state law or the courts. Without proactive planning, critical decisions may be left to a judge who doesn’t know you or your priorities.

Nicolai Law Firm works with you to clarify your goals and coordinate with legal, tax, and financial professionals to create an estate strategy tailored to your life and future.

Key Components of an Estate Strategy

For some individuals, estate planning may be as simple as a will. For others, it involves multiple documents working together to address financial management, health care decisions, and asset distribution during life and after death. What’s right for you depends on your circumstances and what matters most to you.

Common estate planning tools include:

• Will – Directs how your property is distributed and who will care for minor children after your death.
• Living Trust – A revocable living trust allows assets to be managed by a trustee if you become incapacitated and can help avoid probate at death.
• Power of Attorney – Authorizes someone you trust to make financial or legal decisions on your behalf if you are unable to do so.
• Health Care Directive – Specifies your wishes regarding medical treatment, life-prolonging care, and other health decisions.
• Beneficiary Designations – Certain accounts and insurance policies pass directly to named beneficiaries, often overriding a will and bypassing probate.

2026 Annual Gift Tax Exclusion: What to Know

• Per Recipient – You may gift up to $19,000 per person in 2026 without filing a gift tax return.
• Married Couples – Spouses may gift $38,000 per recipient using “gift splitting,” generally requiring IRS Form 709.
• Lifetime Exemption – Gifts exceeding the annual exclusion reduce your lifetime gift and estate tax exemption, which is $15 million per individual in 2026 ($30 million for married couples). While most people never owe gift tax, gifts over the annual limit must still be reported on Form 709.

How We Can Help

Estate planning involves important legal and tax considerations. Nicolai Law Firm can guide you through the process, help you make informed decisions, and ensure your plan reflects your goals.

To get started, contact Nicolai Law Firm at 310.714.7034 or info@nicolailawfirm.com.