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9 Critical Estate Planning Documents You Need Beyond a Will

Having these forms can prevent a lot of chaos and confusion.

By Stacy Garrels

Edited by Chris Kissell

Updated Dec. 19, 2024

When people think of arranging their final affairs and creating an estate plan, a will is often the first thing that jumps to mind.

While a will is certainly important, it’s far from the only document you need to make sure your final wishes are honored.

Here are some of the most critical documents for managing your end-of-life affairs. Making the right money moves now can safeguard your legacy and lay the foundation for future generations to build wealth.

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Living will

A living will spells out your health care wishes if you’re unable to communicate due to illness or injury. This gives you autonomy, as you share your end-of-life care preferences so they are carried out.

Not only do you have the final say in your own medical treatment, but you relieve your family of an immense emotional burden.

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Durable power of attorney

A power of attorney is a legal document that gives a trusted individual the power to manage financial and legal affairs on your behalf if you become incapacitated.

While a will takes effect after death, a durable power of attorney safeguards your financial and personal well-being while you are alive. The individual you name can manage vital day-to-day activities, such as paying bills and even taking care of pets.

Neglecting to appoint someone to this role could leave a bureaucratic and logistical mess for your family to clean up. Establishing a power of attorney gives you a say in how your affairs are managed.

Medical power of attorney

A medical power of attorney is similar to a durable power of attorney. However, with the former, the person you designate makes decisions on your behalf about medical care.

For example, if you are in a severe car accident and need significant rehabilitative therapy, the person with this power can make decisions about your specialist, therapy team, and care center.

It’s essential to appoint someone who understands your values and will act in your best interests.

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Beneficiary designations

A beneficiary designation outlines who will inherit specific assets after your death. Such assets include life insurance, annuity funds, 401(k) plans, and other investment and savings accounts.

While a will covers a broader range of assets and instructions, a beneficiary designation allows your heirs to bypass probate. Instead of estate proceedings in court, the funds pass directly to the designated beneficiary, such as your spouse or children.

Regularly updating these designations is important to ensure your assets are distributed as intended, as the designations typically override what’s written in your will.

Living trust

A living trust is another vehicle for passing assets directly to heirs without having to go through lengthy and potentially expensive probate proceedings.

With this instrument, you name a trustee to manage property and assets held in your trust. A trust can also be used to distribute assets during your lifetime.

Digital asset trust

While you may worry about what happens to your bank account and stock portfolio after your death, you should make a plan for your digital footprint too.

You can set up a digital asset trust that outlines how your digital assets — such as photos, a blog, email, social accounts, and subscriptions — are handled.

This type of trust can also simplify the transfer of any income-generating assets — such as a YouTube channel — to your heirs.

And on a more practical note, a digital trust can facilitate a public announcement of your death to friends in online communities. This is helpful, as fewer people are reading print obituaries today.

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Life insurance policy

A life insurance policy plays a crucial role in estate planning by providing immediate financial support to loved ones.

These policies bypass probate, ensuring your beneficiaries get quick access to funds. This can help with immediate, urgent expenses, such as funeral costs and mortgage payments.

Additionally, insurance policies are legally binding contracts with beneficiary designations that typically override a will. Keep these documents updated and accessible.

Declaration of guardianship

A declaration of guardianship is worth considering when a medical or durable power of attorney isn’t enough.

A guardian takes on a broader role in your care. This person can oversee your overall care and personal needs.

By filing this document, you can name a trusted person to step in if needed, or even specify if someone should be excluded.

Funeral wishes

Documenting your wishes through funeral instructions can let your family know how you want to be laid to rest. You can specify your preference for burial or cremation, specific ceremonies, and other details.

This can relieve your family of decision-making burdens during a time of grief, and they can take comfort in knowing they are honoring your legacy. Even if you don’t care what happens after you die, your loved ones do.

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Bottom line

Estate planning involves more than just writing a will. Instead, it’s about creating a roadmap that helps protect your wealth and honor your wishes. Having the right documents in place can minimize stress among your loved ones.

By adding these essential documents to your planning toolkit, you’re ensuring peace of mind for everyone involved. Start now to shelter your assets from unnecessary complications.

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