The five estate-planning documents every adult should have

The list, before the explanation

Most adults benefit from five core documents:

1. A will.
2. A durable financial power of attorney.
3. A healthcare power of attorney.
4. A living will or advance directive.
5. A HIPAA authorization.

The order is roughly in order of when each one matters. Some people, depending on their assets and family situation, also benefit from a revocable living trust — but a trust is on top of the basic five, not a replacement for them.

The rest of this article walks through each document, what it does, what it does not do, and why even adults who think they have nothing to plan for benefit from putting them in place.

Why people don’t have these documents

The honest answer is usually some combination of (a) it feels like something to do later, (b) it feels like an admission that something bad will happen, and (c) it sounds expensive and complicated. None of those reasons survive a careful look.

The “later” answer fails because there is no later — there is just one day when these documents would have helped, and we don’t know which day that is. The “admission” answer fails because the documents are about other people: the spouse who would otherwise be in court arguing about a hospital decision, the children who would otherwise be deciding which one of them is in charge, the friend or sibling who would otherwise be left with a probate matter and no instructions. And the “expensive and complicated” answer fails because, for most adults, a complete document package costs less than a single major appliance and is signed in one office visit.

Document 1: a will

A will is the document that says, when you die, who gets what — and, if you have minor children, who you nominate as their guardian. It also names an executor, the person responsible for handling your estate.

The most underrated reason to have a will, for parents of minor children, is the guardianship nomination. If you die without a will and your children are minors, the question of who raises them is decided by the probate court. Family members may have to compete or coordinate; relationships you would not have chosen may end up making decisions. A will resolves this in advance — your nominated guardian is not legally binding on the court, but it is given great weight, and in most cases it is followed.

The most common reason adults put off making a will is that they think they need to have everything figured out first — every account, every asset, every relative. You don’t. A simple will can address the categories without listing every account, and it can be updated when life changes.

Without a will, you die “intestate,” and your estate passes under your state’s default intestacy statute. The default rules typically follow blood relationships: spouse and children first, then parents, then siblings. They do not include unmarried partners. They do not include close friends. They do not include the charity you intended to remember. Whatever the default rules are in your state, they were not written with your life in mind.

Document 2: a durable financial power of attorney

A financial power of attorney is the document that lets a person you choose — your “agent” or “attorney-in-fact” — handle financial matters for you if you are unable to. The “durable” part means it remains valid even if you become incapacitated; that is the whole point.

A financial power of attorney is the document people call us about most often, usually after they wish they had it. A spouse has been hospitalized and the bank will not let the other spouse access certain accounts. A parent has had a stroke and the family needs to pay their bills, sell their car, or apply for benefits, and there is no one with legal authority to act. The alternative to a durable power of attorney, in these moments, is a court-appointed guardianship — which is slower, more expensive, more public, and more contentious than the document would have been.

The agent should be someone you trust completely and who is geographically reachable when needed. Many people name a spouse as primary agent and an adult child as backup. A power of attorney can be limited or broad, immediately effective or “springing” (effective only upon a finding of incapacity); the choice depends on circumstances and family dynamics.

Document 3: a healthcare power of attorney

Also called a healthcare proxy, this document lets a person you choose make medical decisions for you when you cannot make them for yourself. It is the document hospital staff will ask for if you arrive unconscious or if a procedure requires consent and you cannot give it.

The agent named in a healthcare power of attorney should be someone who knows your values, can be reached quickly, and can make difficult decisions under pressure. The right person is not always the closest relative — it is the person best suited to honor what you would have wanted.

The healthcare power of attorney often pairs with the next document — the living will — because together they cover both the everyday medical questions and the end-of-life questions that come up when those questions arise.

Document 4: a living will or advance directive

A living will (sometimes called an advance directive, depending on the state) is a written record of your wishes about end-of-life care. The most well-known questions: do you want artificial nutrition and hydration if you are in a persistent vegetative state? Do you want CPR if your heart stops in a terminal-illness situation? Do you want comfort care prioritized over life-prolonging measures in defined circumstances?

A good living will is not a list of detailed medical procedures; it is a statement of values that gives the healthcare agent (and the medical team) a framework for the decisions that come up. State-specific forms vary. Many states have a single combined form that includes both the healthcare-agent designation and the advance-directive language; others use separate documents.

The living will is the document people are most reluctant to think about. It is also the document that, when the moment comes, most reliably reduces family suffering. The presence of a clear written statement transforms a terrible decision-making conversation among grieving family members into a process of honoring what the person already said.

Document 5: a HIPAA authorization

A separate document — sometimes folded into the healthcare power of attorney, sometimes standalone — that authorizes the release of your medical information to specified people. Without it, hospitals and providers may refuse to disclose information to anyone other than the patient, even spouses and adult children, citing HIPAA. (HIPAA does not actually prohibit disclosure to next of kin, but many providers default to a strict reading.)

The authorization is short, takes minutes to sign, and prevents a lot of frustration. It pairs naturally with the healthcare power of attorney; if you have the power of attorney, you should have the HIPAA authorization too.

What about a trust?

Many estate-planning conversations turn to “should I have a trust?” The honest answer is: sometimes yes, sometimes no.

A revocable living trust is a separate legal entity that holds your property during your life (you manage it, usually as trustee yourself) and distributes it after your death without probate. Trusts are most useful when you own real estate in multiple states (probate would otherwise have to be opened in each), when probate avoidance matters to you (probate is a public proceeding), or when you want a more controlled distribution to beneficiaries (a trust can hold assets for minor or special-needs beneficiaries with rules attached).

Trusts are not magic. They cost more to draft than a basic will package. They have to be funded — assets have to be re-titled into the trust, which is a step many people forget — to do what they are supposed to do. They are not a tax-avoidance device for ordinary estates. And they do not replace the other four documents on this list; the will, the powers of attorney, the living will, and the HIPAA authorization are still all needed alongside the trust.

A good estate-planning conversation walks through whether a trust adds value for your situation, not whether trusts are good in general.

Things to do alongside the documents

Documents alone are not enough. A complete plan also addresses:

• Beneficiary designations — life insurance, retirement accounts, and certain other assets pass by beneficiary designation outside the will. Make sure the designations match the plan; out-of-date beneficiary forms are a leading source of problems.
• Joint ownership — joint accounts pass to the surviving owner regardless of the will. Be intentional about which accounts are joint and which are not.
• Digital assets — list the accounts that matter, store login information securely (a password manager with a designated emergency contact is the most reliable approach), and address digital assets explicitly in the will or trust.
• Guardianship for minor children — the will nominates, but talk to the people you are nominating before signing, so they are not surprised.
• A short letter of instruction — not legally binding, but useful — saying where the documents are, who the key advisors are (lawyer, accountant, financial advisor), and what the family should know.

Putting it in place

For most adults, the five basic documents — plus any beneficiary updates and conversations needed alongside — can be drafted and signed in two or three meetings over a few weeks. A complete package typically takes one initial conversation, one document review, and one signing appointment.

The single most important thing is to start. The documents people regret are the ones they meant to draft and never got to.

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