Estate Planning Essentials for Pre-Retirees: What to Know, Review, and Consider in 2026

If you’re between the ages of 50 and 65, your financial picture is likely coming into sharper focus — and so is the importance of having a clear, current estate plan in place. The federal estate planning landscape is more stable heading into 2026 than it has been in years, creating a valuable window to review, refresh, and align your plan with your current goals.

Estate planning isn’t a one-time event. It’s an ongoing process that should evolve as your life, your family, and the laws around you change. For pre-retirees in particular, this decade is often when complexity peaks: assets have grown, families have grown, and the decisions you make now lay the groundwork for how everything eventually transfers. 

1. Your Core Estate Planning Documents

A solid estate plan typically rests on several foundational documents. If you haven’t reviewed yours recently — or if they were written before major life changes — now is a practical time to take stock.

Last Will & Testament. Outlines how you’d like your assets distributed and names an executor to carry out your wishes. Without a current, valid will, your state’s laws determine distribution — which may not reflect your intentions. 

Revocable Living Trust. A trust can help your estate avoid probate, maintain privacy, and provide a smoother transition for your beneficiaries. Critically, a trust only functions as intended when it is properly funded — meaning your assets are actually titled in the trust’s name.

Financial Power of Attorney. Designates someone you trust to manage your financial affairs if you become unable to do so. Many financial institutions may not honor documents that are significantly outdated, so periodic review is worthwhile.

Healthcare Directive & Medical Power of Attorney. Communicates your medical wishes and names a healthcare agent to make decisions on your behalf. This is one of the most frequently overlooked areas of estate planning.

HIPAA Authorization. Designates which family members or individuals may access your medical records — an often-overlooked but essential companion to your healthcare directive.

A Common and Costly Oversight: A trust that is never fully funded is one of the most frequent estate planning mistakes. If accounts aren’t retitled and property isn’t transferred into the trust, families may still face probate delays and court involvement — the very problems a trust was designed to prevent.

2. Beneficiary Designations: The Override Clause

Here is something many people don’t realize: beneficiary designations override your will. It doesn’t matter what your estate documents say — whoever is listed on your retirement accounts, life insurance policies, and transfer-on-death accounts will receive those assets directly.

This makes a periodic beneficiary audit one of the most straightforward — yet consequential — steps in estate planning. Life changes quickly. Marriages, divorces, deaths, and the birth of children or grandchildren can all render old designations outdated or counterproductive. Federal law generally requires a spouse to be the primary beneficiary of a 401(k) unless they have signed a written waiver. 

Reviewing and updating these designations regularly helps ensure your assets flow where you intend them to go, regardless of what your other documents say.

3. What Changed — and What It Means for Planning

The federal exemption is now permanent. The federal estate and gift tax exemption stands at $15 million per individual (or $30 million for a married couple) in 2026, permanently increased and indexed for inflation going forward. For many families, the federal estate tax is less of an immediate concern than it once was — but there are still important nuances to keep in mind. 

State estate taxes remain a significant factor. Every state approaches estate and inheritance taxes differently. Some states have considerably lower exemptions than the federal threshold, and certain states have specific rules that can significantly affect planning outcomes for estates exceeding certain limits.

The SECURE Act continues to reshape retirement account planning. Most non-spousal beneficiaries are now required to withdraw inherited retirement account assets within ten years, which can compress and accelerate the tax burden on those who inherit IRAs or 401(k)s. This has made beneficiary planning and coordination with broader tax strategies more important than ever.

Income tax and estate tax planning are increasingly intertwined. Families are now using trusts not just for estate transfer purposes, but to manage ongoing income tax exposure, coordinate charitable goals, and plan for business transitions. 

A Note on State Law: Even if your estate falls well below the federal exemption, your state of residence may have its own estate or inheritance tax with considerably lower thresholds. If you’ve moved to a new state recently, your existing estate plan may need to be reviewed for suitability under your new state’s laws.

4. Modern Considerations: Digital Assets, Blended Families & More

Estate planning has grown more complex alongside modern life. Many plans written even five to ten years ago don’t account for circumstances that are now commonplace.

Digital Assets. Online accounts, cryptocurrency holdings, and social media profiles all represent a form of property that traditional estate documents often don’t address. Documenting how these assets should be accessed and managed is an important addition to any modern plan.

Blended & Non-Traditional Family Structures. Blended families, cohabitating partners, and multi-generational households often require more carefully drafted provisions to reflect the full scope of your intentions and minimize the risk of disputes or unintended outcomes.

Long-Term Care Planning. Planning for potential incapacity and long-term care needs is an increasingly important component of a holistic estate plan for those in the pre-retirement years.

Adult Children with Special Circumstances. If an adult child faces potential challenges related to creditors, divorce, or other personal circumstances, how they receive assets — outright versus in trust — is worth examining with a qualified professional.

5. Where to Begin — or Begin Again

Estate planning can feel like one of those tasks that’s always important but rarely urgent — until it suddenly is. The goal isn’t a perfect plan on the first pass; it’s a clear, current plan that reflects your life as it actually is today.

A few practical starting points:

∙Gather your existing estate documents and note when they were last updated.

∙Review your named executors, trustees, healthcare agents, and powers of attorney to confirm they are still appropriate and willing to serve.

∙Conduct a beneficiary audit across all retirement accounts, life insurance policies, and transfer-on-death accounts.

∙Verify that any existing trusts are properly funded — that assets are titled in the trust’s name as intended.

∙ Share the location of your documents and the general outline of your plan with the people who may need to act on them. Clarity can reduce uncertainty for your family during difficult moments.

∙ Engage a qualified estate planning attorney — ideally one familiar with your state’s laws — to review, update, or create your core documents.

Estate planning is one piece of a comprehensive retirement income strategy. If you’d like to explore how the pieces of your plan fit together, we invite you to connect with our team for a no-obligation conversation.

[Schedule Your Complimentary Review]

Important Disclosures: This article is provided for informational and educational purposes only and does not constitute legal, tax, or investment advice. Estate planning involves complex legal and tax considerations that vary by individual circumstance and jurisdiction. Readers are encouraged to consult with a qualified estate planning attorney, tax professional, and/or financial advisor before making any decisions based on the information presented.

Investment advisory services offered through Redhawk Wealth Advisors, Inc., an SEC

Registered Investment Advisor. SEC Registration does not imply any level of skill or

understanding. Redhawk Wealth Advisors and Patten Financial Group are unaffiliated and

separate legal entities.