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A will is not the most important document many owners have. For a lot of us, the beneficiary form is.
That surprised me when I first read it, and it is why I want to walk through estate planning in order: the few documents that matter, the forms that quietly override them, and the part nobody tells online owners about, which is how someone gets into the business if you cannot. January is a good month for boring work. This is the boring work with the highest payoff.
Educational content, not financial, tax, legal or investment advice. Talk to a licensed professional about your situation.
Why do owners need an estate plan?
FINRA's guidance on advance planning puts it simply. Planning for the future of your assets helps ensure your wishes are carried out, your potential future needs are addressed and your loved ones are provided for. It adds that planning is not just for the wealthy.1
For an owner there is a second layer. You hold accounts, a business entity, customer relationships and logins, and all of it sits on a set of platforms that do not know who you are to your family. Without a plan, people who love you are left sorting that out during the worst week of their year.
What are the core documents?
Three do most of the work.
A will
A will specifies how you want your property and assets distributed, and it lets you appoint a guardian for minor children. It usually names an executor to carry out your instructions.1
Wills typically go through probate court, which can take time, and they become part of the public record. Without a valid will, a court distributes your assets under state and federal law.1 An attorney can confirm yours is valid in your state.
A power of attorney
A power of attorney lets someone you trust manage your affairs if you become unable to. FINRA describes durable, springing and limited versions. A durable power stays in effect if you become incapacitated, a springing one starts when a specific event happens, and a limited one restricts authority to specific activities.1
You must sign it while you are mentally competent for it to be valid, and the rules vary by state.1 It terminates on your death, so it does not replace an estate plan.1
A trust, when it fits
FINRA describes a living trust as one you can change or cancel during your lifetime, which can help heirs avoid probate. It describes an irrevocable trust as one that cannot be altered once set up, with potential tax advantages and loss of some control.1 Whether either fits is a question for an estate attorney.
Why do beneficiary forms matter more than the will?
Because they win. FINRA says retirement accounts and insurance policies pass directly to named beneficiaries, and that beneficiary designations typically override instructions in your will.1 It also notes that they remain valid through major life changes.1
Beneficiary designations typically override instructions in your will.
The same logic applies to brokerage accounts that carry a transfer-on-death plan. FINRA says a TOD plan or other beneficiary document supersedes your will, and advises asking your firm who is recorded as the beneficiary on each of your accounts.2
Use contingent beneficiaries
FINRA notes you can usually name contingent beneficiaries in case your primary choices cannot be located, decline the assets or die before you.1 For employer plans such as a 401(k), your spouse is typically required to be named as primary beneficiary unless they sign a waiver.1
What happens to retirement accounts after you?
The IRS says that under the SECURE Act, most beneficiaries of defined contribution plans and IRAs must take the entire balance within ten years, with exceptions for a surviving spouse, a child who has not reached the age of majority, a disabled or chronically ill person, and someone not more than ten years younger.4 The point for you is to match the form to the person, and to ask a tax professional what each choice means. Roth accounts follow this rule after the owner dies too.4
What does the federal exclusion mean for you?
The IRS says estates of people who die in 2026 have a basic exclusion amount of $15,000,000, up from $13,990,000 for 2025. The annual exclusion for gifts is $19,000 for 2026.3
$15,000,000
For most online owners, that means federal estate tax is not the main reason to plan. Control, speed and clarity are. State rules can differ, so ask your attorney what applies where you live.
What does your online business need that a will does not cover?
An access plan. A will can say who gets your business interest. It cannot log in to your ad accounts, your bank or your payment processor on a Tuesday morning.
- Who decidesName a successor and a backup
- Who can signBank, processor, entity documents
- Where the access livesA password manager with emergency access
- What runs on autopilotBilling, payroll, contractors, hosting
- Who to callAttorney, CPA, key vendors and clients
FINRA suggests keeping account information in a safe and logical place so an executor and heirs can quickly locate firm contact details.2 I extend that to the business: a short document with accounts, owners, renewal dates and who to call.
Use the paperwork you already have
Read your entity's operating agreement or equivalent documents, and ask your attorney what happens to your ownership interest. Check the terms of any platform where the business depends on one account, because some accounts cannot be transferred. I do not know your platform's rules, and they change.
What should you do this month?
- List everything. Accounts, policies, entities, domains, platforms and who has access.
- Check every beneficiary form. Name primary and contingent beneficiaries.
- Book an estate attorney. Ask about a will, a power of attorney, a health care directive and whether a trust makes sense.
- Write the one-page access plan. Store it where your successor can reach it.
- Put a review date on the calendar. Marriage, divorce, a child or a move all mean a fresh look.
I wrote about the insurance side in disability and term life basics, and the accounts that carry beneficiary forms are laid out in Solo 401(k) vs SEP IRA in 2025.
My grandmother's question, So what's your retirement plan?, was about me later. This is the sibling question: what happens to everything I built after me? Both belong on the same calendar.
Planning for the day you are gone is the most grown-up thing a builder does.
The rest of the series is at Investing and Retirement.
Keep building.Ekai
Questions people ask
What happens if I die without a will?
FINRA says that without a valid will, a court will distribute your assets according to state and federal laws. A will also lets you name an executor and a guardian for minor children.
Does my will control my 401(k) or IRA?
Generally no. FINRA explains that retirement accounts and insurance policies pass directly to named beneficiaries, and that beneficiary designations typically override instructions in your will.
Does a power of attorney work after I die?
No. FINRA notes that a power of attorney terminates on your death, so it does not substitute for an estate plan. It lets someone you trust manage your affairs if you become unable to.
How big is the federal estate tax exclusion?
For people who die in 2026 the basic exclusion amount is $15,000,000, up from $13,990,000 for 2025, according to the IRS. State rules can differ, so check yours.
Sources
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