He was the 36-year-old widower with two girls, who he wanted to go to college. It is 12 years later now and things are going pretty well. He is 48 and remarried; his wife, Mary, is 45, and has two children from her first marriage, both in high school. His annual income is higher than ever, his employer began a 401(k) plan, and his wife has a decent job, also with a 401(k) plan. They've been putting away money diligently, although he got late start, and the recession took a chunk out of it. The current value of their combined savings and 401(k) plans is about $180,000. Mary's divorce left her in tight financial straits, but not desperate. During the divorce, they sold their house and barely broke even. 

Her ex-husband was chronically late in his child support payments if they arrived at all. When she came into the marriage, her main assets were her retirement fund and some small emergency savings. On the other hand, in part because of the life insurance settlement on Howard's late wife, the house is almost paid for. His oldest daughter and Mary's oldest son are about to graduate from high school. The other two children are close behind. College is looming. Although they're still relatively young, with many good years ahead of them, they can feel their bodies slowing down, with a few more aches and a bit more stiffness every year. As Mary says, "We're not getting any younger. We talk more now about retirement, but with four kids headed to college, it's still a dream." 

Here are the financials: 

• Combined monthly income: $8,700 

• Living expenses: $5,600 

• Total assets: $437,500 

•Liabilities: $29,100 

• What happens if either of them dies today. • What happens with the kids?  • What happens with the assets? The debts? 

• What happens if one becomes seriously ill and incapacitated? Who will be able to make decisions? Who can pay bills, sell assets? 

• What are the 4 primary estate planning documents most people should have?