Nearly two-thirds of Americans don’t have a will, according to recent surveys — and most think estate planning is something you do when you’re old. Or wealthy. Or have a beachfront vacation home and a wine cellar.

It’s actually simple: If you have people you love or care who inherits your assets, you need an estate plan.

The best part? You don’t need 20 complicated legal forms to get there. These seven documents cover the essentials: protecting your money, your medical wishes and the people left sorting things out if you get sick or die.

Here’s the clearest breakdown you’ll read all year — what each document is, why it matters and how they all work together. Once you understand the basics, work with a financial advisor who specializes in estate planning to integrate them into your retirement, tax and investment strategies.

1. A last will and testament

This is a classic — the document everyone knows they “should” have. Your will explains who gets what when you die. It also officially designates your executor, the person in charge of carrying out your wishes.

If you die without a will, state law decides everything for you — who inherits, who doesn’t and even who raises your kids. And spoiler: The default rules rarely line up with real families or real relationships.

What your will can do:

  • Name guardians for minor children or pets

  • Decide who inherits your money, heirlooms and personal items

  • Appoint an executor you trust to manage your estate

Even a simple will online through Rocket Lawyer or LegalZoom is better than nothing. You can then update your will anytime your life changes — like after a new baby, a new partner, a divorce or a new home.

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2. A living trust

A living trust — also called a revocable trust — works alongside your will, but it does a few things a will can’t.

The big one? It keeps your estate out of probate — the long, public court process that can drag on for months and cost thousands. A trust also lets someone you designate manage your assets if you’re ever unable to, without requiring court approval.

Trust aren’t essential for everyone, but they become extremely valuable if you:

  • Own a home or investment properties

  • Have minor kids or dependent adults

  • Value privacy when it comes to your personal life

  • Own property in multiple states or one with high probate costs

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3. Financial power of attorney (POA)

A financial POA lets someone you trust step in and manage your money if you can’t — paying your bills, accessing your accounts, handling insurance claims, filing taxes and managing properties.

Even if you’re married, your spouse may not have legal authority to access certain accounts, sign tax forms or manage assets without your explicit permission.

A POA fixes that gap.

It’s especially important if you:

  • Manage most household finances

  • Travel frequently or for extended periods

  • Want adult children prepared to step in someday

You can make a POA effective immediately or choose a “springing” POA that activates only if you’re incapacitated.

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4. Healthcare power of attorney (healthcare proxy)

Your healthcare power of attorney — or healthcare proxy — names the person who makes medical decisions on your behalf if you’re ever unable to speak or decide for yourself.

Without a healthcare POA, doctors and medical professionals default to state law, which can vary widely. Depending on where you live, your legal “decision maker” could be a spouse, child, parent or other relative in a legal, predetermined order that may not align with your actual wishes or family dynamics.

Your proxy doesn’t have to be your closest relative. Choose a person who:

  • Stays calm under pressure

  • Respects your wishes, even difficult ones

  • Can advocate effectively with medical staff or in an emergency

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5. A living will or advance health directive

Your living will — also called an advance health directive — works hand-in-hand with your healthcare POA, but it does something different: it spells out your actual medical wishes.

That includes your preferences for:

Think of it this way: If your healthcare POA is your voice, your living will is the script. It keeps your family from guessing — or arguing about — what you would have wanted.

Many people assume living wills are only for seniors. But accidents and medical emergencies don’t discriminate by age. Every adult should have one.

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6. HIPAA authorization

A HIPAA authorization is small but critical. It allows doctors to share your medical information with specific people you name.

Without it, even your spouse or adult children can be denied access to your records and important conversations around treatment. Your healthcare proxy may also be blocked from getting info until you’re officially declared unable to make your own decisions.

Your HIPAA authorization document ensures:

  • Your healthcare proxy gets information immediately when needed

  • Family members can speak directly with your care team

  • No one’s left in the dark during a crisis

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7. Beneficiary designations

This is one that most people overlook — and it’s one of the most important.

Your beneficiary forms — the ones attached to retirement accounts, bank accounts, life insurance and some investment accounts — override your will. That means you could update your will today, but if your ex-spouse is still listed on your 401(k), guess who gets the money?

Not your current spouse. Not your kids.

Yup, the ex.

Review and confirm your beneficiaries on:

  • 401(k) or 403(b) accounts

  • Pension or employer plans

  • Bank accounts with TOD or POD designations

  • Brokerage and investment accounts

Most providers let you update beneficiaries online in under 10 minutes — at no cost.

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What to do next (you can start today)

Estate planning can feel overwhelming, but getting started is simpler than you think.

Start with these three steps:

  1. Choose your people. Who do you trust with medical decisions? Financial decisions? Guardianship of your kids? Identifying the right people is the hardest part — and once you do, it’s 80% of the work done.

  2. Fill out the basics. Most states offer free healthcare directive and POA forms online. Search your state’s government sites or contact your local Area Agency on the Aging. Your employer likely has beneficiary forms you can update in minutes. It costs nothing and protects you immediately.

  4. Coordinate with your overall financial plan. A financial advisor who offers estate planning services can make sure these documents work together with your retirement accounts, tax strategy and investment goals. Look for an advisor who offers comprehensive planning so that nothing falls through the cracks.

Other stories you’ll likeAbout the writer

Cassidy Horton is a finance writer who specializes in banking, insurance, lending and paying down debt. Her expertise has been featured in NerdWallet, Forbes, MarketWatch, CNN, USA Today, Money, The Balance and Consumer Affairs, among other top financial publications. Cassidy first became interested in personal finance after paying off $18,000 in debt in 10 months of graduation with an MBA. Today, she’s committed to empowering people to stand up and take charge of their financial futures.

Article edited by Kelly Suzan Waggoner

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