5 essential documents your estate plan needs now

A comprehensive estate plan is crucial for all adults, not just the wealthy, to ensure their assets are handled according to their wishes after death or incapacitation. A recent guide highlights five critical documents that form the foundation of a solid plan, yet a September 2025 Pew Research Center survey found that only 32% of adults have a will, leaving the majority unprepared.

“Without these documents, nobody can legally act on your behalf if you are unable to, whether temporarily or permanently, without a court proceeding, and that can be a lengthy process and very costly,” Robert D. Steele, an estate planning and administration lawyer in New York, said.

Preparing these documents with an estate expert can cost up to $5,000, depending on location and complexity. Less expensive online alternatives exist, such as Trust & Will, which offers a basic package for $199 for an individual. However, these services are generally recommended for estates under $5 million, as more complex situations involving potential estate taxes are better served by a dedicated attorney.

Without a will, state intestacy laws take over, dictating how assets are distributed. This process can lead to outcomes that are contrary to the deceased's wishes and can create significant disruption for families. These state laws, not the individual, would determine who is in charge of the estate and how assets are divided among heirs.

The 5 Essential Documents

1. Last Will and Testament A will is a foundational document that outlines who will receive your assets. It also names an executor to manage the estate and a guardian for minor children. It’s important to note that a will only governs probate assets, which are assets owned solely by the deceased. Assets like jointly held bank accounts or life insurance policies with named beneficiaries pass directly to those individuals outside of the will.

2. Durable Power of Attorney This document appoints a trusted individual to make financial decisions on your behalf. The "durable" provision ensures the document remains effective even if you become incapacitated, preventing the need for a court proceeding for your family to manage your finances or pay your bills.

3. Healthcare Power of Attorney Also known as a healthcare proxy, this document allows you to designate someone to make medical decisions for you if you cannot communicate them yourself. This includes critical end-of-life decisions, such as the withdrawal of life support. It is recommended to name a primary and an alternate proxy.

4. Living Will An advance directive, or living will, specifies your wishes regarding life-sustaining medical treatments. This can include your preferences on procedures like cardiopulmonary resuscitation (CPR) or tube feeding, providing clear guidance to your healthcare proxy and medical professionals when you are unable to make decisions.

5. HIPAA Authorization The Health Insurance Portability and Accountability Act (HIPAA) of 2003 established strict privacy rules around medical information. A HIPAA authorization form grants specific individuals, such as your healthcare proxy and family members, permission to speak with your healthcare providers and access your medical information.

For those with minor children, Steele also recommends a standby guardianship form where state law allows. This document names a guardian for your children in the event you are alive but incapacitated.

This article is for informational purposes only and does not constitute investment advice.