Based on this insightful thread from Brennan Schlagbaum (@Budgetdog_), a CPA and father emphasizing proactive planning to avoid government interference, high costs, and family hardship, I’ve distilled this into a step-by-step action plan.
This plan assumes you’re a parent (or planning to be) with moderate assets, but it can be adapted. The goal: Minimize taxes (e.g., 40% estate tax hit), avoid probate fees ($100k+), and ensure your loved ones grieve without financial chaos.
If you die without a plan…
— Brennan Schlagbaum, CPA (@Budgetdog_) November 18, 2025
– The government takes 40% in tax
– Probate court costs $100k+
– Your kids get the scraps
If you love your family, here's every document you need to protect them:
(from a CPA & father of two)
Key Principles from the Thread:
- Act now—planning takes a weekend, but inaction costs everything.
- Total setup cost: ~$500–$1,500 (DIY vs. attorney).
- Focus on accessibility, legal safeguards, and immediate support.
Phase 1: Gather Information (1–2 Days)Compile your financial and personal details to build the foundation. This prevents scrambling later.
| Item | What to Do | Why It Matters |
|---|---|---|
| Inventory Assets & Accounts | List all bank accounts, investments (e.g., 401k/IRAs), life insurance policies, safe deposit boxes, and digital logins (use a password manager like LastPass). Note beneficiaries. | Enables quick access; avoids “lost” assets eating into inheritance. |
| Family Details | Document spouse/partner info, kids’ guardians (primary + backup), and key contacts (attorney, CPA, financial advisor). | Ensures kids are cared for by your choice, not the state’s. |
| Business Check (If Applicable) | Outline business structure, key employees, and revenue streams. | Identifies if your business needs succession to survive without you. |
Action Items:
- Create a secure digital folder (e.g., Google Drive with 2FA) and a physical binder.
- Share read-only access with your spouse.
Phase 2: Set Up Core Legal Documents (3–5 Days)These are the backbone—without them, courts decide for you. Use online tools like LegalZoom or Rocket Lawyer for ~$500, or an attorney for $1,500.
| Document | Purpose | How to Create |
|---|---|---|
| Will | Names guardians for kids, distributes assets. | Specify guardians explicitly; include a “pour-over” clause for forgotten items. |
| Durable Power of Attorney (Financial) | Allows a trusted person (e.g., spouse) to handle money if you’re incapacitated. | Name 1 primary + 1 backup; make it “durable” (survives incapacity). |
| Healthcare Power of Attorney | Delegates medical decisions. | Align with your values (e.g., life support preferences). |
| Living Will/Healthcare Directive | Outlines end-of-life wishes. | Pair with the above for full coverage. |
Action Items:
- Draft via templates (e.g., Nolo.com).
- Notarize and store copies with your emergency binder.
- Review every 3–5 years or after life events (birth, divorce).
Phase 3: Build Financial Safeguards (2–3 Days)Protect cash flow during grief—aim for 6–12 months of runway.
| Protection | Recommendation | Implementation |
|---|---|---|
| Term Life Insurance | 10x your annual income (e.g., $1M policy if earning $100k). | Shop via Policygenius; ensure spouse/kids are beneficiaries. Cost: $20–50/month. |
| Emergency Fund | 6–12 months of expenses in a high-yield savings account (HYSA, e.g., Ally at 4%+ APY). | Automate transfers; grant spouse joint access. |
| Retirement Accounts | Update beneficiaries to spouse + contingent (kids/trust). | Log in to Vanguard/Fidelity; add “payable on death” for non-retirement accounts. |
Action Items:
- Calculate needs: Expenses × months = fund size.
- For business owners: Add key person insurance ($500k+ coverage) and a buy-sell agreement.
Phase 4: Create Emergency Protocols (1 Day)Grief impairs decisions—pre-write the playbook.
- Emergency Access List: One-page summary of all accounts/logins/policies. Digital + physical copies; spouse has the master password.
- “First 48 Hours” Sheet:
- Call attorney: [Name/Phone].
- Call CPA: [Name/Phone].
- File life insurance: [Policy #/Contact].
- Pause non-essential spending; bills auto-pay from [Account].
- Avoid selling investments for 6 months—consult advisor first.
Action Items:
- Laminate the sheet and store in your wallet/home safe.
- Practice a “dry run” with your spouse: Walk through a scenario.
Phase 5: Establish a Trust for Long-Term Protection (4–7 Days)A revocable living trust bypasses probate (saving $400k+), keeps privacy, and shields kids’ inheritance until adulthood.
| Trust Element | Role | Setup Tips |
|---|---|---|
| Revocable Living Trust | Holds assets; you control during life, transfers seamlessly on death. | Transfer titles (house, accounts) into the trust—90% fail here. |
| Pour-Over Will | Catches any missed assets. | Links back to the trust. |
| Guardian Designation | Specifies who raises kids + how funds are disbursed (e.g., for education). | Include spending rules (e.g., no lump sums until 25). |
Business Add-On (If Applicable):
- Succession plan: Who buys your share?
- LLC owned by trust: Separates personal/family assets.
Action Items:
- Use an attorney for this (essential to avoid errors).
- Fund the trust immediately: Retitle deeds/accounts.
- Annual review: Update for asset changes.
Phase 6: Review, Test, and Maintain (Ongoing)
- Annual Audit: Check beneficiaries, values, and contacts (November ritual?).
- Test Access: Have your spouse log into accounts quarterly.
- Educate Family: Share the “why” gently—frame as love, not morbidity.
- Cost Summary: $500 DIY docs + $300 insurance + $700 trust = ~$1,500 total.
This plan turns the thread’s warnings into empowerment. Start with Phase 1 today—your family’s security depends on it.
