Here is a number that surprises people: about two-thirds of American adults have no will. August is National Make-A-Will Month, a yearly reminder created for exactly this problem — and if your own paperwork is missing or ten years stale, consider this your friendly nudge.

You may have heard that estate taxes barely touch anyone anymore. That is true, and the new numbers are below. But taxes are also the biggest misunderstanding about why you need a will in the first place. The tax bill was never the main event. Our team sees the fallout when planning waits too long, and it is rarely the paperwork that hurts most — it is the family friction.

One note before we start: this article is educational, not legal advice. An estate planning attorney is the right person to put these ideas to work for your family and your state.

The 2026 estate tax picture, in one paragraph

Under the 2025 tax law, the federal estate and gift tax exemption is $15 million per person for 2026 — up from $13.99 million — and the increase is permanent and indexed for inflation. Through a feature called portability, married couples can effectively shield up to $30 million. Separately, the annual gift exclusion for 2026 stands at $19,000 for each recipient. Bottom line: the vast majority of American families will never owe federal estate tax.

So the tax problem is mostly solved. The inheritance problem is not.

Why you need a will anyway

A will does two jobs no tax law handles. It says who receives what, and it names who is in charge — your executor. Pass away without one and your state's default formula makes both calls, and that formula does not know your family. It cannot know that one child has been your caregiver, that a stepchild should inherit, or that a certain keepsake belongs with a certain grandchild.

A will also settles the practical questions that can stall families for months: who handles the paperwork, who has authority with banks and accounts, and who makes the final call when siblings disagree. Naming your executor on purpose beats leaving the choice to a courtroom.

The forms that quietly outrank your will

Here is the detail our team flags most often: beneficiary designations on IRAs, 401(k)s, life insurance, and annuities override whatever your will says. If an old form still names an ex-spouse or someone who has passed away, that form wins. Outdated beneficiary paperwork ranks among the most common and painful estate mistakes — and checking it costs nothing. A good habit: review every beneficiary form any time you review your will, so the two never drift apart.

The documents that protect you while you're living

A complete plan is mostly about life, not death. A durable financial power of attorney names someone to pay your bills and manage accounts if you cannot. A health care directive spells out your treatment wishes, and a medical power of attorney names the person who speaks for you on medical decisions. Skip these, and your family may need a court's permission to do what a two-page document would have allowed. If you signed yours years ago, confirm the people named are still the right people — and still willing to serve.

When a trust earns its keep

For many families, a will covers the essentials. A revocable living trust becomes worth a conversation when your situation has extra moving parts:

Two more review triggers. Documents written years ago around old estate tax limits may contain formulas that no longer make sense — an attorney can simplify them. And check your state: some states charge their own estate or inheritance taxes with thresholds far below the federal figure, sometimes around one million dollars. A good review rhythm is every three to five years, or right after any major life event — a marriage, a divorce, a death in the family, a move to another state, a new grandchild, a significant inheritance, or a serious diagnosis.

What this means for you

Use the month the way it was designed. Pull out your documents — or admit there are none — and book time with an estate planning attorney. List your accounts, verify every beneficiary form, and make sure someone you trust holds power of attorney. None of this is complicated once it is started, and every piece of it is a kindness to the people you love. Most people finish faster than they expect, and the relief afterward is real.