Estate Planning Documents: Wills, Trusts and POAs

Last Will and Testament

The Last Will and Testament is the starting document for most estate plans. It states your wishes for how your assets should be distributed after your death. Your will names an executor (also called a personal representative) who is responsible for administering the estate, filing the will with the probate court, collecting assets, paying debts and taxes, and distributing what remains to your beneficiaries.

Parents can use a will to nominate a guardian for minor children. A court decides the appointment under state law, taking the nomination into account.

A will directs probate property, which can include solely owned assets and a share held as a tenant in common. A valid beneficiary designation or survivorship right generally transfers property outside the will. Compare probate assets and non-probate transfers before assuming that every jointly owned asset avoids probate.

Signing and witness requirements depend on the state and type of will. Some states allow holographic (handwritten) wills under separate rules. Check the applicable state instructions before treating a signed document as valid.

Revocable Living Trust

A revocable living trust is an arrangement for managing property for beneficiaries. The person creating it often serves as the first trustee. The trust's terms and state law govern changes or revocation. Read how to fund a trust to see how ownership records connect property to the document.

After death, the trustee administers property held in the trust under its terms and state law. Those assets generally pass without probate. Trust administration still involves work, and disputes can lead to court proceedings. Review trustee and executor duties to understand who handles each set of assets.

A trust can provide for a successor trustee to manage trust assets during incapacity. The successor follows the document's conditions for taking over. Property outside the trust may need separate authority, such as a financial power of attorney.

A pour-over will can direct remaining probate property into a trust after death. That property may still need probate before the transfer. The trust document and the will serve separate roles.

Durable Power of Attorney for Finances

A durable power of attorney (DPOA) for finances names an agent to handle the financial matters it authorizes. “Durable” means the authority can continue if you become incapacitated. The document and state law determine when the agent may start acting.

Your agent under a DPOA can pay your bills, manage your bank accounts, make investment decisions, file your tax returns, manage your real estate, and handle other financial transactions on your behalf. The scope of authority depends on how the document is drafted. A broad, general DPOA grants extensive authority, while a limited DPOA can be tailored to specific transactions.

Without a financial agent or other valid authority, your family may need a court-appointed guardian or conservator to manage your finances during incapacity. The CFPB explains financial powers of attorney and the responsibilities that come with choosing an agent.

Financial authority and medical decision-making authority serve different purposes. Compare the types, limits, and agent responsibilities in our power of attorney guide.

Healthcare Power of Attorney

A healthcare power of attorney names someone to make medical decisions when you cannot. It is a type of advance directive. A living will records treatment instructions; a healthcare proxy names an agent. Our advance directive guide compares these documents and medical orders.

An agent needs to understand your values and be willing to speak with your healthcare team. Discuss treatment wishes and the responsibilities of the role before naming someone. A backup may help if your first choice cannot serve.

When no agent can act, state law determines who may make healthcare decisions. Family relationships and disagreements can affect that process. A signed proxy document records your choice but does not guarantee that disputes will never arise.

Advance Directive and Living Will

An advance directive records healthcare choices ahead of time. A living will is one type of advance directive; it describes treatment preferences for circumstances covered by the document. A healthcare proxy names a person to make decisions when you cannot.MedlinePlus describes the different forms.

State forms may combine treatment instructions and a healthcare-agent appointment, or use separate documents. Check what your form covers and share your wishes with the person you name.

An advance directive only works if it is accessible. Give copies to your healthcare proxy, your usual doctor, and any specialists treating you for chronic conditions. If you are hospitalized, bring a copy or ensure it is in your medical record. Some states maintain advance directive registries where you can register your document so it is available to medical providers in an emergency.

HIPAA Authorization

HIPAA is the Health Insurance Portability and Accountability Act. An authorization permits the health-information disclosures described in the form. HIPAA also allows some communication with people involved in your care without a separate written authorization. HHS explains when providers may share information with family and friends, including during incapacity.

Authority to make medical decisions and permission to receive health information are related questions. A provider may need to check the agent’s authority, the information requested, and the applicable privacy rules. A document may include authorization language for particular disclosures.

A records authorization can identify who may receive information and what may be shared. Ask the provider which form and scope apply to the records you want released.

Letter of Instruction

A letter of instruction is not a legal document. It has no binding legal authority. But it is one of the most practical things you can leave for your family and executor. It fills in the details that legal documents do not cover: where your original documents are located, account numbers and bank and investment provider contacts, your attorney and accountant's contact information, funeral and burial preferences, instructions for pets, subscription services that should be cancelled, and any personal messages or explanations.

Because it is not a legal document, you can update it at any time without witnesses or notarization. Write it yourself in plain language. Keep it with or near your other estate planning documents and tell your executor it exists.

A letter can record where to find a digital-asset inventory and secure access instructions. Keep passwords and recovery codes in protected storage. Separate account information from any document that may become public through court filing.

Record where your documents are kept

The National Institute on Aging’s checklist suggests keeping important papers together or recording their locations, then telling a trusted person or lawyer where to find them.

Use the document-location sheet to map current originals, copies and contact routes. It has space for who knows the location and an access question. Keep passwords and recovery codes in separate protected storage.

The FDIC’s storage guidance explains that bank-box access after death depends on state law and directs readers to an attorney for original-will storage guidance. Record the actual location and whom to ask about access.

Sources for this section: National Institute on Aging, “Getting Your Affairs in Order Checklist: Documents to Prepare for the Future” (content reviewed February 1, 2023); Federal Deposit Insurance Corporation, “Five Things to Know About Safe Deposit Boxes, Home Safes and Your Valuables” (Winter 2018; updated August 1, 2023).

Executing Estate Planning Documents Properly

An estate planning attorney can review the documents and signing rules for your situation. To identify planning questions, use our free Estate Planning Assessment. For a broader overview of the planning process, read our guide to estate planning basics, and for how to arrange the planning tasks, the estate plan document order. The IRS overview of estate and gift taxes provides context on the tax side of larger estates.

What Happens to These Documents When You Are Gone

After death, a will can guide probate administration and a trust can govern its own property. The nominated executor and successor trustee still need the authority their roles require. Financial power-of-attorney authority generally ends at death. Healthcare documents may also record wishes about organ donation or other matters, so their effect needs a separate review.

Your executor and trustee become fiduciaries. They are legally required to act in the best interests of the estate and its beneficiaries. The Consumer Financial Protection Bureau's guide to managing someone else's money is a good starting point for trustees, guardians, and agents under a power of attorney.

For practical, state-specific guidance on settling an estate, see Settled Estate's resources by state. If you want to understand the strategies that keep assets out of court, read our guide on how to avoid probate. If you are just beginning to build your estate plan, start with our Estate Planning Checklist for a step-by-step action plan.